Thursday, November 6, 2014
A Conversation with George Soros, Nouriel Roubini and Jeffrey Sachs СNN Earth Institute
In 1956, Soros moved to New York City where he worked as an arbitrage trader for F. M. Mayer (1956–59) and as an analyst for Wertheim & Co. (1959–63). He planned to stay for five years, enough time to save $500,000, after which he intended to return to England to study philosophy. During this period, Soros developed the theory of reflexivity based on the ideas of Karl Popper. Reflexivity posited that the valuation of any market produces a procyclical "virtuous or vicious" circle that further affects the market.
Soros' experience from 1963 to 1973 as a vice-president at Arnhold and S. Bleichroeder resulted in little enthusiasm for the job and a desire to assert himself as an investor to make reflexivity profitable. In 1967, First Eagle Funds created an opportunity for Soros to run an offshore investment fund as well as the Double Eagle hedge fund in 1969.
In 1970, Soros founded Soros Fund Management and became its chairman. Among those who held senior positions there at various times were Jim Rogers, Stanley Druckenmiller, Mark Schwartz, Keith Anderson, and Soros' two sons.
In 1973, due to regulatory restrictions limiting his ability to run the funds, Soros resigned from his First Eagle funds. He then established the Quantum Fund.
In August 2010, Soros acquired a 4 percent stake in the Bombay Stock Exchange (BSE) for about $35 million.
Soros announced in July 2011 that he had returned funds from outside investors' money (valued at $1 billion) and instead invested funds from his $24.5 billion family fortune due to U.S. Securities and Exchange Commission disclosure rules.
In 2013 the Quantum fund made $5.5 billion, making it again the most successful hedge fund in history. The fund has generated $40 billion since its inception in 1973.
Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics