Quantum Fund evolved from Double Eagle Fund. The Double Eagle Fund was funded by Soros and Jim? Rogers was founded in 1969 with a capital of USD 4 million. 1973 was renamed Soros fund with a capital of about120,000 USD. 1979, Soros renamed the company Quantum Company. The fund was established in new york, and its investors are all non-American foreign investors, thus evading the supervision of the US Securities and Exchange Commission. Quantum funds invest in commodities, foreign exchange, stocks and bonds, and make extensive use of financial derivatives and leveraged financing to engage in all-round international financial operations. Soros, with his extraordinary analytical ability and courage, guided the quantum fund to grow and develop again and again in the world financial market. He has accurately predicted the extraordinary growth potential of an industry and a company for many times, and thus obtained extraordinary returns in the rising process of these stocks. Even in the bear market where the market fell, Soros made a lot of money with his superb short-selling skills. After less than 30 years of operation, by the end of 1997, the quantum fund has grown into a giant fund with total assets of nearly 6 billion US dollars. By the end of 1996, the 10000 injected by Quantum Fund had increased to $300 million, an increase of 30,000 times.
Although the quantum fund has only $6 billion in assets, it has become a decisive force in the international financial market because it can obtain the investment effect equivalent to tens of billions or even hundreds of billions of funds through leveraged financing and other means when needed. Soros and his quantum fund were directly responsible for several serious currency crises in the 1990s.
In Europe, the pound crisis and Italian lira crisis. At the beginning of 1990s, in order to cooperate with the linked exchange rate in Europe, the pound exchange rate was artificially fixed at a high level, which triggered the attack of international currency speculators. Quantum Fund took the lead in launching an attack, selling pounds on a large scale in the market and buying German marks. Although the Bank of England vigorously threw out the Deutsche Mark to buy the pound by raising interest rates, it was defeated by the attack of Quantum Fund, and the pound was forced to withdraw from the European currency exchange rate system and float freely. In just 1 month, the exchange rate of the pound fell by 20%, and the quantum fund made huge gains of hundreds of millions of dollars in this pound crisis. Not long after that, the Italian lira suffered the same fate, and the Quantum Fund also played the leading role.
In the United States, Mexico financial crisis. 1994 Soros quantum fund attacked Mexican peso. Before 1994, the healthy growth of Mexico's economy was based on excessive dependence on short-and medium-term foreign loans. In order to control domestic inflation, the peso exchange rate is overvalued and pegged to the US dollar. The peso attack launched by Quantum Fund made Mexico's foreign exchange reserves exhausted in a short time, so it had to abandon its peg to the US dollar and float freely, which led to the collapse of the Mexican peso and the domestic stock market. Quantum Fund made a big profit in this crisis.
In Asia, the financial crisis in Southeast Asia began with 1997. Mexico, Thailand, Malaysia, South Korea and many other Southeast Asian countries, such as 1994, have long relied on short-term and medium-term foreign debts to maintain the balance of international payments, with high exchange rates, and most of them maintain fixed or linked exchange rates with the US dollar or a basket of currencies, which provides a good opportunity for international speculative funds. Quantum fund played the role of sniper, starting with a large number of short selling of Thai baht, forcing Thailand to abandon its long-term fixed exchange rate pegged to the US dollar and float freely, thus triggering an unprecedented crisis in Thailand's financial market. The crisis quickly spread to all countries and regions in Southeast Asia where currencies are freely convertible, forcing all major currencies in Southeast Asia to depreciate sharply in a short time. The collapse of the monetary system and stock market in Southeast Asian countries, as well as the huge foreign investment pressure and domestic inflation brought about by it, cast a shadow over the economic development of this region.
In the past 3 1 year and a half, the average rate of return of quantum funds is as high as 30%, and this is the glory of quantum funds. However, since 1998, investment mistakes have caused huge losses to the quantum fund. First, Soros misjudged the 1998 Russian debt crisis and the trend of the Japanese yen exchange rate, which caused huge losses to the Quantum Fund, and then the online stocks that invested in US stocks also fell sharply. At this point, Soros's quantum fund losses totaled nearly $5 billion, and the quantum fund suffered heavy losses. On April 28th, 2000, Soros had to announce the closure of his two funds-Quantum Fund and Quota Fund, and fund managers druckenmiller and Roditi "dismissed". The world-famous hedge fund Quantum Fund has come to an end. At the same time, Soros announced that he would transfer some assets of the fund to the newly established "Quantum Endowment Fund" to continue its operation; He emphasized that the "Quantum Endowment Fund" will change its investment strategy and mainly engage in arbitrage trading with low risk and low return.