Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Soros faces $20m legal claim from former manager

Soros faces $20m legal claim from former manager

Renowned investor George Soros (pictured) is being sued by a former employee, who is claiming more than $20 million (£11.7 million) in fees and wages after an eight-month stint at Soros Fund Management.

Aaron Cowen, a former hedge fund manager at SAC Capital, has filed a complaint in New York’s Supreme Court against Soros Fund Management (SFM), according to the Telegraph

He is reported to have lodged a claim demanding $19.5 million in unpaid 'wages, bonuses, wage supplements, and compensation bargained for, earned and belonging [to him]'. He has also seeking 'at least $3 million', which he claims was lost as a result of Soros’ firm liquidating his portfolio when he left, the Telegraph reported.

According to the filing, Cowen said he started at Soros Fund Management with a basic salary of $500,000 per year, with the ability to earn performance fees from his fund of 12.5%. He was given $500 million to run from the start and claims he wa promised this would rise to $1 billion within months.

He claims he was successful during his time at the firm, generating returns while others in the group struggled and received praise from Soros himself at a gathering at the Hamptons. However a week later, the filing noted that deputy chairman Jonathan Soros notified Cowen that his employment at SFM was terminated with no reason provided. He was handed with a termination letter and a $250,000 separation payment.

Cowen said he was not allowed to liquidate his own fund and SFM chose to do this for him instead, selling stocks at a point that he claims was not advantageous to do so. He claims the process was 'illegal' and 'fraudulent'.”

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sam Vecht: the best opportunities in frontier markets

Sam Vecht: the best opportunities in frontier markets

Blackrock's Vecht evaluates frontier markets and explains where he sees the opportunities

Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter