Profits from what George Soros considers as oncoming economic troubles have promoted him to return to trading. The philanthropist expects large market shifts. In anticipation of these shifts, Soros has been making a series of bearish investments.
Recently, Soros Fund Management sold its stocks and made huge purchases of gold. Soros Fund Management manages Soros and his family’s $30 billion. In times of economic turmoil, most investors turn to gold. The billionaire hedge-fund expert made headlines in 1992 when he made a huge fortune from a bet against the British Pound. Soros has contributed to the Super PAC. He backs Hillary Clinton’s presidential candidature. In addition, Soros has donated to different institutions that support Democrats.
At his firm, Soros is believed to be filling a void that was created after Scott Bessent left to establish and manage his hedge fund, Key Square Group. Scott had unmatched background in macro investing. He was Soros’ top investor. In order to fill the void, Soros enlisted the services of Ted Burdick to serve as his chief investment officer. Ted’s background is in arbitrage trading, distressed debt and other forms of trading. However, he did not have experience in macro investing, which is Soros’s specialty. It is for this reason that Soros had to step back in.
George Soros is skeptical about the Chinese economy because it is slowing. To this end, he believes that any unwinding of Chinese investments shall have global implications. In an email, Soros said that China was suffering from capital flight. He went on to assert that the country had been using its foreign exchange reserves compared to other Asian countries that were accumulating the same. Soros believes that China’s political leadership is facing internal conflict. This way, the country will face complications on how to deal with financial issues.
Soros contends that China will face new troubles because of its unwillingness to have a transparent political system. He is worried about weaknesses in the Chinese market, which may exert deflationary pressure on the United States and other economies around the world. According to Soros, the European Union may collapse because of the migration crisis, United Kingdom’s exit from the EU and the financial crisis in Greece.
People close to Soros posit that he closely monitors investments made by his firm. Some senior executives posit that Soros will be more involved with the operations of the firm, especially if it suffers losses. In recent years, he has made minimal investments of his own. Since the beginning of this year, Soros has been directing trades in his office. In addition, he has been contacting executives on a regular manner.
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About George Soros
George founded both Soros Fund Management and the Open Society Foundations several decades ago. He is a graduate of the London School of Economics. For a while, George worked in the Wall Street before establishing his own investment fund. It is through this fund that Soros accumulated wealth. Since 1979, Soros has been donating to various initiatives. He is also an author. His essays and articles have appeared in different magazines and newspapers around the globe.
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