George Soros Shorted Deutsche Bank To Profit From A Brexit Trade

Billionaire investor George Soros said he wasn't short the British pound, but did acknowledge some of his other investments profited from the post-Brexit turmoil and global equity sell-off.

According to a report by Bloomberg, one of Soros' bets that paid off was a massive 7 million share short position in Deutsche Bank AG (USA) DB's German-listed stock.

Related Link: George Soros Was On The Losing Side? Billionaire Was 'Long' On Pound Ahead Of Brexit Vote

Deutsche Bank's stock plummeted 14 percent on Friday after the Brexit vote was finalized. The stock closed at 13.37 euros on Friday, continued to fall on Monday and was trading at 12.89 euros during the European afternoon session on Tuesday.

Bloomberg noted Soros' position implies he was short 0.51 percent of the bank's share capital, but the average price is not known.

Soros' rational behind shorting a German-based bank, rather than a British bank was not detailed. However, Bloomberg suggested the turmoil from the Brexit vote could force banks to take losses on trading assets and scale back on lending funds to major corporate clients for M&A activities.

"That may complicate Deutsche Bank's efforts to lift returns and capital levels to reverse a stock slump that has made it the worst-valued global lender," Bloomberg further argued.

Posted In: NewsShort IdeasEurozoneGlobalMarketsTrading IdeasBloombergBrexitDeutsche BankGeorge Soros
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