The Hermitage Fund, which served as a significant vehicle for foreign investment in Russia, grew to manage $4.5 billion in assets under the guidance of Bill Browder. His career shifted from high-stakes proprietary trading at Salomon Brothers to advocacy, ultimately centering on the development of international legal frameworks designed to hold human rights violators accountable for their actions.
Professional Background
Born in 1964 in Princeton, New Jersey, William Felix Browder was raised in Chicago and attended the University of Colorado Boulder before graduating from the University of Chicago with a degree in economics. He completed an MBA at the Stanford Graduate School of Business in 1989. His early career included roles at the Boston Consulting Group in London and Maxwell Communication Corporation, followed by a tenure managing Russian proprietary investments at Salomon Brothers. In 1998, he renounced his U.S. citizenship to become a British citizen.
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In 1996, Browder partnered with Edmond Safra to establish Hermitage Capital Management. Starting with $25 million in seed capital provided by Republic National Bank, the fund focused on post-Soviet privatization. By 1997, it achieved a 238 percent return, ranking as the world's best-performing fund. Browder implemented a strategy of shareholder activism, challenging the governance of major entities including Gazprom, Surgutneftegaz, Unified Energy Systems, and Sidanco. Following these activities, he was denied entry to Russia in 2005 and labeled a national security threat.
The Magnitsky Case and Policy Impact
In 2007, Russian authorities raided the offices of Hermitage Capital and Firestone Duncan, seizing corporate documents used to fraudulently re-register holding companies. Sergei Magnitsky, a tax lawyer for Firestone Duncan, uncovered a $230 million tax fraud scheme involving these entities while in state custody. Following Magnitsky's death in prison, Browder campaigned for legislation to sanction those involved in human rights abuses. This culminated in the 2012 Magnitsky Act, signed by President Barack Obama. Subsequently, Russia attempted multiple times to leverage Interpol to arrest Browder, though these requests were rejected as politically motivated.
Fast facts
- Born: 1964, Princeton
- Citizenship: United States; United Kingdom
- Education: Stanford Graduate School of Business; University of Chicago
- Key Firm: Hermitage Capital Management
- Notable Legislation: Magnitsky Act
- Former Employer: Salomon Brothers
- Language fluency: English; Russian
Questions readers ask
What was Browder's primary investment strategy in Russia?
He focused on shareholder rights activism, pressuring large companies to improve governance and transparency.
Why did Browder renounce his United States citizenship?
He cited a desire to distance himself from the rule of law issues and the historical persecution of his family during the McCarthy era.
Achievements
- Notable work: Magnitsky Act
- Affiliated with Hermitage Capital Management, Boston Consulting Group and Salomon Brothers
- Educated at Stanford University, University of Chicago and Stanford Graduate School of Business
- Worked as economist, human rights defender and businessperson
