Feeds

Tech stocks take toll on tycoon Soros

Capital can be a cruel mistress

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.