Soros warns of hedge fund failures

Pakistan News.Net
Sunday 16th November, 2008

George Soros, the chairman of Soros Fund Management, which creates hedge funds, has warned that high-risk hedge funds will be wiped out by the financial crisis.

Testifying before a US Oversight and Government Reform Committee hearing on the financial crisis, Mr Soros, who reportedly earns more than $100,000 an hour, said the large hedge funds would lose up to 75 percent of their assets.

Mr Soros, whose own hedge fund has been flat for the year, said he had fully anticipated “the worst financial crisis since the 1930s.'

He said: 'Frankly, what has happened in the last eight weeks has exceeded my expectations.'

Mr Soros said the current bubble should have been kept within tolerable bounds, and said the government should be responsible for preventing future bubbles from becoming too big.

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