Who Is 'George Soros'

George Soros is a famous hedge fund manager who is widely considered to be one of the world's greatest investors. Soros managed the Quantum Fund, a fund that achieved an average annual return of 30% from 1970 to 2000. Besides his investing prowess, Soros is also known for his vast philanthropic activities and has donated billions of dollars to various causes through the Soros Foundation. Thought to have retired from investing, The Wall Street Journal announced that Soros was once again trading in 2016 through his family office Soros Fund Management LLC and he has remained active in 2017. 

Breaking Down 'George Soros'

George Soros is most famous for his single-day gain of $1 billion on September 16, 1992, which he made by short selling the British pound. At the time, England was part of the European Exchange Rate Mechanism, a fixed exchange-rate system that included other European countries. The other countries were pressuring England to devalue its currency in relation to the other countries in the system or to leave the system. England resisted the devaluation, but with continued pressure from the fixed system and speculators in the currency market, England floated its currency and the value of the pound suffered. By leveraging the value of his fund, Soros was able to take a $10 billion short position on the pound, which earned him $1 billion. This trade is considered one of the greatest trades of all time, and Soros is often credited as the man who broke the Bank of England.

George Soros' Investment Style

George Soros is unique among highly successful investors in that he allows instinct to play a large role in his investment decisions. Soros is famously well informed about economic trends on a regional and global level and he uses this knowledge to exploit market inefficiencies with large, highly leveraged bets. Soros has both the capital and the risk tolerance to ride out these bets longer than many other hedge funds. In fact, Soros has cowed a number of national governments on currency issues with his perseverance and deep pockets. During the Asian Financial Crisis, Soros added to his growing list of monikers and became the man who broke the Bank of Thailand. 

Despite Soros' deep knowledge of global markets and excellent sources of information, the decision to close out a bet is reportedly more a gut call than any market signal. One popular theory is that Soros has internalized so much of the market and its workings that he instinctively knows when the time has come to close out for a profit long before he can rationalize the decision. Whether that is true or not, whatever Soros is doing has made him a fortune that few investors in the world — basically anyone without the last name Buffett — can match. 

RELATED TERMS
  1. Black Wednesday

    Black Wednesday refers to September 16, 1992, when a collapse ...
  2. Super Currency

    A supranational currency printed by the International Monetary ...
  3. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by ...
  4. Invest, Then Investigate

    An investment strategy where investors purchase a stock first ...
  5. Hedge Fund

    A hedge fund is an aggressively managed portfolio of investments ...
  6. Hedge Fund Manager

    A hedge fund manager is an individual who oversees and makes ...
Related Articles
  1. Investing

    Where Does George Soros Keep His Money?

    Learn about where George Soros keeps his massive fortune. Discover how Soros has supported various candidates and political causes during his career.
  2. Investing

    Soros Upends Portfolio, Makes Big Bets on Info Tech

    Soros Fund Management upended its portfolio in Q1, with info tech getting the bulk of the attention.
  3. Investing

    George Soros Bets Against Trump: 13F

    Some of Soros' holdings are likely to profit if stocks fall as a result of uncertainty surrounding President Trump.
  4. Managing Wealth

    George Soros: The Philosophy Of An Elite Investor

    George Soros spent decades as one of the world's elite investors. He didn't always come out on top, but when he did, it was spectacular.
  5. Financial Advisor

    George Soros Worried about China's Financial System

    George Soros is concerned about Chinese credit markets, likening China's current situation to that of the US just prior to the 2007 credit crunch.
  6. Investing

    Why George Soros Tripled His Amazon Investment in Q3

    According to a recent filing with the SEC, Soros more than tripled his investment in the company in just a few months.
  7. Investing

    Soros Eliminates Gold Stake in Q3 2016: 13F Filing

    Billionaire George Soros made headlines earlier this year when he re-entered the gold market. Now recent regulatory filings indicate he is selling again.
RELATED FAQS
  1. How is Warren Buffett Plan Bequeathing his Estate?

    Find out how much Warren Buffett is leaving for his heirs and how he wants the funds invested after his death. Learn about ... Read Answer >>
  2. Where does a hedge fund get its money?

    Learn how a hedge fund is structured and how the managing partner of the fund goes about the process of finding and soliciting ... Read Answer >>
  3. What currency is affected by the interest rate decisions of the Bank of England (BoE)? ...

    The Bank of England (BoE) is responsible for the interest rate decisions that affect the economy of Great Britain. As with ... Read Answer >>
  4. Has the Efficient Market Hypothesis been proven correct or incorrect?

    Explore the efficient market hypothesis and understand the extent to which this theory and its conclusions are correct or ... Read Answer >>
  5. Are there publicly traded hedge funds?

    See why a privately arranged hedge fund may decide to take its fund public, and how the investing public at large can gain ... Read Answer >>
Hot Definitions
  1. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
  2. Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better.
  3. Current Ratio

    The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
  4. Return on Investment (ROI)

    Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency ...
  5. Interest Coverage Ratio

    The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a company can pay interest ...
  6. Cash Conversion Cycle - CCC

    Cash conversion cycle (CCC) is a metric that expresses the length of time, in days, that it takes for a company to convert ...
Trading Center