Soros hires BlackRock alumnus

By Svea Herbst-Bayliss

BOSTON (Reuters) - George Soros hired money management firm BlackRock Inc's co-founder Keith Anderson as his hedge fund's chief investment officer, selecting the fourth person for the position in eight years.

Anderson, who recently stepped down after nearly two decades with BlackRock (BLK.N), will succeed George Soros' son Robert in the job. He will start work on February 20, Robert and his brother Jonathan wrote to shareholders.

"Keith brings more than twenty-five years of experience managing investment portfolios and investment professionals," the brothers wrote, adding that Anderson will be in charge of all investment activities at Soros Fund Management.

Soros Fund Management established its reputation as one of the world's best hedge fund firms when it earned $1 billion in a bet against the British pound in the early 1990s and often sparred with central bankers and government officials. Like most hedge funds, the firm is privately held.

Since 2000, the New York-based firm, has kept a lower profile. After suffering heavy losses and parting ways with top traders, George Soros's flagship fund was renamed the Quantum Endowment Fund and adopted more conservative strategies.

The fund, which invests $17 billion, returned 32 percent last year, handily beating the average hedge fund which gained 11.6 percent, according to the Hennessee Group.

But returns have not always been that strong in recent years.

Soros suffered heavy turnover it its top ranks since its Hungarian-born founder, now 77, began searching for a stock picker to replace him roughly eight years ago in order to spend more time on philanthropic pursuits.

Unhappy with performance soon after picking his first new chief executive, William Stack, in 2001, however, Soros soon took more control again and in 2004 gave new power to his two sons, giving each one the title of deputy chairman.

Robert, who studied literature in college, was then promoted to chief investment officer but had considered leaving the job for some time before stepping down this summer.

Robert Soros followed Jacob Goldfield, a former Goldman Sachs partner who succeeded Robert Bishop, an alumnus from hedge fund Maverick Capital Ltd., in the job.

George Soros uses some of his investment returns to support his favourite causes including economic programs and education.