Speaking to Bloomberg Television at the World Economic Forum in Davos, Switzerland, George Soros cast doubt on hedge funds’ future ability to do better than the broader markets. “Since hedge funds are now a dominant force in the market, they can’t, as a group, outperform the market,” Soros said. The 82-year old added that managers’ and investors’ risk aversion will only make things worse. “Outperforming the market with low volatility on a consistent basis is an impossibility,” Soros said. “I outperformed the market for 30-odd years, but not with low volatility.” [FINalternatives, Bloomberg]

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Comments (22)

  1. Posted by Hobbes | January 30, 2013 at 3:14 PM

    FT Alphaville Headline: "Famed alpha generator admits to getting lucky on beta."

  2. Posted by Sean | January 30, 2013 at 3:24 PM

    "And I had to walk 15 miles uphill to work each day!"

  3. Posted by Guest | January 30, 2013 at 3:29 PM


    -John Paulson

  4. Posted by El Guesto | January 30, 2013 at 3:30 PM

    So back to pimpin hoes for uncorrelated returns.

  5. Posted by George S. | January 30, 2013 at 3:51 PM

    And kids were kids, and sat at the appropriate table.

  6. Posted by hardwell | January 30, 2013 at 3:58 PM

    "europe has 3 days left" – soros

  7. Posted by Alt_EST | January 30, 2013 at 4:24 PM

    …and I dated them, and made insane promises to them, and threw lamps at them

  8. Posted by St. Copious | January 30, 2013 at 4:31 PM

    Actually I think his point is the exact opposite (i.e. you're the one who has to walk 15 miles to work).

  9. Posted by Chris H. | January 30, 2013 at 4:33 PM

    George is nostalgic for 20 years ago, when his girlfriend wasn’t born yet.

    Chris: So George, what’s with the housekey with a ribbon tied around it, the industrial sized tube of Ben Gay, and the bottle of bubbly?
    George: You are not Adriana. Ver is she?
    Chris: What is that smell, did you bathe in Old Spice? Why don’t you have a seat over there…
    George: I do not take ze lip from you, dumkof, bring me ze girl!

  10. Posted by Guest | January 30, 2013 at 4:34 PM

    True but irrelevant. A mediocre manager can get rich off the AUM fees. The only question is how long it takes for LPs to figure this out and pay for alpha only. So far, so good.

  11. Posted by Mrs_Slocombe | January 30, 2013 at 4:59 PM

    Gasparino called, he’s indifferent to Soros’ 30-year winning investment strategy but wants to know his secret for that outstanding fucking head of hair.

  12. Posted by Indian HFA | January 30, 2013 at 5:00 PM

    Volatility… heh heh, that's cute.

  13. Posted by small fund | January 30, 2013 at 5:03 PM

    Still have to raise the capital, which is a skill itself you smarmy fuck.
    Man. Fees can often approximate overhead etc.

  14. Posted by Jon Shazner | January 30, 2013 at 5:21 PM

    Don't you mean vega.

  15. Posted by Chaz Inner Thoughts | January 30, 2013 at 5:34 PM

    Also, open to swapping ghabba ghoul for hurka, meet him in the Equinox steam room, light up a cigar so he knows its you.

  16. Posted by Fluffing Quant | January 30, 2013 at 5:50 PM

    Unrelated, but from the DealBook piece about no more brickbreaker:

    "Richard B. Handler, the chief executive of Jefferies, is among those who will no doubt be glad to hear that all is not lost for BrickBreaker. For years, Mr. Handler was known to play the game in elevators and between meetings."

    Guess he handles the balls as well.

  17. Posted by Guest | January 30, 2013 at 5:56 PM

    2% can approximate overhead? Kind of depends on your definition of overhead, no? Regardless, that's your problem. ETFs and index funds charge 10% of that and I'm pretty sure they aren't mostly operating at a loss. (But they are mostly outperforming hedge funds, as an asset class, after fees).

    LPs who pay one cent in AUM fees for anything over a billion or two: Idiots.

  18. Posted by Dick Handler | January 30, 2013 at 6:44 PM

    That's why they pay me the big bucks – literally.

  19. Posted by commods | January 30, 2013 at 7:01 PM

    It appears that this cat actually has higher net worth than lloyd based on shares ownership.

  20. Posted by Dr. Evil | January 31, 2013 at 7:29 AM

    The pound is overvalued and I'll make ONE BILLION DOLLARS, BUAHAHAHA, MUAHAHAHA, HAAAHAHAHA

    your move Dr. Hatdwell

  21. Posted by G. Soros | January 31, 2013 at 4:28 PM

    In addition to outperforming the markets for thirty years I would also like to mention that I get mad gash.

  22. Posted by sohbet | July 31, 2013 at 4:20 AM

    officers to investigate Blackstone's fishy financial transactions, but they wound up giving them