|Soros Dumps Green Investments|
|by Tom McGregor||Tue, Mar 5, 2013, 02:58 AM|
Leftist billionaire tycoon George Soros is dumping his shares of Green Energy companies and buying up oil & gas stocks. He believes that buying pollution is where he’s going to make the big bucks in the near future. Will his investment strategy work?
According to MarketWatch, "Soros also liked Anadarko Petroleum, buying up almost 760,000 shares of the oil and gas company. 62 filers in our database reported a position in Anadarko, which made it the most popular energy stock among hedge funds. Anadarko's earnings multiples are in the teens- the trailing and forward P/Es are 17 and 15 respectively – but that represents a premium to the major oil companies and the company’s revenue has actually been down. It might be worth looking at on the basis of its popularity but we aren’t particularly excited about the stock."
Soros shored up his pollution index by buying 950,000 shares in Plains Exploration & Production. The oil and gas company is an acquisition target as Freeport McMoran Copper & Gold plans to buy it and a related company. Many investors like to invest in merger arbitrage since returns are uncorrelated with the stock market, though there are of course risks. Plains itself had expanded from natural gas to offshore oil assets as early as 2012.
To read the entire article from MarketWatch, link here:
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