Another Soros Buy

I'll follow up a bit on the subject of yesterday's entry ... what is George Soros investing in these days?

Soros Fund Management has of late increased the size of its position in the investment bank Lehman Brothers. At the end of the first quarter of the year, SFM owned only 10,000 shares of Lehman. But by the end of the second quarter, June 30, it owned 9.47 million.

He is fishing in troubled waters. Lehman's shares have fallen by 75% so far this year as the credit crunch has played itself out. When Bear Stearns tanked in March and had to sell itself for the proverbial song, rumor had it that Lehman was 'next.'

Indeed, the SEC has reportedly investigated those rumors, on the theory that they may have been spread by stock munipulators.

Soros' confidence may itself prove an important shot in the arm for Lehman.

Meanwhile, today's Wall Street Journal, specifically the "Deals & Deal Makers" column, paints a doom-and-gloom portrait of Lehman's present situation, saying that it is likely the bank will report third quarter losses, "instead of the modest profit they previously expected."

The 3d quarter isn't over yet. I suspect Lehman itself is encouraging such reports, in order to lower the bar so that if it DOES have to report 3d quarter losses when the time comes, the street will regard the report as "old news."

Have I mentioned lately that nothing I say in this blog should be regarded by any rational person as investment counsel? If not: consider it mentioned!