Scott Bessent, who had been managing George Soros’ $30 billion fortune for the past four years, officially launched his own hedge fund this week with $2 billion in assets, Bloomberg News reports.
Bessent’s Key Square Group, a global macro hedge fund, will be running $4.5 billion by the end of the first quarter, making it the third-largest launch for a hedge fund, the report said.
It’s definitely the highest-profile launch of 2016.
To put it in perspective, the largest hedge fund launch was by Convexity Capital, which in 2006 had more than $6 billion in capital.
Bessent, 53, is well known in the global macro investing world. He is also widely considered a protégé of Soros.
In 2011, he rejoined Soros Fund Management – a family-office hedge fund – as its chief investment officer. Earlier in his career, he had run Soros’ European investments for eight years before setting out on his own.
As a student, Bessent was a liberal-arts major who had planned to pursue a career in journalism. He really wanted to be the editor of the Yale Daily News, but he didn’t get the position. He ended up taking an internship for the famed money manager Jim Rogers.
“I like this. It’s just like journalism – you gather a lot of information and make a decision, but instead of writing a story with an angle, you make an investment with an angle,” Bessent said in Steven Drobny’s book “Inside The House of Money.”
After graduation, Bessent went to work for Brown Brothers in equity research for about six months. As he told Drobny, he hated it. He then went on to help manage the money of a wealthy Middle Eastern family.
After working for the Middle Eastern family, Bessent joined Kynikos Associates, the hedge fund founded by short seller Jim Chanos. In 1991, Bessent made the move to Soros Fund Management.
Bessent worked at Soros Fund Management from 1991 until 2000. By age 29, Bessent was running Soros’ European fund.
In 2000, the then-37-year-old Bessent left Soros and decided to start his own hedge fund, Bessent Capital, based in London and New York.
“George is going to be 70 in August and I think his parameters have changed,” he said at the time. “I am a young guy. If I were 20 years older, I would probably have the same attitude that he has and would be happy with double-digit returns. However, over the past nine years I have had a compound annual return of 30 [percent] in Europe on a capital base of $1 billion to $2 billion and I hope to be able to replicate that.”
Bessent was quickly able to raise $1 billion for the fund.
He ended up losing more than 10% in his European stock fund in the first half of 2001, according to Bloomberg. His investors started to pull out, so he decided to move back into macro investing. He ended up returning outside money and transitioning to a family-office format in 2005.
In 2007, he was appointed as director of research and strategy at Protégé Partners, a New York-based fund of funds.
He had been in the middle of forming Key Square Group, the macro fund, when he was recruited by Soros Fund Management in September 2011.
And now he has finally launched.
- Activists Have Declared War on Hedge Funds — and They Might Be Winning
- Suspicious Packages Have Now Been Delivered to Hillary Clinton, George Soros, Barack Obama, CNN and More
- What is Hunter Biden's Net Worth? Joe Biden's Son Worked as a Lobbyist, Hedge Fund Owner, Consultant
- Battleground Florida: Soros-Funded Groups Work to Register 1.4 Million Ex-Felons Ahead of 2020
- Ukraine's Soros'-Inspired Education Reforms Turning Into a Complete Catastrophe
- I Found Nicole Mincey, Trump’s Biggest Twitter Fan. She Isn’t a Bot, But She Has a Ton of Secrets.
- Full Throttle’s Tim Schafer on Mark Hamill and Being Asked Not to Touch George Lucas
- The 69 biggest, weirdest moments of the decade in PC gaming
- Trump, terror and Brexit: Biggest stories of 2016, the year the world was rocked by tragedy
- 'Biggest queue I've EVER seen at my polling station': Turnout looks huge as thousands are ALREADY lining up to vote in Britain's most crucial election in a generation - as Boris Johnson and Jeremy Corbyn give final call to arms
- My life changed in a second: Sir David Frost's family was devastated when he died suddenly. What they didn't know was he'd passed on a condition that would claim his son's life at just 31 – as his youngest child reveals in this emotional interview
- Italy's Mr Scissors gives markets jitters over fate of eurozone
- Did Trump Save Protégé
- Hardline Eurosceptic Tories warn Boris Johnson not to 'betray' them on Brexit as they say they will not vote for a re-hashed version of Theresa May's deal
- Don't expect midcaps to deliver meaningful alpha in next three years: Nitin Jain, Edelweiss Global Wealth
- Caldara: If Democrats got rich by building stuff, regulatory system would look different
- Column: Two billionaires explain why they shouldn’t pay more taxes, unlike you poor saps
- 'Joe is not playing with a full deck' says Donald Trump as Biden escalates attack on president - but is tripped up by his own gaffes including saying 'poor kids are as bright and talented as white kids'
- I'm NOT dropping out of 2020 race says Cory Booker after failing to make the stage in next Democratic debate
- With or without Trump, GOP insurgency plans for a civil war in 2018 midterms
George Soros’ protégé just nailed one of the biggest hedge fund launches ever have 914 words, post on www.businessinsider.my at January 5, 2016. This is cached page on Business News. If you want remove this page, please contact us.