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
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]
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]
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
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
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]
