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 Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter