The billionaire financier is returning funds that clients had invested in the Soros Fund Management’s Quantum Group of Funds, opting instead to run the funds as a personal investment vehicle. Why is one of the most successful investors of all time taking his money and going home? In a word, regulation. Soros claims he is the “victim” of a Dodd-Frank Act provision requiring hedge funds and private equity funds to register with the Securities and Exchange Commission by March 2012.
Soros and his sons, Robert and Jonathan, will convert the company to a “family office” to manage their estimated $25 billion hedge fund, thus avoiding the new SEC rules that impose new registration, reporting, and recordkeeping requirements for hedge and private equity funds.
