Feeds

Tech stocks take toll on tycoon Soros

Capital can be a cruel mistress

  • alert
  • submit to reddit

High performance access to file storage

One of the world's foremost investment gurus, George Soros, has lost billions of dollars investing in tech stocks and is reorganising his business as a result. According to a report in The Guardian newspaper this weekend, the tycoon's Quantum Fund took a severe beating thanks to "misguided investments in technology companies" - falling in value to $8 billion, from $10.4 billion in December 1999. Quantum is a hedge fund, which effectively means that its managers bet on the outcome of investing in companies and markets. The unpredictable nature of IT stocks has taken its toll on this leading light of the traditional investment community, with as much as $5 billion thought to have been lost in a single month. Recent Nasdaq turbulence is thought to have been a particular problem. Soros is now going to break up his huge hedge fund operation and two of his leading managers - Stanley Druckenmiller and Nick Roditi - are set to leave. Druckenmiller is said to have been badly bitten by Nasdaq and is quoted in The Guardian as saying: "I screwed up. I should have got out in February." Another investment guru speaking out against Internet-related investments this weekend was America's richest investor, Warren Buffet, who runs the Berkshire Hathaway investment and insurance company. Interestingly enough, Buffet has steered clear of the tech-stock investment bandwagon, but 1999 was his company's poorest years for returns. Buffet praised the Internet as an information resource but likened it to a chain letter as far as investment was concerned. "For society the Internet's a wonderful thing - but for capitalists it's probably a net negative," he said. "If you are very early in a chain letter, you can make money, but there's no money created." So, it looks as though the thousands of anti-capitalism demonstrators who rioted over the weekend have found a curious ally in their campaign to bring down the multi-national investors that control global markets and cream off millions for themselves. Despite their best efforts, it remains highly unlikely that the protestors will achieve anything other than generating a bit more work for the folk that clean up after them and giving hard pressed police officers a chance to earn a bit of over-time. Capitalism itself, though, has been the undoing (in part, at any rate) of two of the very people the rioters are targeting their actions at. Funny thing, irony. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.