AntZ
07-26-2011, 06:29 PM
Soros to close Quantum fund to outsiders
By Dan McCrum in New York
July 26, 2011 2:54 pm
George Soros, the billionaire hedge fund manager, is closing his Quantum fund to outside investors and returning their money.
The fund, which will continue to manage about $24.5bn of Mr Soros’ own money, blamed the decision on new financial regulations requiring it to register with the Securities and Exchange Commission.
“An unfortunate consequence of these new circumstances is that we will no longer be able to manage assets for anyone other than a family client as defined under the regulations”, Jonathan and Robert Soros, George’s sons and co-deputy chairmen of the fund, wrote in a letter to investors on Tuesday.
The fund is returning about $750m of capital to outside investors, according to a person familiar with the situation. Keith Anderson, chief investment officer since 2008, is also leaving the fund.
The move brings an end Mr Soros’ four-decade career as a hedge fund manager. A Hungarian emigré, he made more than $1bn in 1992 betting that the UK would be forced to devalue sterling and pull out of the European exchange rate mechanism.
Mr Soros started Quantum in 1973 and developed a reputation for trading on instinct .
Since inception, the firm has returned roughly 20 per cent annually. At the end of June, however, Quantum was down 6 per cent for the year to date. Speaking in April, Mr Soros told a panel of investors that “I find the current situation much more baffling and much less predictable than I did at the time of the height of the financial crisis”.
After the technology burst in 2000, Mr Soros returned most of the fund’s outside capital, or about 40 per cent of the $11bn then under management, in order to concentrate on his philanthropic work with the Soros Foundation.
The remaining capital was largely farmed out to other hedge fund managers. Mr Soros returned to active management in 2007 during the early stages of the financial crisis.
Other hedge fund veterans including Stanley Druckenmiller, who managed Quantum in the 1990s, and Carl Icahnhave also recently decided they will no longer manage other people’s money.
“It demonstrates that hedge funds, at least as we once knew them, are gone, replaced by far more transparent entities”, said Anthony Sabino, professor at the Tobin College of Business.
http://www.ft.com/cms/s/0/42bd6288-b785-11e0-b95d-00144feabdc0.html
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We sure can't have any accountability like the little people have! :hand: Better to close up shop then shine a little light on the books!
By Dan McCrum in New York
July 26, 2011 2:54 pm
George Soros, the billionaire hedge fund manager, is closing his Quantum fund to outside investors and returning their money.
The fund, which will continue to manage about $24.5bn of Mr Soros’ own money, blamed the decision on new financial regulations requiring it to register with the Securities and Exchange Commission.
“An unfortunate consequence of these new circumstances is that we will no longer be able to manage assets for anyone other than a family client as defined under the regulations”, Jonathan and Robert Soros, George’s sons and co-deputy chairmen of the fund, wrote in a letter to investors on Tuesday.
The fund is returning about $750m of capital to outside investors, according to a person familiar with the situation. Keith Anderson, chief investment officer since 2008, is also leaving the fund.
The move brings an end Mr Soros’ four-decade career as a hedge fund manager. A Hungarian emigré, he made more than $1bn in 1992 betting that the UK would be forced to devalue sterling and pull out of the European exchange rate mechanism.
Mr Soros started Quantum in 1973 and developed a reputation for trading on instinct .
Since inception, the firm has returned roughly 20 per cent annually. At the end of June, however, Quantum was down 6 per cent for the year to date. Speaking in April, Mr Soros told a panel of investors that “I find the current situation much more baffling and much less predictable than I did at the time of the height of the financial crisis”.
After the technology burst in 2000, Mr Soros returned most of the fund’s outside capital, or about 40 per cent of the $11bn then under management, in order to concentrate on his philanthropic work with the Soros Foundation.
The remaining capital was largely farmed out to other hedge fund managers. Mr Soros returned to active management in 2007 during the early stages of the financial crisis.
Other hedge fund veterans including Stanley Druckenmiller, who managed Quantum in the 1990s, and Carl Icahnhave also recently decided they will no longer manage other people’s money.
“It demonstrates that hedge funds, at least as we once knew them, are gone, replaced by far more transparent entities”, said Anthony Sabino, professor at the Tobin College of Business.
http://www.ft.com/cms/s/0/42bd6288-b785-11e0-b95d-00144feabdc0.html
______________________________________
We sure can't have any accountability like the little people have! :hand: Better to close up shop then shine a little light on the books!