Montreal, Canada

Don't do as they say, but rather do as they do…

Hedge fund legend, George Soros, whose Quantum Fund ranks as the most profitable global macro hedge fund over the last forty years, pulled an about-face on the public last month at the Davos World Economic Forum in Davos, Switzerland.

Soros, interviewed by Bloomberg and CNBC in January at Davos, lamented that gold was the 'ultimate asset bubble' and that there was "no alternative to the dollar."

But yesterday, SEC filings in the United States show that Soros Fund Management purchased 6.2 million shares of GLD, or the gold-backed SPDR exchange-traded-fund, worth $663 million dollars in Q4 2009. That position increased from 2.5 million shares of GLD in Q3.

The $25 billion dollar New York-based firm became the fourth largest holder in the SPDR Gold Trust, a pretty impressive statistics for someone who's resolutely bearish.

So while Soros has been slamming gold recently his famous hedge fund continues to build a stake in the yellow metal.

After the Davos comment on gold, Richard Russell, one of my favorite investment analysts and commentators, chastised Soros for the bearish remark. Russell, who began his career publishing Dow Theory Letters back in 1957, ripped into Soros; why was such a smart man talking down gold? Soros had made fortunes in his career shorting the dollar and surely America's profligate spending since 2008 must be a concern for the savvy hedge fund manager.

Soros, however, has become a big part of the Obama establishment. The investor extraordinaire and philanthropist was a major supporter of the Obama campaign; he was recently awarded economic incentives in the energy patch among other undisclosed economic favors.

Though I certainly can't quantify these political kickbacks, it seems a fair assessment that Soros is closely tied to Obama Administration. Does he publicly support the dollar while simultaneously accumulate gold as a hedge?

Along with John Paulson, heavily long and strong gold and gold stocks since 2009, George Soros joins the list of prominent money-managers building stakes in gold.

At least gurus like Paulson have come clean and stand behind their gold stakes. Soros, on the other hand, says one thing and does another. But one thing they both have in common is that they're bullish on gold. The odds that Paulson and Soros are wrong on this trade are highly unlikely.