Biography of George Soros: From Refugee to Finance Titan
Biography of George Soros
George Soros, a Hungarian-American billionaire hedge fund
manager and philanthropist. Born György Schwartz on August 12, 1930, Soros has
amassed significant wealth over the years. As of October 2023, his net worth
stood at a staggering $6.7 billion. What sets Soros apart is his remarkable
generosity—he's donated over $32 billion to the Open Society Foundations, with
$15 billion already distributed. This represents a remarkable 64% of his
original fortune, earning him the title of the "most generous giver" by
Forbes, especially in terms of percentage of net worth. Despite his immense
wealth, Soros is known for his commitment to social causes and philanthropy.
He's a resident of New York, where he continues to make a significant impact on
various global issues through his charitable endeavors.
Early Life
George Soros came into the world on August 12, 1930, in
Budapest, within the Kingdom of Hungary. He was born into a well-off Jewish
family, but like many in their social circle, they didn't embrace their Jewish
heritage. In fact, Soros humorously refers to his childhood home as a
"Jewish antisemitic home." His mother, Erzsébet (also known as
Elizabeth), ran a prosperous silk store, while his father, Tivadar (also known
as Teodoro Ŝvarc), was not only a lawyer but also a prominent Esperanto author.
Tivadar, who had endured the hardships of being a prisoner of war during and
after World War I, instilled in his son a proficiency in Esperanto, even
editing an Esperanto literary magazine.
Education
In March 1944, when George Soros was just 13 years old,
Hungary fell under Nazi occupation. Like many Jewish children, he was forbidden
from attending school and instead was directed to report to the Judenrat, the
Jewish Council set up during the occupation. Soros later recounted his experience
during this time, recalling how he was tasked with distributing deportation
notices to Hungarian Jewish lawyers. His father instructed him to deliver the
slips of paper and warn the recipients that reporting would lead to
deportation, though the full extent of their fate was unclear.
Fortunately, Soros and his family managed to survive the war
by obtaining documents that falsely claimed they were Christians. In a
courageous act, Soros posed as the godson of an official in the
collaborationist Hungarian government, who himself had a Jewish wife in hiding.
His father, Tivadar, played a crucial role in saving not only their immediate
family but also many other Hungarian Jews, earning 1944 the title of "the
happiest year" in Soros's life for witnessing his father's heroism.
Following the war, Soros endured the Siege of Budapest in
1945, during which Soviet and German forces clashed throughout the city. He and
his mother sought refuge with the family of Elza Brandeisz, even attending
their Lutheran church services. At the age of 17, Soros relocated to Paris
before eventually settling in England. There, he enrolled at the London School
of Economics, studying under the philosopher Karl Popper. Despite facing
financial challenges, Soros worked odd jobs as a railway porter and waiter,
even receiving assistance from a Quaker charity. He was passionate about
internationalism, often speaking at Speakers' Corner about the virtues of unity
in Esperanto, a language he had learned from his father.
Investment Career
George Soros's journey into the world of finance traces back
to his early days as a clerk at Singer & Friedlander, a London-based
merchant bank, in 1954. Rising swiftly through the ranks, Soros honed his
skills in the arbitrage department, gaining invaluable experience. It was
during this period that a colleague's recommendation led him to make the
pivotal decision to move to New York City and join F.M. Mayer, a brokerage
house.
Arriving in New York in 1956, Soros immersed himself in the
world of finance as an arbitrage trader specializing in European stocks at F.M.
Mayer. His expertise in European markets became increasingly significant as
U.S. institutional investors showed growing interest in overseas investments,
driven by developments such as the formation of the Common Market.
While originally intending to work at Wertheim & Co. for
five years to save funds for philosophical studies in England, Soros's
trajectory shifted as he developed the theory of reflexivity during his time
there. Inspired by the ideas of his tutor Karl Popper, reflexivity posits that
market values are influenced not only by economic fundamentals but also by
participants' perceptions, leading to feedback loops that impact market
dynamics.
In 1969, Soros launched the Double Eagle hedge fund,
building on his earlier trading experiences and theories. With $4 million in
investors' capital, including his own contribution, the fund grew steadily,
laying the groundwork for what would become the Soros Fund. Over the years,
Soros's innovative approaches to trading and his application of reflexivity
theory propelled him to prominence in the financial world, marking the
beginning of a remarkable career in finance.
Biography of George Soros: From Refugee to Finance Titan
Founded Soros Fund Manager
In 1970, George Soros established Soros Fund Management and
assumed the role of chairman. Over the years, the firm saw a rotation of
notable figures in senior positions, including Jim Rogers, Stanley
Druckenmiller, Mark Schwartz, Keith Anderson, and Soros's own sons. However, by
1973, Soros faced perceived conflicts of interest that limited his ability to
effectively manage both the Double Eagle Fund and the newly established Soros
Fund. As a result, he resigned from the management of the Double Eagle Fund and
offered investors the option to transfer their investments to the Soros Fund or
remain with Arnhold and S. Bleichroeder.
Renamed the Quantum Fund, after the physical theory of
quantum mechanics, Soros's fund had grown substantially to $12 million by this
time, with only a small portion contributed by Soros himself. Alongside Jim
Rogers, Soros reinvested their returns from the fund, as well as a significant
portion of their 20% performance fees, thereby expanding their stake.
Despite facing challenges such as a 22% loss in 1981 and
substantial investor redemptions, the Quantum Fund continued to thrive. In July
2011, Soros made the decision to return funds from outside investors, valued at
$1 billion, and instead invested funds from his family fortune, totaling $24.5
billion. This move was prompted by changes in U.S. Securities and Exchange
Commission disclosure rules, which Soros believed would compromise his duty of
confidentiality to his investors. At that time, the fund had averaged over 20%
per year compound returns.
The Quantum Fund achieved remarkable success in 2013, making
$5.5 billion and reaffirming its status as the most successful hedge fund in
history. Since its inception in 1973, the fund has generated an impressive $40
billion. In 2015, the fund announced its intention to inject $300 million to
support the expansion of Fen Hotels, an Argentine hotel company. This
investment would facilitate the development of 5,000 rooms across various Latin
American countries over the following three years.
Political Career
Until the 2004 presidential election, George Soros had not
been a significant donor to U.S. political campaigns. However, during the
2003–2004 election cycle, he donated $23,581,000 to various 527 Groups aimed at
defeating President George W. Bush. Following Bush's reelection, Soros and
other donors established the Democracy Alliance, supporting progressive causes
and infrastructure in America. Soros continued his philanthropy by donating $35
million to New York state in 2009 for underprivileged children and contributing
to the Center for American Progress.
Soros's political involvement drew attention in subsequent
years, with reports questioning his role in movements like Occupy Wall Street,
which he denied funding. Nevertheless, Soros emerged as a significant supporter
of Democratic candidates, donating to super PACs backing President Barack
Obama's reelection and later supporting Hillary Clinton in the 2016
presidential race. He continued his political contributions, launching the Democracy
PAC for the 2020 election cycle and donating over $5 million to it by July
2019.
In recent years, Soros has focused on progressive criminal
justice reform, donating substantial sums to support candidates advocating for
reform in local district attorney elections. His contributions played a
significant role in the election of candidates like Larry Krasner in
Philadelphia and George Gascón in Los Angeles County. Soros's influence
extended to the 2022 United States elections, where he emerged as the country's
largest donor, contributing $128.5 million to support the Democratic Party.
Personal Life
George Soros's personal life reflects a journey marked by
marriages, philanthropic endeavors, and family connections. He married
Annaliese Witschak in 1960, with whom he had three children: Robert Daniel
Soros, Andrea Soros Colombel, and Jonathan Tivadar Soros. Each of his children
has made significant contributions to various fields, from education to
philanthropy and politics. Soros's second marriage was to Susan Weber in 1983,
resulting in two children: Alexander Soros and Gregory James Soros. Alexander
has notably become known for his philanthropic efforts focused on progressive
causes. Despite his family life, Soros has been candid about his childhood
fantasies of being a god, a sentiment he later reflected on, stating that he
does not believe in God. In 2013, Soros married Tamiko Bolton, and as of 2022,
he owned homes in Manhattan, The Hamptons, and Katonah, New York. Additionally,
in December 2023, Soros experienced a swatting incident during a period of
harassment targeting American political figures, highlighting the challenges he
faced beyond his professional and personal spheres.
A Philanthropic Legacy of Global Impact
George Soros's philanthropic efforts have left an indelible
mark on the world, with Forbes listing him as the 162nd richest person globally
in March 2020, with a net worth of $8.3 billion. Despite his wealth, Soros has
donated 64% of his original fortune, distributing over $15 billion through his
Open Society Foundations, which support causes such as justice, education,
public health, and independent media. His philanthropy dates back to the 1970s
when he funded black students' education in apartheid South Africa and
supported dissident movements in Eastern Europe. Soros's contributions extend
globally, primarily through the Open Society Foundations, which spend about
$500 million annually. Notable projects include aiding transitional and
emerging nations to become "open societies," supporting internet
infrastructure in Russia, eradicating poverty in Africa, and providing aid
during crises like the siege of Sarajevo. Soros's commitment to education is
evident in his donations to institutions like the Central European University
and Bard College, with recent pledges totaling billions of dollars.
Additionally, Soros continues to support racial justice groups, criminal
justice reform, and civic engagement initiatives, demonstrating his ongoing
dedication to creating positive social change.
Apart from his financial endeavors, Soros has been involved in sports ventures, such as attempting to buy the Washington Nationals baseball team in 2005 and acquiring a stake in English football club Manchester United in 2012. He has also been recognized for his contributions to the financial world, being inducted into Institutional Investors Alpha's Hedge Fund Manager Hall of Fame in 2008 and ranked number 1 in LCH Investments list of top 20 managers in 2014. Additionally, Soros has received honors for his advocacy of liberal democracy, being elected as an Honorary Fellow of the British Academy in 2017 and named Financial Times Person of the Year in 2018. In 2019, Soros was awarded the Ridenhour Prize for Courage, where he pledged to donate the prize money to support an online publication exposing political developments in his native Hungary.
