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One of George Soros’ funds, the flagship Quantum Endowment Fund, is holding 75% cash right now according to Bloomberg, which spoke to two people familiar with the fund.That’s $19.125 billion cash the fund is holding, after the fund lost 6% YTD and it’s main portfolio manager, Keith Anderson, decided to cut his losses.
In mid-June, Anderson told his portfolio managers to pull back on trades as the hedge fund’s losses hit 6 per cent for the year, according to two people familiar with the New York-based firm. As a result, the fund is about 75 per cent in cash as it waits for better opportunities.
The Quantum Endowment Fund is the flagship fund after Soros merged the flagship Quantum Fund with the Quantum Emerging Growth Fund to form it in July 2000, after the departure of Stanley Druckenmiller and Nicholas Roditi.
Moore Capital has also decreased the amount of money it has in stocks, according to Bloomberg.
Will things get better? One PM is optimistic. Sander Gerber, founder of Hudson Bay Capital Management LP, a $1 billion multistrategy hedge fund in New York, told Bloomberg:
“It’s conceivable that if Greece were to default, that would spark a rally in the markets. Often, disasters mark the bottom.”
Anderson is one of the co-founders of BlackRock, where the was he was global fixed-income chief and managed Obsidian, the firm’s fixed-income hedge fund. Before that, he was at First Boston and Criterion Asset Management. He was named CIO of Quantum in 2008.
As far as he goes, Soros recently wrote in the Financial Times that a Greek default might be inevitable. He also said he blames the Euro crisis largely on Angela Merkel.