Rethinking The Soros Fortune
Bloomberg Businessweek|December 09, 2019
The head of the legendary asset management shop has pulled back from risk
Katherine Burton & Katia Porzecanski
Rethinking The Soros Fortune

In November, Dawn Fitzpatrick, chief investment officer of Soros Fund Management, was being interviewed on a finance podcast called Capital Allocators. At the top of the program, the host sent out an appeal: “Dawn contends that Soros has a uniquely attractive platform for the right type of leading investors to apply their trade,” he said before reciting an email address, twice, for interested managers to send their résumés.

It’s not unusual for a company to let the world know they’re hiring, but that kind of open call is surprising given the mystique the Soros name has in the investing world. George Soros is known for bold moves such as his 1992 bet against the British pound, which earned him the moniker “the man who broke the Bank of England.” In its heyday, his hedge fund returned more than 30% a year.

But it’s a very different operation now. It has to be. Fitzpatrick started her job in 2017, the year Soros finished transferring about $18 billion of his wealth to the Open Society Foundations, the world’s largest funder of groups promoting justice, democracy, and human rights. For the first time, most of the money at the firm belonged to the charity rather than to Soros and his family.

It’s been a wrenching shift. In the two and a half years since Fitzpatrick took the helm at the $25 billion firm, she’s been looking for more talent after replacing 13 portfolio managers she fired or who quit. She’s hired, 15 new managers. In the meantime, returns have failed to keep up with those of peers or with the foundation’s own long-term benchmark. In part that’s because Fitzpatrick reduced risk more than a year ago. She says returns were also muted by the performance of some private equity and hedge fund investments leftover from prior management.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEKView all
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023