How Donald Trump Cost George Soros $1B
Soros made the wrong call on how stock market would respond after election
By Jenn Gidman,  Newser Staff
Posted Jan 13, 2017 11:50 AM CST
In this Sept. 27, 2015, file photo, George Soros, chairman of Soros Fund Management, talks during a television interview for CNN at the Clinton Global Initiative in New York.   (AP Photo/Mark Lennihan, file)

(Newser) – George Soros literally bet against Donald Trump after the election and lost. The Wall Street Journal reveals the hedge fund manager and Hillary Clinton supporter misread what the stock market was going to do after the election and said goodbye to almost $1 billion. Soros, who'd already been leery of the market before Nov. 8, became more so after Trump won. But as Business Insider notes, the Dow Jones is up almost 10% since Election Day, while all three main US stock indexes (the Dow, plus the S&P 500 and Nasdaq) have set record highs, meaning Soros' bearish money-managing approach led his personal portfolio to take a huge dive (though he did stem the hemorrhaging and get out of many of his positions before 2016 came to a close). Soros Fund Management's portfolio overall did better, helping the firm claim a 5% gain on the year.

Meanwhile, one-time Soros protege Stanley Druckenmiller, who served as Soros' deputy for years at the Quantum Fund, took a different tack, theorizing that if Hillary Clinton won, stocks would rise, then fall, while the opposite would happen if Donald Trump pulled off a win. Druckenmiller obviously proved right, and because he had dumped his bearish positions the night of the election, his firm Duquesne Family Office LLC boasted gains of 10% in 2016. It doesn't appear as if Druckenmiller jumped on the Trump train for any reason other than economic potential: He had previously said Trump had an "unstable personality" and even indicated he might not vote in the election; a few days after the election, he told CNBC he didn't vote for Trump or Clinton. (Soros once said he'd invest $1 billion in Ukraine.)

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