George Soros is a legendary investor for a reason – he gets the job done. From 1969 to 2000, when he retired, Soros averaged returns of over 30% a year. When Soros got back in the game in 2007, he generated a 32% return that year. Then, in 2008, which was the worst year for many companies (hedge funds included), Soros was able to rake in returns of 8%. In 2009, Soros brought in 29%. The next year, Soros returned only a few percentage points and last year Soros returned outsider investor money.
According to Reuters, that upheaval in Soros’ fund is continuing. “one of his sons is separating some of his personal fortune to manage it himself,” reports the news service. “Jonathan Soros, who stepped down in September from day-to-day management of Soros Fund Management LLC… intends to set up his own family office – something the Soros Fund converted to last year – with the help of David Kulsar, currently chief risk officer for the Soros Fund.”
There is no indication of a feud or anything like that. By all accounts, it appears that Jonathan Soros just wants to manage some of his own money. According to Reuters, he will continue as chairman of the senior Soros’ foundation but it does beg the question as to how Soros’ fund will do without him and whether Soros may be on the way to stepping out of investments entirely.
Reuters explains, “These developments are part of an ongoing series of structural changes as the Soros fund evolves as a family office.”