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Hedge fund guru Soros' fund trims tech stocks

NEW YORK: Hedge fund guru George Soros' flagship Quantum Fund LP has trimmed some holdings in high-flying technology stocks in recent weeks, containing losses to the fund amid the downdraft in the sector, said people dealing with the fund.

The Wall Street Journal reported Thursday that the Quantum Fund lost a total of about $600 million, or about 6 percent of Quantum's $10 billion in assets in the last three days. It cited a person familiar with the results.

Soros has cut positions in stocks like Qualcomm, the wireless communications maker, the Journal reported.

Quantum, managed by Soros' chief investment officer, has also filed to sell Internet stocks like EarthLink Network Inc., filings with the Securities & Exchange Commission show. A spokesman for Soros Fund Management declined to comment.

EarthLink fell 1-7/16 on Thursday to close at 43-1/4, well below its 52-week high of 99-3/8.

The best-known of the Soros funds, Quantum loaded up on technology stocks in the summer and fall of last year and autumn and then scaled back some of those holdings in December, said people dealing with the fund.

Quantum bought stocks such as South Korea's SK Telecom and Japan's NTT Mobile Communication Network.

Through another entity called Soros Private Equity Partners LLC, the hedge fund guru has also invested in several high-tech and Internet firms such as the Israeli firm Nexus Telocation Systems Ltd. and Internet retailer Bluefly Inc.

Nexus Telocation closed on Thursday at 4-3/8, up 19/32, close to its 52-week high of 4-7/16. Bluefly closed at 13-1/2, down 1/8 from Wednesday and below its 52-week high of 17-7/8.

Many hedge funds have invested in technology stocks in the past year to keep up with the stellar performance of market indexes like the Nasdaq 100, which is comprised mostly of technology stocks. The Nasdaq gained more than 85 percent last year, but has fallen sharply in the first days of trading this year. The Nasdaq composite dropped 3.88 percent on Thursday at 3,727.20, logging its second largest point decline ever of 150.34 points. The index is down 10 percent from last Monday's record closing high, which constitutes a correction according to analysts.

Soros gained fame in the early 1990s making more than $1 billion by betting against the British pound.-Reuters