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Soros Fund Management

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Soros Fund Management, LLC
Company typePrivate
IndustryFinancial services
Founded1970; 54 years ago (1970) in New York City, U.S.
FounderGeorge Soros
Headquarters
New York City
,
US
Area served
Worldwide
Key people
AUMUS$25 billion
Websitesorosfundmgmt.com

Soros Fund Management, LLC is a privately held American investment management firm. It is structured as a family office, but formerly as a hedge fund. The firm was founded in 1970 by George Soros[1] and, in 2010, was reported to be one of the most profitable firms in the hedge fund industry,[2] averaging a 20% annual rate of return over four decades.[3] It is headquartered at 250 West 55th Street in New York City.[4] As of 2023, Soros Fund Management, LLC had US$25 billion in AUM.[5]

George Soros founded Soros Fund Management in 1970.

Overview

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Soros Fund Management is the primary adviser for the Quantum Group of Funds; a family of funds in international investments.[6] The company invests in public equity and fixed income markets worldwide, as well as foreign exchange, currency, and commodity markets, and private equity and venture capital funds.[7] The company is reported to have significant investments in transportation, energy, retail, financial, and other industries.[8]

Robert Soros stepped down as deputy chairman and president in June 2017. David Milich assumed most of his duties.[9] In 2017, Dawn Fitzpatrick replaced Ted Burdick as chief investment officer.[10][11]

In the 2016 election cycle, Soros Fund Management donated over $10 million to Hillary Clinton's presidential campaign through super PACs.[12]

History

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The company was founded by George Soros and his former business partner Jim Rogers in 1970.[13] Before starting the business Soros and Rogers worked together at the investment bank Arnhold and S. Bleichroder.[14]

1992 to 2007

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In the week leading up to September 16, 1992, or "Black Wednesday," Quantum Funds earned $1.8 billion by shorting British pounds and buying German marks.[15] This transaction earned Soros the title of "the Man Who Broke the Bank of England". On the other hand, British government policy in the period before the ejection of the pound sterling from the Exchange Rate Mechanism of the European Monetary System had been widely criticised for providing speculators with a one-way bet.[16]

In 2000, the Quantum Fund lost its position as the largest hedge fund in the world when its assets under management changed from $10 billion to $4 billion in about a year.[17] The fund's losses resulted from investments in technology stocks.[17] That year, CEO Duncan Hennes and the managers of the Quantum Fund, Stanley Druckenmiller, and Quota Fund, Nicholas Roditi, resigned.[17] The restructuring of Soros Fund Management was announced in a shareholder letter that outlined its plan to merge the Quantum Fund with the Quantum Emerging Growth Fund to form the Quantum Endowment Fund.[17][18] The intention was to transform the Quantum Fund into a "lower-risk, less-speculative fund" administered by an outside adviser.[17][19]

2008 to 2011

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The firm acquired a stake in Lehman Brothers just prior to its failure in 2008.[8]

In 2009, Soros Fund Management partnered with six other hedge funds to acquire IndyMac Bank for $13.9 billion, thereby gaining control of an estimated $160 billion in bank loans, investments, and deposits.[20]

In 2010, the company was reported to have created $32 billion in profits since 1973, making it one of the top profit-making hedge funds in the industry.[2]

In 2011, the firm was reported to have $27.9 billion in assets under management and was ranked sixth on Institutional Investor's Hedge Fund 100 list.[21] That same year, the company partnered with Silver Lake Partners and created fund called Silver Lake Kraftwerk whose focus was investing in natural resource and energy companies.[22]

In July 2011, the fund announced plans to return just under $1 billion to investors by the end of 2011 to avoid reporting requirements under the Dodd-Frank reform act and to focus on family investments.[23] That month, the company's chief investment officer Keith Anderson, co-founder of BlackRock left the firm.[24]

2012 to 2024

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In September 2016, Soros Fund Management advised a private investment fund tied to Quantum Strategic Partners, which injected the bulk of $305 million into SolarCity, a producer of solar panels.[25] The flow of cash allowed Elon Musk, chairman of Tesla Motors and SolarCity, to purchase SolarCity and merge it with Tesla.[26][27]

In June 2018, the firm was reported to own 15% of Justify, the horse that won the 2018 Preakness Stakes, Kentucky Derby and Belmont Stakes, through the international breeding and racing operation of SF Bloodstock and SF Racing Group.[28][29]

According to The Wall Street Journal, Soros Fund Management gained 8.9% in 2017 and 0.9% in 2018.[30] In the first quarter of 2019, the fund had gained 1.9%.[30]

In May 2019, it was announced that Soros Fund Management had built up a 3% stake in Swiss asset manager GAM.[31] In June 2019, Soros Fund Management led an investment in Vice Media for $250 million.[32] In August 2019, Soros Fund Management increased its stake In Manolete Partners Plc To 11.67%.[33] As of August, 2019, Soros Fund Management's most significant holdings were Liberty Broadband, Vici Properties, and Caesars Entertainment.[34]

In January 2020, George Soros announced at the World Economic Forum that he would commit $1 billion to the launch of an international university, The Open Society University Network, for research and education on climate change and dealing with authoritarian governments.[35][36]

In April 2020, Amply Power, a company that provides charging solutions for fleets, received its series A funding of $13.2 million from Soros Fund Management, Siemens, Congruent Ventures, PeopleFund, and Obvious Ventures.[37][38]

In November 2020, Soros Fund Management disclosed that it holds 1% Class A shares in Palantir Technologies and announced that it has begun selling its shares as allowed because it disagrees with Palantir's business practices. In a statement to the CNBC, the company said, "SFM made this investment at a time when the negative social consequences of big data were less understood. SFM would not make an investment in Palantir today."[39][40]

In February 2024, Soros Fund Management emerged as the largest creditor in Audacy's prepackaged Chapter 11 bankruptcy proceedings, holding over $400 million of its highest-ranking debt. This debt is planned to be converted into equity in the restructured company, making Soros a significant shareholder. Audacy views this development as a positive sign, interpreting it as a "vote of confidence" in the company's future.[41]

In November 2024, Soros Fund Management closed its Hong Kong Office.[citation needed]

References

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  1. ^ "George Soros". Forbes. Retrieved 2017-08-07.
  2. ^ a b Griffiths, Tony (October 6, 2010). "The HFMWeek 50 most influential people in hedge funds". HFMWeek. Archived from the original on 9 October 2010. Retrieved 5 August 2011.
  3. ^ Ahmed, Azam (27 July 2011). "Soros to Close His Fund to Outsiders". DealBook. New York Times. Retrieved 26 September 2011.
  4. ^ "Soros Fund Management LLC: Private Company Information - Bloomberg". www.bloomberg.com. Retrieved 2019-05-23.
  5. ^ "Bloomberg Billionaires Index". Bloomberg.com. 2023-06-16. Retrieved 2023-06-16.
  6. ^ Michael T. Kaufman (11 March 2003). Soros: The Life and Times of a Messianic Billionaire. Random House Digital, Inc. pp. 193–. ISBN 978-0-375-70549-6. Retrieved 7 August 2011.
  7. ^ "Investing BusinessWeek". Archived from the original on December 11, 2008. Retrieved June 13, 2011.
  8. ^ a b "Hoovers". Retrieved June 13, 2011.
  9. ^ "Robert Soros is stepping down from his father's legendary fund to start his own venture". Business Insider. Reuters. Retrieved 2019-04-09.
  10. ^ Kishan, Saijel (6 June 2018). "Soros's One-Time Investment Chief Ted Burdick Has Left". Bloomberg News. Retrieved 3 July 2018.
  11. ^ "Men Bet She Would Fail; Now She Runs a $26 Billion Fund". The New York Times. 8 April 2017. Retrieved 3 July 2018.
  12. ^ Vogel, Kenneth P. "George Soros rises again". POLITICO.
  13. ^ Robert Slater (2009). Soros: the world's most influential investor. McGraw-Hill Professional. pp. 164–. ISBN 978-0-07-160844-2. Retrieved 7 August 2011.
  14. ^ White, Gregory. "Jim Rogers: "All Of You Who Have MBAs Have Made Mistakes" And You Should Be Farmers Instead". Business Insider. Business Insider Inc. Retrieved June 15, 2015.
  15. ^ Burton, Katherine (July 31, 2008). "Soros Successors Thiel, Howard Prove Global Bears Rule Markets". Bloomberg L.P. Retrieved 27 July 2011.
  16. ^ Opalesque (17 August 2009). "Soros Fund Management holdings $4.2 billion at June 30, 2009".
  17. ^ a b c d e Welsh, James (July 1, 2000). "Street Talk - Soros Hedge Fund Managers Depart". On Wall Street.
  18. ^ Lois Peltz (5 April 2001). The new investment superstars: 13 great investors and their strategies for superior returns. John Wiley and Sons. pp. 19–. ISBN 978-0-471-40313-5. Retrieved 7 August 2011.
  19. ^ Soros' Quantum Fund Replaces Top Strategist - After Big Tech Losses, Fund Will Take A Lower-Risk Approach, "Investor's Business Daily", May 1, 2000.
  20. ^ Stephen Todd Walker (7 January 2011). Wave Theory For Alternative Investments: Riding The Wave with Hedge Funds, Commodities, and Venture Capital. McGraw-Hill Professional. pp. 366–. ISBN 978-0-07-174286-3. Retrieved 2 August 2011.
  21. ^ "The 2011 Hedge Fund 100 Ranking". Institutional Investor, Inc. May 12, 2011.
  22. ^ Lattman, Peter (24 February 2011). "Silver Lake Starts Clean Energy Fund". New York Times. Retrieved 27 September 2016.
  23. ^ Holmes, Robert (2011-07-26). "Soros Returns Capital, Avoids Dodd Frank". TheStreet, Inc.
  24. ^ Zuckerman, Gregory (July 26, 2011). "Soros Investment Chief's Departure Comes Amid Poor Performance". Wall Street Journal. Retrieved 8 August 2011.
  25. ^ Daily, Investor's Business (2016-09-12). "SolarCity Rises On Project Equity Funding From Soros-Affiliated Outfit | Stock News & Stock Market Analysis - IBD". Investor's Business Daily. Retrieved 2021-05-11. {{cite news}}: |first= has generic name (help)
  26. ^ "SolarCity raises $305 million in a deal advised by Soros' firm". Reuters. 2016-09-12. Retrieved 2021-05-11.
  27. ^ "George Soros Bails Out Elon Musk With $305M SolarCity Investment". The Stream. 2016-09-12. Retrieved 2021-05-11.
  28. ^ Hoppert, Melissa; Goldstein, Matthew (7 June 2018). "A Secretive Investor in Triple Crown Contender Justify: George Soros". New York Times. Retrieved 3 July 2018.
  29. ^ Bowden, John (7 June 2018). "George Soros is part owner of Triple Crown contender Justify". The Hill. Retrieved 3 July 2018.
  30. ^ a b Chung, Juliet; Lim, Dawn (2019-04-24). "Soros Fund's New Leader Upends Firm in Strategic Overhaul". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-05-23.
  31. ^ "Soros fund builds 3% stake in Swiss asset manager GAM". Reuters. May 24, 2019. Archived from the original on May 24, 2019 – via uk.reuters.com.
  32. ^ Spangler, Todd (May 4, 2019). "Vice Media Gets $250 Million in Debt Funding From George Soros, Other Investors". Variety.
  33. ^ "BRIEF-Soros Fund Management Ups Stake In Manolete Partners To 11.67% - Filing". Reuters. August 27, 2019. Archived from the original on September 22, 2019 – via uk.reuters.com.
  34. ^ "Soros Fund Management Institutional Ownership". Fintel. Retrieved 2020-01-31.
  35. ^ Burton, Katherine (23 January 2020). "George Soros commits $1 billion to start global university to fight climate change". Financial Post. Retrieved 2021-05-11.
  36. ^ "CEU founder George Soros to splash $1B on Open Society University Network". Science|Business. Retrieved 2021-05-11.
  37. ^ FinSMEs (2020-04-28). "Amply Power Raises $13.2M in Series A Funding". FinSMEs. Retrieved 2021-05-11.
  38. ^ "Amply Power Draws Backing of Siemens, Soros Fund Management in Series A". www.greentechmedia.com. Retrieved 2021-05-11.
  39. ^ Shead, Sam (2020-11-19). "George Soros' fund is offloading Palantir shares because it 'does not approve' of its business practices". CNBC. Retrieved 2021-05-11.
  40. ^ GmbH, finanzen net. "Palantir jumps 18% after Steve Cohen's Point72 discloses 30-million-share stake". markets.businessinsider.com. Retrieved 2021-05-11.
  41. ^ Carman, Ashley; Pollard, Amelia (2024-02-14). "Billionaire Soros to Become Biggest Stockholder in US Radio Company". Yahoo! Finance. Bloomberg News. Retrieved 2024-02-14.
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