Keep pulling the thread on Dawn Fitzpatrick.
Upon analysis, Dawn Fitzpatrick found that Soros Fund Management's portfolio of external managers was generating zero aggregate excess return (alpha) after accounting for market beta.
Soros Fund Management, under the leadership of CIO Dawn Fitzpatrick, manages $25 billion in assets for the Soros family and its philanthropic foundations.
During the 2008 financial crisis, Dawn Fitzpatrick made the decision to pull O'Connor's assets from multiple prime brokers, including its parent company UBS, to protect client capital.
Upon her arrival as CIO, Dawn Fitzpatrick assessed the Soros Fund Management portfolio as being over-diversified and lacking sufficient concentrated, large-scale investments.
Soros Fund Management has established a long-term neutral risk level for its portfolio that is equivalent to a 60/40 stock/bond portfolio.
Soros Fund Management has shifted its public markets allocation from a 50/50 internal/external split to approximately 75% internal and 25% external under Dawn Fitzpatrick's leadership.
Soros Fund Management's internal managers have generated a 6% excess return year-to-date, normalized to a 5% volatility.
Soros Fund Management can borrow against its public equity portfolio at a rate of the Federal Funds Rate plus 20 basis points to apply leverage to its private credit investments.
Soros Fund Management has grown its internal private credit portfolio from less than 2% to approximately 8% of total assets over the last 15 months.
Dawn Fitzpatrick expects Soros Fund Management's internal private credit allocation to double from its current 8% level over the next 12 to 24 months.
A key strategic initiative at Soros Fund Management has been to integrate its public and private market investment teams, breaking down traditional organizational silos.
Soros Fund Management is currently positioned with a lower risk profile than its long-term strategic target due to the belief that the market is in a late-cycle phase.