Soros to End Hedge Fund Career, Return Money

[xchrom]

http://www.bloomberg.com/news/2011-07-26/soros-to-end-four-decades-as-hedge-fund-leader-by-returning-investor-cash.html

George Soros, the billionaire best known for breaking the Bank of England, is returning money to outside investors in his $25.5 billion firm, ending a career as hedge-fund manager that spanned more than four decades.

Soros, who turns 81 next month, will hand back the money, less than $1 billion, by the end of the year, according to two people briefed on the matter. His firm will focus on managing assets solely for Soros and his family, according to a letter to investors. Keith Anderson, 51, chief investment officer since February 2008, is leaving, said the letter, signed by Soros’s sons Jonathan and Robert, who are co-deputy chairmen.

“We wish to express our gratitude to those who chose to invest their capital with Soros Fund Management LLC over the last nearly 40 years,” they said in the letter. “We trust that you have felt well rewarded for your decision over time.”

The move completes Soros’s transformation from a speculator, who in 1992 made $1 billion betting that the Bank of England would be forced to devalue the pound, to philanthropist statesman, a role he first imagined for himself as a Hungarian émigré studying at the London School of Economics after World War II, according to Soros’s writings. In the last 30 years, he’s given away more than $8 billion to promote democracy, foster free speech, improve education and fight poverty around the world, he said in a recent essay.

[OneGrassRoot]

1. K&R n/t

[Tuesday Afternoon]

2. k&r

[RussBLib]

3. He probably suspects the US will default on debt...

...which could wipe out billions of dollars of savings. So get out now while you still can.

Geez, the lengths the Republicans will go to to "beat" Obama. The country be damned.

I guess we'll try to ride it out. Might be a stupid thing to do.

[rhett o rick]

4. Would love to have a source for your last sentence. Thanks for posting. nm

[kelly1mm]

5. He does not want to be subject to the new SEC disclosure rules.

Here is an excerpt:

"Soros’s sons said they took the decision because new financial regulations would have made it necessary for the firm to register with the Securities and Exchange Commission by March 2012 if it continued to manage money for outsiders. Because the firm has overseen mostly family assets since 2000, when outside money accounted for about $4 billion, they decided it made more sense to run it as a family office, according to the letter.

The rule calls for hedge funds with more than $150 million in assets to report information about their investors and employees, the assets they manage, potential conflicts of interest and their activities outside of fund advising. Registered funds will also be subject to periodic inspections by the SEC.

“We have relied until now on other exemptions from registration which allowed outside shareholders whose interests aligned with those of the family investors to remain invested in Quantum,” the executives said in the letter, referring to its flagship Quantum Endowment Fund. “As those other exemptions are no longer available under the new regulations, Soros Fund Management will now complete the transition to a family office that it began eleven years ago.”

[Broderick]

6. That is bothersome

[banned from Kos]

8. Proof that Dodd-Frank has fangs.

Carl Icahn is doing this too.

Hedge funds work in murky water - but when Long Term Capital went down they had to be bailed out (Clinton term - and private investors did the bailing).

[Guy Whitey Corngood]

7. Good! Now he can focus on financing the islamo-communist-fascist caliphate. nt

[yurbud]

9. wow, I thought this was an Onion piece when I saw the part after the comma.

[ck4829]

10. Ah, it looks like the Overlord wants to focus on Project X

Whoops, said too much, everybody should prepare for level 3 memory wipe. Sorry.

[banned from Kos]

11. I never have understood why some grass roots Dem piss all over FinReg

I support it 100%.

[jwirr]

12. K&R Hmmm, does that mean marketers should get out of the speculation

business as soon as possible? A lot of people have watched to see what he did before they made their moves.

[SoCalDem]

13. "Hand it back".. it was all a game, and he's tired of playing?

hand it back to whom?..the fellow players? the people who "lost" the game along the way and were forced out? :shrug:

[banned from Kos]

14. Bullshit - handback means investors were returned their capital

plus gains.

Making money is a + for 200 million of us.