Soros Recounts Top Investment Ever

George Soros is well regarded in the finance industry as being one of the most savvy investors in the world. George Soros has managed the Soros Funds for over 50 years, which has helped individual and institutional investors earn billions of dollars in value appreciation. While his investors have turned rich, so has George Soros as the head of the funds. He is estimated to have a net worth of over $25 billion, which makes him one of the richest people in the world.

While George Soros has executed many successful trades over the course of his career, one trade in particular may have allowed him to grow to such a significant level in the hedge fund industry. During the early 1990s Great Britain was struggling with significant levels of inflation and currency devaluing compared to the rest of the world. While the country was fighting very hard to keep the pound valuable compared to the rest of the world, many of the most savvy investors on http://www.valuewalk.com/2016/05/george-soros-broke-gbp-trade-century/ across the world saw this as a great investment opportunity.

By September 1992 the Soros Quantum Fund had invested heavily against the Britain currency. The fund had over $15 billion in assets bet against the pound’s value when compared to other currencies across the globe. While a portion of this was from raised equity on https://en.wikipedia.org/wiki/Soros_Fund_Management, they also borrowed heavily on margin to maximize this. Finally, on September 17, 1992 Great Britain ended up reducing the value of the pound by 25% compared to the US Dollar.

This one trade alone had a significant increase in value for the Soros Quantum Fund. The value of the fund ended up increasing from $15 billion to $19 billion overnight and it allowed the fund to invest in more and more asset types, which allowed the fund to grow to over $22 billion in assets within the next year. While this was great for the fund, it was also great for George Soros and the other fund managers, whom were allowed to take 20% of the valuation increase in personal compensation, which essentially gave over $1.5 billion to Soros and the fund managers. Many in the finance world consider this to be the most profitable hedge fund investment ever. 


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