The ‘Bloom’ Is Off Dennis Gartman’s ‘Rose’ – Ignore Him On Gold

I have always had the impression that Dennis Gartman was nothing more than a manipulative outlet for a few big hedge funds. His appeal caters to ‘high net worth’ retail investors and ‘low level’ professional/institutional investors. He’s the perfect ‘stool pidgeon’ for hedge funds who want to move a bad position or accumulate a potential winner by getting Gartman to promote the opposite of what these hedge funds are trying to do (the strategy for which Goldman is know and for which Bill Gross was known in his ‘hey-day’ at Pimco).
The most recent example of this is with regard to the recent news that Stanley Druckenmiller took down a $300 million-plus position in gold via GLD during Q2. Gartman reported on Friday that: ‘One should be careful about Mr. Druckenmiller’s positioning in gold, for we were told yesterday by one or two others that he’s already liquidated his gold position into last week’s strong advance.’
Anyone who has observed Druckenmiller since his early days running Soros’ main hedge fund knows that Druckenmiller takes highly concentrated, long term macro bets. He wouldn’t put on a massive GLD position and then turn around and sell it a week or a month or even a few months later just to scalp a few points. He’s playing for a least 50% here and likely a double or triple.

This post was published at Investment Research Dynamics on August 31, 2015.