Billionaire financier George Soros, reeling from his funds' losses in technology stocks, said yesterday that new economy stocks remained overvalued and the market chaotic.

The comments were a further blow to the hi-tech sector which has weathered the sharp falls and, recently, dramatic rises in indices like Nasdaq.

"I think that the markets have become somewhat chaotic and very few people have been able to make money," Mr Soros said on the BBC's Radio 4 Today programme. "In my opinion, they [technology stocks] are overvalued. There has been a fantastic boom followed by an initial crash. I think there is a long period of drying out to come."

Mr Soros, an elder statesman of the investment world and chairman of Soros Fund Management, recently restructured his firm's flagship Quantum Fund to pursue a less risky investment strategy, stating that he would prefer returns of about 15% rather than 31% if it meant stability.

Additionally $4.5bn of Soros funds are expected to invested in real estate and private equity, where Mr Soros's son Robert has a keen interest. Robert Soros is to take a bigger management role in the family business.

Mr Soros, 70, said his conservative stance towards technology shares was also prompted by his desire to have an organisation that outlived him.