While Bessent’s exact financial status remains somewhat of a mystery, it’s no secret that he hasn’t made the billionaire cut on lists by Bloomberg or Forbes like some of his peers, Ray Dalio and Ken Griffin. But rest assured, we’ll get some hints about his wealth as he goes through the process of divesting certain holdings to steer clear of conflicts of interest as the incoming Treasury chief.
Reaching out to Key Square led to no immediate comments about the nature of these assets or any plans for divestment. However, examining Bessent’s career trajectory and sharp financial maneuvers provides a glimpse into how he amassed his fortune.
Bessent, who hails from South Carolina and is a Yale alum, kicked off his career as a securities analyst and options trader within a Saudi family’s investment branch, reports the Wall Street Journal. His journey included an internship with Jim Rogers and a stint with short-seller James Chanos, before joining Soros Fund Management in 1991.
His breakout moment came not long after when he was stationed in the firm’s London office. There, Bessent played a key role in orchestrating the infamous short against the British pound in 1992, securing Soros a whopping $1 billion profit. This event, known in the UK as “Black Wednesday,” resulted from the pound being untethered from European currencies.
After his tenure with Soros, Bessent advanced to become a senior partner at Protege Partners and eventually started his own firm, though he wound up returning clients’ funds in 2005, as detailed by the Journal.
In 2011, Bessent re-emerged at Soros, taking on the mantle of chief investment officer. During this second chapter, he delivered approximately $10 billion in profits for Soros, as noted by Bloomberg. Among his successful strategies was a bet against Japan’s yen in 2013, generating a $1 billion payday.
Bessent ventured out once more in 2015 to create Key Square. There, he dabbled in global macroeconomic bets, initially raising $4.5 billion, including $2 billion sourced from Soros. Key Square’s main fund saw an impressive 13% return in 2016 after Bessent doubled down on the British pound post-Brexit, according to Reuters.
Not only did Bessent foresee the pound’s tumble, but he also accurately predicted the uplift in U.S. stocks and the dollar following President Trump’s election in 2016. Though returns varied from 2017 through 2022, they climbed back into double digits for 2023 and 2024, Reuters notes.
In 2024, repeating his successful 2016 strategy, Bessent banked on a Trump victory to bolster U.S. stocks and the dollar — a move that proved profitable for Key Square. However, assets under management shrank to $577 million by the end of 2023 from a high of $5.1 billion in 2017, according to the report.
After an agreed-upon retraction of his investment, Soros withdrew most of his money from Key Square in 2018, and Bessent no longer manages any of Soros’ funds, insiders shared with Reuters.
Despite remaining mum on exposure to recent coverage, Key Square did not provide immediate comments regarding the Reuters piece.
Wall Street’s reception of Bessent’s Treasury Department nomination has been favorable, thanks largely to his solid track record in finance. However, what’s been most crucial is the trust he’s secured from the president-elect.
“Scott is widely regarded as one of the world’s leading International Investors and Geopolitical and Economic Strategists,” Trump asserted in a social media post on Friday. “Scott’s journey embodies the American Dream.”
