Quantum Fund’s George Soros
Known as ‘the man that broke the Bank of England’ George Soros has been trading and stock investing since 1952. He is recognized as the man that brought the Quantum Fund to life and is considered one of the wealthiest men in the world today. He is very active today in philanthropic endeavors as well as in human rights, education and politics.
George Soros was born in Budapest, Hungry in 1930. He left his home country and fled to England at the age of 17, attending London School of Economics where he graduated in 1952. He took his first job with a London investment bank before immigrating to the US in 1956. He held down analyst and investment management jobs for F.M. Mayer, Wertheim & Company and Arnhold & Bleichroeder until 1973.
Soros founded his own company Soros Fund Management in 1973 and was known for dealing with hedge funds. These funds were eventually turned into Quantum Fund, a well known and respected investment even today. Soros ran the fund aggressively and successfully until the late 1980s, posting returns in excess of 30% annually and annual returns of more than 100%.
Since retiring from the day to day operation of Quantum Fund, Soros has put his time into philanthropic work through his Open Society Foundation. He tours the world as a political lecturer and received an honorary degree from Oxford University for his work.
Claim to Fame
Soros’ main claim to fame came in 1992 when he made a single currency speculation of $10 billion shorting the pound. His speculation turned out to be correct, netting him a profit of close to $2 billion on the single trade. He earned the nickname above because of this speculation.
It is also believed that Soros was the ‘trigger’ of the 1997 Asian financial crisis because of his bet against the Thai Baht.
Why was he successful?
Considered a short term speculator, Soros made a name for himself in bonds and currencies, translating economic trends into leveraged plays in the industry. He had a knack for making successful best on the direction the markets would take and he described them as ‘chaotic’. Soros believed that prices of currencies and securities were due to the humans that bought and sold the assets and that they acted primarily on their emotions instead of on logic.
Soros felt that traders often influenced one another and that they moved in herds, something he did himself. However, whenever he saw an opportunity to move ahead of the herd, he did, going on his ‘instinctive, physical reaction’ to the markets to tell when to buy and sell.
George Soros is the author of the following books on trading and investing:
- "The Alchemy Of Finance" by George Soros (1988)
- "Soros On Soros: Staying Ahead Of The Curve" by George Soros(1995)
- "Open Society: Reforming Global Capitalism" by George Soros(2001)
- "The Bubble Of American Supremacy: Correcting The Misuse Of American Power" by George Soros(2003)
- "Soros: The Life And Times Of A Messianic Billionaire" by Michael Kaufman(2002)
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