Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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 Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter