Soros Lost $1 Billion Since Trump Won The White House
- Author: Ronnie Bowen Jan 15, 2017,
Jan 15, 2017, 0:40
A Soros-backed hedge fund start up, Glen Point Capital, suffered major losses as a result of market volatility in November.
Worse yet for the aging investment magnate, his former deputy Stanley Druckenmiller, who had incidentally helped the famed investor reap a billion dollars from betting against the British pound in 1992, proved to have the superior foresight of the two men, at least in this case. Mr. Soros adjusted his positions and exited many of his bearish bets late a year ago, avoiding further losses, [sources said]. The reason is the unexpected victory of Donald Trump, that fact caused a stock market rally after the U.S. presidential election in 2016.
The broader portfolio held by Mr. Soros performed better as Soros Fund Management LLC, which manages about $30 billion, gained 5% over the year, according to the Journal. To be sure, Soros wasn't alone as many other experts had predicted a tumble for stocks in the wake of the election, but instead the Dow Jones Industrial Average has climbed 9.3%.
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Mr. Druckenmiller, who left Mr. Soross firm in 2000 and now invests his own money, took a very different stance on the presidential election.
The bet seems have paid off and racked up sizable gains that allowed his Duquesne Capital Management fund to gain 10% in 2016, according to people close to the matter. Druckenmiller, who supported Ohio Governor John Kasich during the 2016 election, gave roughly $3.5 million to Republican candidates, according to the Center for Responsive Politics.
The unexpected victory of Donald Trump became an extremely influential factor for the stock market and its players. Actually, the markets' reactions ahead of the vote provided false preview of how it might respond to the outcome of November's election.