Bloomberg announces that George Soros is closing his $25 billion hedge fun to outside investors–though there’s only about $1 billion in outside money to return. The firm will now solely manage the Soros family’s money. Even though Soros’s Quantum fund has posted an average of 20% returns since 1969 under Soros, Druckenmiller and others. The firm only made 2.5% last year and is 6% in the hole so far in 2011. Those numbers and the firm’s widely reported 75% cash position mark the evolution of the fund from swashbuckling speculator to safe harbor investor:
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. […]
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.
Soros to End Hedge-Fund Career, Return Money to Investors
by Katherine Burton
July 26, 2011; Bloomberg