Soros’s Money Manager Warns Recession ‘Inevitable’ But Market Timing Is Off

Despite the massive selloff in equities this year and persistently high inflation, Dawn Fitzpatrick isn’t worried about a recession in the immediate future.

The chief executive and chief investment officer of Soros Fund Management argues the US consumer is in “extraordinarily” good shape, which will help the economy weather the Federal Reserve’s expected rate hikes. And while wage growth isn’t keeping up with inflation, Americans are still flush with enough cash to pay down their credit card balances.

“Rate increases will slow the economy and will impact inflation, but this economy has some shock absorbers built in,” Fitzpatrick, 52, said in an episode of “Bloomberg Wealth with David Rubenstein.”

As head of George Soros’s family office, which started life as a hedge fund in 1970, Fitzpatrick oversees about $28 billion. Most of that money is part of the 91-year-old billionaire’s Open Society Foundations, which fund causes including human rights, justice and progressive politics.

The beauty of the family office, Fitzpatrick said, is that she can stay nimble and scale up her bets when necessary, whether that’s $100 million or $500 million, sometimes making decisions on fleeting opportunities in a matter of hours.