Druckenmiller To Close Duquesne

Aug 18 2010 | 1:53pm ET

Stanley Druckenmiller is getting going.

The Duquesne Capital Management chief is closing his $12 billion hedge fund, citing the difficulty of maintaining above-average returns and the “heavy personal costs” of 30 years in the hedge fund business.

“While the joy of winning for clients is immense, for me the disappointment of each interim drawdown over the years has taken a cumulative toll that I cannot continue to sustain,” Druckenmiller wrote to clients today. “This is true even though to date we have delivered an unbroken record of positive annual performance which I hope will continue for 2010 as well.” Druckenmiller hopes, because the fund is down about 5% this year.

But while last year and 2008 didn’t break Druckenmiller’s 29-year winning streak, “I was dissatisfied with those results because they did not match my own, internal long-term standard;” Duquesne’s returns have average 30% annually since 1986.

Druckenmiller, who launched Duquesne off in 1980 and continued to manage it even while working at Dreyfus Corp. and Soros Fund Management, will wind down his fund next year and open a family office to manage his $2.8 billion fortune, Bloomberg News reports. One thing Druckenmiller’s billions will do is seed the hedge funds of Duquesne’s current portfolio managers who go into business for themselves, as Druckenmiller did 10 years ago.

Druckenmiller left Soros 10 years ago, after a dozen years and helping Soros make one of the most famous trades of all time, a US$10 billion bet that the British pound would be devalued, earning Soros $1 billion in a day.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.