Billionaire investor George Soros' hedge fund bought more shares of blue chips AT&T Inc. (T) and Monsanto Co. (MON) in the third quarter, according to a regulatory filing late Monday.

Soros, who has said that gold is the ultimate bubble, reduced his direct ownership stake in the SPDR Gold Trust, a gold-backed exchange-traded fund, by 501,300 shares to 4.7 million shares. The position was valued at $600.8 million on Sept. 30.

He disclosed, however, call options on 705,000 shares of the SPDR Gold Trust, which will appreciate in value if shares of the fund rise. Soros had previously reported a 46,389 "shared" holding in the fund, but reported no such position at the end of the third quarter.

The value of Soros's stock holdings was $6.7 billion at the end of the third quarter. The fund reported stockholdings worth $5.1 billion at the end of the second quarter. The value changes due to a combination of market action and share purchases and sales.

Soros Fund Management bought 1.3 million shares of AT&T, raising the value of the position to $51.4 million as of Sept. 30, according to a filing with the U.S. Securities and Exchange Commission.

Soros also purchased 897,813 shares of Monsanto--his second-largest holding on a dollar basis--during the quarter. The position is now valued at $312.6 million.

The fund also reported a new position in drug maker Dendreon Corp. (DNDN), disclosing that it purchased 1.8 million shares valued at $74.8 million at the end of the third quarter.

In a reversal from its second-quarter disclosure, the fund bought 2.1 million shares of pharmaceutical giant Pfizer Inc. (PFE). Soros had previously sold 5 million shares of Pfizer in the second quarter. His position is now valued at $41.4 million.

Additionally, Soros reported no stake in Best Buy Co. (BBY). The fund sold 936,895 shares during the third quarter.

Other new holdings include Mentor Graphics Corp. (MENT). Soros disclosed the purchase of 76.5 million convertible notes of the company, valued at $79.5 million

Many investors that manage more than $100 million are required to file 13-Fs with their stock holdings within 45 days of the end of a given quarter, giving the public its freshest possible glimpse into the portfolios of well-known money managers. Most hedge-fund managers and others wait until the last possible moment to make these filings.

The third quarter's deadline is Monday.

-By Brett Philbin, Dow Jones Newswires; 212-416-2173; brett.philbin@dowjones.com

 
 
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