Duquesne Veterans Plan Giant Hedge Fund Launch

Nov 8 2010 | 12:35pm ET

A half-dozen former Duquesne Capital Management fund managers and the firm's former vice chairman are preparing the second-largest hedge fund launch in history.

Point State Capital will launch next year with $5 billion, all of it from Duquense founder Stanley Druckenmiller and former Duquesne investors. The new fund, which at its debut will be $1 billion smaller than former Harvard University endowment chief Jack Meyer's Convexity Capital Management was at its launch four years ago, will be closed to new investors.

No hedge funds this year have launched with more than $1 billion.

Despite his $1 billion investment in Point State, Druckenmiller will not have an ownership stake in the firm, Bloomberg News reports. Point State will be led by former Duquense vice chairman Sean Cullinan as CEO.

To emphasize its links with its predecessor firm, New York-based Point State is named after the park in downtown Pittsburgh where Fort Duquense once stood.

For his part, Druckenmiller has returned some 98% of the $12 billion managed by Duquense—but not before ensuring that he'd end his career with an unbroken 30-year stretch of positive returns. He plans to open a family office to manage $3 billion of his fortune.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of