George Soros Gets Most of His $2 Billion Back From Bessent
The two are said to have made a deal on returning the capital
Bessent’s Key Square hedge fund is said to gain 8% this year
Excerpt
Originally published May 14, 2018 at 11:52am EST
Very few hedge fund managers start with $2 billion from investor George Soros. One who did, Scott Bessent, has returned much of it as part of a prearranged deal.
The plan between the two men called for Bessent, who started Key SquareGroup in 2016, to give back Soros’s capital as the hedge fund gathered assets from other investors, according to a person familiar with Soros’s family office who requested anonymity. Soros was down to $853 million in a managed account at Key Square at the end of 2017, according to a March regulatory filing.
Bessent, who had earlier served as the chief investment officer at Soros Fund Management, has collected about $5.1 billion in assets, according to a filing.While getting money from Soros was an early boost for Bessent, Key Square’s record of mostly outperforming rival macro managers has helped lure new capital from investors.
“If you are running money for him and you are putting up good numbers, everybody in the world wants a piece of you,” said Richard Klitzberg, whose namesake firm helps hedge funds find investors.
Klitzberg said deals like the one between Soros and Bessent are not uncommon. Both sides have something to gain. Startup managers get additional cash flow. And Soros gets to continue investing with Bessent. […]