Stanley Druckenmiller, a key player in George Soros' famous bet against the British pound that earned him $1 billion, said Wednesday he is closing his firm after 30 years.
In a letter sent to his 100-plus investors, Druckenmiller, the 57-year old chief executive officer of Duquesne Capital Management, said that over the last few years, the hedge fund business has taken a toll on him both professionally and personally.
"I have had to recognize that competing in the markets oversuch a long time frame imposes heavy personal costs," he said. "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."
Duquesne, which oversees $12 billion, is down 5 percent in 2010, a spokesman said.
Druckenmiller's fund has returned an average of 30 percent per year since 1986, which quickly made him part of a group of younger stars in the hedge fund industry.
Druckenmiller's defensive plays conserved value and cemented his reputation. In 2006, he ranked among the top earners in an industry where managers routinely charge a 20 percent performance fee.
The fund will wind down sometime in 2011, potentially around its 30th anniversary in February, CNBC's Kate Kelly learned Wednesday.
People familiar with the matter say Druckenmiller is not shutting down immediately because he wants to finish the year on a high note—November and December is typically a strong season for the fund.
No comments:
Post a Comment