Following a $5 billion plunge in assets, philanthropist George Soros vows to overhaul the world’s largest hedge fund to ensure a more reliable stream of income to fund his charitable activities, Reuters reports.
“The days of our large macro bets are over,” said Soros, who became famous for wagering billions in daring global market speculations.
The $8.5 billion Quantum Fund will be relaunched as the Quantum Endowment Fund, Reuters reports. The fund’s top two managers have resigned.
“I screwed up,” said fund manager Stanley Druckenmiller, who resigned after the Quantum Fund lost 20 percent in assets in the first three months of 2000.
“This business is a bit like a drug. When you’re doing well, it’s hard to quit,” Druckenmiller told Reuters.
The 69-year old Soros said the fund’s new, more conservative style better reflects his age and his interest in spending more time on philanthropy, Reuters reports.
Hedge funds – private investment vehicles for wealthy individuals and institutions – often make out-sized bets with borrowed money. Their large investments often cause ripple effects in financial markets, Reuters reports.