Duquesne’s End Not The End Of Duquesne’s Team

Aug 20 2010 | 1:46pm ET

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.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note