The Highest Profile Hedge Fund Launch in 2016

 

Bloomberg News reported that Scott Bessent has officially launched one of the largest hedge funds. Over the last couple of years, Scott Bessent has been setting up Key Square Group. It was launched with over $2 billion in assets. It is estimated that it will be worth $4.5 billion after its first quarter. This is significant because this will make it in the third-largest launch for a hedge fund in history. In the year 2006, Convexity Capital launched a hedge fund that had more than $6 billion in assets. The hedge fund set up by Scott Bessent is significant.

Scott Bessent is well known because of his work with George Soros. Bessent has managed Soros’ $30 billion fortune over the last couple of years. He is widely consider to be one of Soros’ protégé.

Scott Bessent went to Yale University. He graduated from there with honors in the year 1984. Right after graduating, it was his goal to get a job at Yale Daily News as their editor. Unfortunately, he was not able to attain this goal because the position was filled by someone else. Instead, he took an internship with the famous money manager Jim Rogers. Then after graduation, he began working with Brown Brothers. While working with that company, he mostly did equity research, which was a job he ended up hating. From there, he helped to manage money for a well off Middle Eastern family. His next career move took him to Kynikos Associates. That was a hedge fund that was founded by Jim Chanos.

Scott Bessent was interviewed by writer Steven Drobny. Drobny wrote the book, Inside the House of Money. In that book, Bessent mentions that managing hedge funds is a lot like journalism. He says that you gather information and then you make a decision. In journalism, you write a story with an angle. In hedge fund management, you make an investment in the same way. Scott Bessent also returned to his alma mater as a professor when he taught the class “Hedge Funds: History, Theory, and Practice.”

In 1991, Scott Bessent began his career working with George Soros. He was with Soros Fund Management until 2000. From there, he went out on his own. He was able to quickly raise capitol for his own hedge fund called Bessent Capital. Things did not go as Bessent had hoped and he ended up losing a significant percentage of his European stock fund within just the first six months of the year 2001. Then investors began to back out, and so Bessent returned to macro investing.

In September 2001, he was again recruited by Soros Fund Management. It was during that time that he was beginning to form Key Square Group, which is a macro fund. Now that fund has been officially launched and is in line to become the third largest hedge fund launched in history. This George Soros’ protégé is a definitely going to be responsible for the highest profile launched in 2016.