George Soros’ Soros Fund Management LLC boosted its stake in GDX in the first quarter and added to its position in Barrick Gold (NYSE: ABX) as well. David Einhorn’s Greenlight Capital has held a position in GDX since the ETF last traded in the mid-$40s. [Paulson, Soros Still Love Gold ETFs]
In another sign that investors of all skill levels are stridently bullish on gold miners, they are not cozying up to high-flying inverse, leveraged miners ETFs.
Over the past month, the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST) and the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JDST) have seen redemption activity while the Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) and the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JNUG) have seen creation activity, according to Direxion data.
That despite the fact that JDST and DUST are Direxion’s two best bearish ETFs this month while NUGT and JNUG are the issuer’s second- and third-worst leveraged bullish plays, respectively.
Direxion Daily Gold Miners Bear 3X Shares
Tom Lydon’s clients own shares of GLD.