Global Financial Strategy - Soros hedge fund blames SEC for exit

Global Financial Strategy

Search the site >>Advanced search

First for financial regulatory news and views

Soros hedge fund blames SEC for exit

Tuesday 26 July 2011 – by Jacqui Street

A major US hedge fund is closing its books to outside investors blaming new US stock exchange rules.

The Soros investment firm’s Quantum Fund will become a fully family-owned business after 40 years of trading.

The company was founded in 1969 by George Soros, who became famous for becoming a billionaire by short-selling the British pound in 1992 and is also renowned for his philanthropy.

In a letter to investors, Soros’s two sons and deputy chairmen, Jonathan and Robert, say new Securities and Exchange Commission regulations will require advisers to register by March 2012.

“We have relied until now on other exemptions from registration which allowed outside shareholders whose interests aligned with those of the family investors to remain invested in Quantum. As those other exemptions are no longer available under the new regulations, SFM will now complete the transition to a family office that it began eleven years ago.”

Related articles:

Aima: ‘No hedge funds should be Sifis’

SEC brings in hedge funds registration

Global hedge fund assets rise 13%

Soros says euro ‘flawed from inception’

Hedge funds employ ‘300,000’ people

The Soros family says the Quantum fund was repackaged in 2000 and will continue, but without outside investment.

“We will no longer be able to manage assets for anyone other than a family client as defined under the regulations.”

This year the fund was reported to have $27.9bn (€19.2bn) in assets under management and was ranked highly among international hedge funds.

The Soros’ say the company will return capital to outside investors, most likely at year end.

WHAT DO YOU THINK?

Name:

Email:

Comment:

Post as	Anonymous
	Display name

Please, enter security code

No comments yet.

Login	Register	Most read	Most commented
Username Password >> Remember me >> Forgotten your password? >> Sign Up GFS is pleased to offer you a two-week free trial. You will receive a daily email bulletin of the latest regulatory news and analysis and a weekly email round-up. Please complete the free trial form. You will also receive full access to our online site.

EDITOR’S CHOICE

INTERVIEWS & FEATURES

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

FIND A REGION