Soros closes his main hedge fund to escape new regulations « Mining Blog

Soros closes his main hedge fund to escape new regulations

28. July 2011,

In July 2011, the world-renowed philantropist, George Soros -who has mainted signficiant shareholders in a wide range of mining companies during the past decade, announced that he would be closing his Quantum Endowment Fund to outside investors.

There can be little escaping the fact that this was to avoid scrutiny of the Fund’s ivestments under new rules enforcd bythe US Securitiesand Exchange Commission

According to Soros’own sons, the new regulatiobns “that would have made it necessary to register with the Securities and Exchange Commission [SEC], the US financial watchdog, by March 2012, if the firm had continued to manage money for outsiders”. [Guardian, 26 July 2011].

Under the new rules, hedge funds with more than $150m in assets must report information about their investors and the assets they manage, including potential conflicts of interest.

In a letter to shareholders, Soros executives announced: “We have relied until now on other exemptions from registration which allowed outside shareholders whose interests aligned with those of the family investors to remain invested in Quantum.

“As those other exemptions are no longer available under the new regulations, Soros Fund Management will now complete the transition to a family office that it began 11 years ago.” [Guardian, 26 July 2011].


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