Most of Duquesne Capital Management’s 10 portfolio managers will continue to manage money for firm founder Stanley Druckenmiller even after the 30-year-old hedge fund closes its doors next year.
Duquesne’s stable of fund managers are expected to split between a new hedge fund firm founded by themselves and Druckenmiller’s planned family office, the Financial Times reports. “He’s got a lot of quality folks,” on source told the newspaper. “A lot will just be recycled back.”
Druckenmiller told investors this week that he would close his enormously successful $12 billion hedge fund, citing dissatisfaction with his own performance as a fund manager in recent years—despite Duquesne’s unbroken streak of positive annual performance—and the personal toll managing so much money has taken.
Meanwhile, the FT reports that the closure of Duquesne is unlikely to have much of an effect on the markets. Druckenmiller himself accounts for as much as 40% of the firm’s assets, and that Duquesne is not heavily leveraged and is primarily invested in liquid securities. In addition, Druckenmiller is giving himself plenty of time to wind the fund down, until the end of next year.
“There will be no blip in the markets as he returns money to his investors,” one prime brokerage executive told the FT.