Soros Names Bessent as New CIO to Run $25 Billion Firm

(September 20, 2011) — Ex-Soros trader Scott Bessent has returned to the $25 billion firm as its chief investment officer.

He succeeds Keith Anderson, who left the firm in July, as his performance during the previous 18 months lagged behind his peers, Bloomberg reported.

“I am pleased to announce that Scott Bessent will join Soros Fund Management LLC,” Soros wrote today in a letter originally obtained by Bloomberg, describing the transition to a family office. According to the letter, Jonathan Soros will leave the money-management arm to be chairman of the foundation. “Scott has been a well known investor in the macro space for two decades,” according to the letter sent to investors by Soros’s sons, Robert Soros and Jonathan Soros, who have been top executives of the firm.

As CIO, Bessent will be responsible for asset allocation, managing internal teams, and choosing and monitoring external money managers. He will also be in charge of risk management, putting on hedging, and making tactual investments.

Bessent obtained his bachelor’s degree in 1984 from Yale University. Even though he originally wanted to be a journalist, he started his career in finance working at Brown Brothers Harriman & Co., and later for the Olayan Group. He subsequently worked for Jim Chanos’s Kynikos Associates Ltd., a short-only fund based in New York. From 1991 to 2000, he worked at Soros Fund Management, running Soros’ European fund by the age of 29. Most recently, Bessent worked at Protege Partners, an investment firm that seeds upstart hedge funds.

Soros’ move to name a new CIO comes about a month after the fund decided to return money to outside investors, converting itself into a family office. In July, after more than 40 years running hedge funds, Soros said that Washington’s increased oversight of the once unregulated industry was a primary reason behind his decision to cease running external cash. Soros joined an expanding list of fund managers who have recently reconfigured their businesses as new regulations have become more stringent. Earlier this year, for example, Carl Icahn also returned money to outside investors.