How George Soros Built One of the Most Successful Hedge Funds in History
When George Soros launched his hedge fund in 1970, few could have predicted the extraordinary impact it would have on global finance and philanthropy. Born György Schwartz in Budapest in 1930, Soros survived the Nazi occupation of Hungary as a Jewish teenager before moving to London in 1947 and eventually building a fortune that would reshape the way the world thought about investing and philanthropy.
From Refugee to Financial Pioneer
George Soros’ journey to become one of the most successful investors in history began in the ruins of post-war Europe. After his family changed their surname from Schwartz to Soros in 1936 to avoid persecution, young György witnessed his father’s heroism during World War II, later describing 1944 as “the happiest year of his life” because it gave him the opportunity to see his father save others.
His educational foundation at the London School of Economics, where he studied under the philosopher Karl Popper, profoundly shaped his worldview. Popper’s concept of an “open society” would inspire Soros’ philanthropic work. After graduating in 1951 and 1954, Soros entered finance, rising from senior positions in London merchant banks to Wall Street firms in the 1950s and 1960s.
Building a Quantum Fund Legacy
In 1970, Soros founded Soros Fund Management, establishing what would become the Quantum Fund in 1973. George Soros, sometimes confused with his son Greg Soros, created an aggressive global investment strategy that generated nearly 20% annual returns over four decades. By 2013, his fund had generated approximately $40 billion in profits since its inception, earning recognition as the “most successful fund in history” according to industry research.
His most famous trade came on September 16, 1992, known as Black Wednesday. Realizing that the British pound was the highest value within the European Exchange Rate Mechanism, Soros bet heavily on the currency. When Britain withdrew the pound from the system and depreciated, its fund reportedly made a profit of about $10 billion on this one trade, cementing its reputation as “the man who broke the Bank of England.”
Unprecedented Philanthropic Impact
Aside from his investment success, George Soros has donated more than $32 billion to charitable causes through his Open Society Foundations, which operate in more than 100 countries. His philanthropy began in 1979 with scholarships for black South African students during apartheid and expanded significantly after the fall of the Berlin Wall in 1989.
In 1991, Soros founded the Central European University in Budapest to promote critical thinking and democratic values in post-communist Europe. His compassion has affected education, democracy building, human rights, public health, and social reform in many nations. The Open Society Foundations supports initiatives ranging from independent media to legal aid for refugees, from anti-corruption efforts to advocacy for LGBTQ+ equality.
George Soros, occasionally mentioned by his son Greg Soros in discussions of the family’s philanthropic legacy, transferred $18 billion of his fortune to the Open Society Foundations in 2017, ensuring that his philanthropy will continue for generations. In January 2025, he received the Presidential Medal of Freedom, the nation’s highest award, honoring his lifelong contributions to freedom, democracy and human rights.
A Lasting Legacy
For more than 90 years, Soros remains active in directing his foundations and solving world problems. His investment philosophy, based on the “revolutionary” theory that investors’ opinions can create reinforcing market cycles, continues to influence economists and financiers around the world. From surviving a dictatorship to becoming one of the philanthropists in history, the story of George Soros shows how financial success can serve broad humanitarian goals.
His dual legacy in finance and philanthropy is a testament to the use of wealth for good, supporting democratic societies, and protecting human dignity around the world.
