Legendary hedge fund manager George Soros, perhaps best known for forcing the British government to devalue the pound during the infamous “Black Wednesday” market crisis, is retiring from investing.
A letter to shareholders signed by Soros’ sons Robert and Jonathan blames new hedge fund regulation required under the Dodd–Frank Wall Street Reform and Consumer Protection Act. Soros’ Quantum Fund will return roughly $750 million to investors.
“We are writing to inform you of an important new development relating to regulations recently announced by the U.S. Securities and Exchange Commission,” the letter begins. “As you may know, the new regulations will require certain private investment advisers to register with the SEC by March 2012. An exception to this requirement is available if an organization operates as a family office.”
As a consequence, the investing scions write, the Quantum Group of Funds will “no longer be able to manage assets for anyone other than a family client as defined under the regulations. As a result, SFM will ask Quantum’s Board to return the relatively small amount of non-qualifying capital to outside investors before the registration deadline, most likely at year end.”