Another successful trader…

George Soros is a Hungarian-born American investor/trader. He is the chairman of Soros Fund Management. He is also known as “The Man Who Broker the Bank of England” because of his famous short sale of $US 10 billion worth of pounds. He then netted $1 billion during the 1992 Black Wednesday UK currency crisis. Soros’s trade forced the U.K. to withdraw from the European Exchange Rate Mechanism (ERM), which was an unheard of act so far. There were many other traders, who copied the famous Soros trade that month. Indeed, far more traders recognized the unsustainability of the ERM than those that saw the dangers of the subprime mortgage market.
Actually, only a few people know that it was actually Stanley Druckenmiller another famous trader, who came up with the trade idea in the first place. But it was Soros’ agreeing with it that led to the large trade itself. Still, it was Soros’ final word and the courage to take the trade and it was not a small trade. Indeed, it was a catalyst that introduced in a new currency regime for UK. This level of impact from a single trade cannot be yet matched from another single trade.
 
I would like to finish off this article with a saying from Paul Krugman about George Soros:
 
“Nobody who has read a business magazine in the last few years can be unaware that these days there really are investors who not only move money in anticipation of a currency crisis, but actually do their best to trigger that crisis for fun and profit. These new actors on the scene do not yet have a standard name; my proposed term is Soroi”
(Visited 3,028 time, 1 visit today)