Quantum Group of Funds

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The Quantum Group of Funds are privately owned hedge funds based in London, New York, Curaçao (Kingdom of the Netherlands) and Cayman Islands. They are advised by George Soros through his company Soros Fund Management. Soros started the fund in 1973 in partnership with Jim Rogers. The shareholders of the funds are not publicly disclosed although it is known that the Wallenberg family, Rothschild family and other wealthy Europeans put $6 million into the funds in 1973.[1]

In 1987, the funds lost $800 million on Japanese stocks shortly before the October 19, 1987 stock market crash.[2]

In 1992, the lead fund, Soros' Quantum Fund, became famous for 'breaking' the Bank of England, forcing it to devalue the pound. Soros had bet his entire fund in a short sale on the ultimately fulfilled prediction that the British currency would drop in value, a coup that netted him a profit of $1 billion,[3] also known as Black Wednesday. In 1997, Soros was blamed for forcing sharp devaluations in Southeast Asian currencies.[4]

On February 14, 1994, the funds had a major loss of $600 million in one day betting against the Japanese yen.[2]

The fund lost US$2 billion in investments in Russia during the 1998 Russian financial crisis.[5]

In July 2011, to avoid having to register with the SEC[6] and comply with reporting requirements under the Dodd-Frank reform act, the Quantum Fund announced they would be turning the fund into a family investment group and returning all outside money to investors by the end of 2011.[7] The fund is now managing Soros' family money as well as working with retail investors.[8]

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References[edit]

  1. ^ "Quantum Funds Online". 2009-04-19. Archived from the original on 2009-04-19. Retrieved 2020-06-07.
  2. ^ a b "Money Speculator Soros Weathers $600-Million Blow : Currency: The widely watched billionaire, who manages the international Quantum Group funds, appears to have shaken off the rumors that he is in financial trouble". Los Angeles Times. 7 March 1994. Retrieved 23 October 2021.
  3. ^ Niall Ferguson: The Ascent of Money. A Financial History of the World. Penguin Books, London 2009, ISBN 978-0-14-103548-2
  4. ^ David Serchuk (April 13, 2007). "Burma's Billionaire". Forbes.
  5. ^ Gretchen Morgenson. (Aug. 27, 1998). Soros's Quantum Fund Losses in Russia Put at $2 Billion New York Times.
  6. ^ "George Soros closes funds: the letter in full". Telegraph.co.uk. Retrieved 2017-08-02.
  7. ^ McCrum, Dan (27 July 2011). "Soros to close Quantum fund to outsiders". Financial Times. Archived from the original on 18 December 2017. Retrieved 2017-08-02.
  8. ^ Mark DeCambre (February 10, 2014). "George Soros's fund killed it in 2013, but most hedge funds didn't". Quartz (publication).

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