Soros will hand back $1bn to investors in a move he says was heralded by new hurdles in the already tortuous US hedge fund regulatory system.
Investors in Soros’ Quantum fund were told by his sons Jonathan and Robert that they will have their capital returned after a short winding-down period.
They cited new rules forcing investment advisers to register with the Securities and Exchange Commission (SEC). Quantum, which is run as a family office, had been granted an exception to SEC rules, which allowed it to manage others’ capital. But new tougher rules have closed this exception, forcing it to return any non-qualifying capital.
Octogenarian Soros will part company with his highly regarded chief investment officer Keith Anderson, who has steered Quantum’s advisory body Soros Fund Management since 2008. The two men had bonded over their bleak view of the economy in the lead-up to the financial crisis. Anderson will seek new opportunities within the hedge fund community.