(Repeats story that first ran on Monday with no changes to
By Karen Freifeld
NEW YORK, July 7 A former portfolio manager at
Soros Fund Management sued the hedge fund firm founded by
billionaire George Soros for nearly $20 million, accusing it of
reneging on promises to pay him performance and other fees.
Aaron Cowen was employed by Soros Fund Management, which
manages Soros' money, from November 2010 through July 2011,
according to the lawsuit, filed July 3 in New York state court
Cowen claims he was fired without cause, that he never
received performance and management fees due him, and that the
firm's refusal to pay and provide his track record has hampered
his ability to raise capital to start a new fund.
"I don't know why you were let go," the lawsuit quotes Soros
as telling Cowen days after his termination. "You were doing
Soros Fund Management did not immediately respond to a
request for comment, nor did George Soros.
Cowen worked as chief investment officer and portfolio
manager at SAC Capital Advisors before joining Soros's firm.
He initially managed a securities portfolio with $500
million of assets for Soros, and was promised a base salary of
$500,000, plus performance and other fees, according to the
Cowen generated $34 million between January and July 29,
2011, when he was terminated, earning him a fee of $3.9 million,
the lawsuit said. His ideas also generated $30 million in
revenues in Soros' chief investment officer's book, earning him
another $1.5 million, it said.
In total, Cowen claims he is owed some $20 million, including
more than $11 million in pipeline performance fees he would have
earned up to April 2012, some $4 million more in 2011
performance fees, $2 million in management fees and at least $3
million in compensatory damages from the liquidation of his
portfolio after his departure.
After he left, the firm cherry picked his portfolio for its
most profitable positions, which were moved ito its funds, and
sold off the remaining positions to his detriment, according to
Cowen sued for breach of contract, fraud, interference with
his contract following termination, and labor law violations.
The case is Aaron Cowen v Soros Fund Management, New York
State Supreme Court (Manhattan), No. 652055/2014.
(Reporting By Karen Freifeld, editing by Andrew Hay)