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To: Saulamanca who wrote (54327)	6/15/2000 8:50:00 PM
From: UnBelievable	Read Replies (1) \| Respond to of 99985

Did He Say Whether He Was Long or Short Dollars?

To: Saulamanca who wrote (54327)	6/15/2000 9:20:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 99985

Jim, did he mention the current account at all? or private sector debt? those are imo the gravest dangers to the economy. compared to this, the gyrations of the NAZ are really a side-show. anyway, quite the diplomat i see. hb

To: Saulamanca who wrote (54327)	6/15/2000 11:19:00 PM
From: Tunica Albuginea	Respond to of 99985

MSNBC: Soros: Hedge funds just got too big msnbc.com Soros: Hedge funds just got too big Financier discusses Quantum?s losses, the U.S. economy and the current ?stockpickers? paradise? CNBC June 14 ? After a rather difficult start to the new millennium, one of Wall Street?s legendary investors has shifted gears. Billionaire financier George Soros said Thursday he is rolling his pared down Quantum Fund and Quantum Emerging Growth Fund into a single hedge fund. The Quantum Fund is down 20 percent for the year, in part because it got too unwieldy before recent redemptions. "WE HAVE been aware of the size problem, but you don?t know how big you are until you actually fall on your face,? Soros told CNBC Thursday. In a wide-ranging interview with the cable channel, Soros also spoke about broader economic issues. He said the markets in Europe and the U.S. ?are in a very substantial disequilibrium right now? and that ending the current correction could be a protracted process. As a result, it?s a ?stockpickers? paradise? at the moment for skillful investors. Soros said the biotech and telecom sectors offered particularly appealing investments. He wouldn?t say where his new fund planned to invest, but Soros did say it will make big macro bets, engage in arbitrage and go long and short on individual stocks. The fund will debut July 1 with assets of around $6-6.5 billion, having suffered redemptions of up to $3 billion, less than some had feared. ?I?m trying to achieve a good return on my assets, and I want to create an organization that will outlast me.? ? GEORGE SOROS chairman, Quantum Funds Soros said that roughly half the assets of the new fund would be invested in macro and arbitrage plays and half in stock-picking strategies but that an increasing proportion of his $11 billion under management would be allocated to private equity and real estate. The new funds also represent a change in management style. Instead of putting a lot of authority in the hands of a few veteran managers, Quantum plans to ?incubate? a number of younger managers and spread out the management duties. ?I?m trying to achieve a good return on my assets and want to create an organization that will outlast me...I want an organization that can function without me,? Soros told CNBC. The revamped structure is intended to be less risky than in the old high-flying days of the man credited with driving the British pound out of the European exchange rate mechanism. ?In my old age I have become somewhat conservative,? Soros said. ?But we will probably have a more mediocre performance because of the multi-manager structure, because to some extent managers can cancel each other out.? Hungarian-born Soros in April announced he was overhauling his Quantum Fund ? then the world?s largest ? as well as the Quota Fund after losses related to investments in Europe?s single currency and positions in volatile technology stocks. Soros said redemptions had totaled up to $3 billion following the changes, less than the estimates of up to $6 billion cited in earlier newspaper reports. Soros said total assets under management will be about $11 billion, divided among four funds, including two specializing in private equity and real estate. Soros, 69, said his son, Robert Soros will begin to take a more active role in the organization. Reuters contributed to this story. =========================================================== Message #54327 from Jim Bryan at Jun 15, 2000 8:43 PM ET Heinz, He said the markets are in a substantial disequilibrium right now. We`ve had a fantastic boom in the new economy and internet stocks then a break. He never said bubble, he called it a boom. <G> He said the internet and the new economy stocks could have a 2/3 retracement of the declines then go into the protracted decline. Not the S&P though. If the economy slows down the old economy stocks might do quite well. With biotech offering opportunities. This may well be a stock pickers paradise. It does look hopeful for a soft landing. As long as productivity gains can be maintained while volumes are reduced, then he thinks we will have soft landing. If productivity declines we may have a lag effect where inflationary pressures come in while the economy is slowing, then the Fed will be obliged to keep raising interest rates and we could have a hard landing. --Jim