Soros Fund Management
| Company type | Private |
|---|---|
| Industry | Investment management |
| Founded | 1970 |
| Founder | George Soros |
| Headquarters | New York City , United States |
Area served | Global |
Key people | George Soros (Chairman), Dawn Fitzpatrick (CEO) |
| Products | Hedge fund, family office, investment management |
Soros Fund Management is a privately owned American investment management company, established in 1970 by George Soros. Initially launched as a hedge fund, it has since transitioned into functioning as a family office. The firm is recognized for its impressive financial results, achieving an average annual return of 20% over a span of forty years. As of 2023, it oversees roughly US$25 billion in assets under management (AUM), with its main office located in New York City.
Overview
Acting as the chief adviser to the Quantum Group of Funds, Soros Fund Management concentrates on global investment opportunities. Its investment portfolio spans multiple asset classes including public equities, fixed income, foreign currencies, commodities, private equity, and venture capital. The company maintains substantial holdings in industries such as transportation, energy, retail, and financial services.
Leadership includes founder George Soros serving as chairman and CEO Dawn Fitzpatrick, who took over following Robert Soros’s resignation from his roles as deputy chairman and president in 2017. That same year, Fitzpatrick succeeded Ted Burdick as chief investment officer, strengthening the firm’s executive team and strategic direction.
From a strategic and market perspective, Soros Fund Management has been active in political funding, notably contributing over $10 million via super PACs to Hillary Clinton’s 2016 presidential campaign. The firm’s extensive global operations combined with a diversified investment strategy contribute to its sustained competitive edge and ongoing growth within the financial sector.
History
The firm was created in 1970 by entrepreneur George Soros alongside his former associate Jim Rogers, both of whom had previously worked at the investment bank Arnhold and S. Bleichroeder.
1992 to 2007
During the week leading up to September 16, 1992 ("Black Wednesday"), Quantum Funds profited $1.8 billion by short-selling British pounds while purchasing German marks, solidifying Soros’s reputation as "the Man Who Broke the Bank of England." Nevertheless, prior British government policies before the pound's withdrawal from the Exchange Rate Mechanism were criticized for enabling an imbalanced arbitrage opportunity favoring speculators.
By the year 2000, assets under management at Quantum Fund had dropped dramatically from $10 billion to $4 billion within twelve months, primarily due to losses in technology sector stocks. This decline triggered the resignations of CEO Duncan Hennes along with key executives Stanley Druckenmiller and Nicholas Roditi. Following this downturn, Soros Fund Management announced plans to restructure by merging the Quantum Fund with the Quantum Emerging Growth Fund to establish the Quantum Endowment Fund. This new fund was designed to pursue a lower-risk approach with reduced speculative activity under external advisory supervision.
2008 to 2011
The firm acquired shares in Lehman Brothers shortly before its collapse in 2008.
In 2009, Soros Fund Management collaborated with six hedge funds to purchase IndyMac Bank for $13.9 billion, thereby gaining control over about $160 billion in loans, investments, and deposits.
By 2010, the company had accumulated $32 billion in profits since its inception in 1973, ranking among the highest-earning hedge funds. In 2011, it managed assets totaling $27.9 billion and was ranked sixth on Institutional Investor's Hedge Fund 100 list. That year also saw a partnership with Silver Lake Partners to launch Silver Lake Kraftwerk, a fund targeting investments in natural resources and energy sectors.
In July 2011, the firm announced plans to return close to $1 billion to investors in order to circumvent Dodd-Frank reporting requirements and concentrate on managing family assets. The same month marked the exit of chief investment officer Keith Anderson, who was also a co-founder of BlackRock.
2012 to 2024
In September 2016, a private fund affiliated with Quantum Strategic Partners, advised by Soros Fund Management, invested $305 million in SolarCity, facilitating Elon Musk's acquisition and integration of the company into Tesla.
By mid-2018, through SF Bloodstock and SF Racing Group, the firm held a 15% ownership in Justify, the victor of the 2018 Triple Crown.
The Wall Street Journal reported that Soros Fund Management achieved returns of 8.9% in 2017 and 0.9% in 2018, followed by a 1.9% increase in the first quarter of 2019.
In May 2019, the firm purchased a 3% equity position in Swiss asset manager GAM. The following month, it spearheaded a $250 million financing round for Vice Media. By August, its stake in Manolete Partners Plc rose to 11.67%. Other notable investments included holdings in Liberty Broadband, Vici Properties, and Caesars Entertainment.
At the World Economic Forum in January 2020, George Soros pledged $1 billion to establish The Open Society University Network, aimed at advancing research on climate change and authoritarian regimes.
In April 2020, Amply Power obtained $13.2 million in Series A funding from Soros Fund Management alongside other investors to develop fleet charging infrastructure.
By November 2020, Soros Fund Management revealed ownership of a 1% stake in Palantir Technologies but began divesting shares, citing disagreements with Palantir’s corporate practices and expressing that it would refrain from investing today due to concerns about the societal impact of big data.
In February 2024, Soros Fund Management emerged as the largest creditor in Audacy's Chapter 11 bankruptcy case, holding more than $400 million in senior debt set to convert into equity, thereby becoming a principal shareholder—a development Audacy regards as an endorsement.
In November 2024, Soros Fund Management officially shut down its office in Hong Kong.