CNBC's Robert Frank reports managing one's family money has become very popular with hedge fund billionaires.
For hundreds of years, family offices have been the financial equivalent of social registers—small, musty preserves of the rich that have little impact on the real world.
But now, due to a giant regulatory loophole, family offices are becoming major players in financial markets. A string of billionaire hedge funders—including George Soros, Carl Icahn, and Stanley Druckenmiller—have all transformed their hedge funds into family offices managing billions of dollars. SAC, the giant hedge fund run by Steve Cohen, could become next in line, as the fund grapples with redemptions and government investigations…. People close to SAC say the company has no plans to become a family office…..
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