Gustavo Ballvé on August 23rd, 2010
Corporate Strategy, Diversified financials, Food for thought, Home, Industries, Portfolio Management

Mr. Druckenmiller has over 30 years’ experience, his Duquesne Capital manages $12 billion and since 1986 never had a down year (although it is down 5% YTD). Letting the article highlight another impressive feat: “Druckenmiller has run Duquesne since 1980, even while working for two other organizations, mutual-fund manager Dreyfus Corp., from 1986 to 1988, and Soros Fund Management, where he was chief strategist from late 1988 to 2000. Both Soros and Dreyfus Chairman Howard Stein wanted Druckenmiller badly enough to let him continue managing his own fund.” The Soros years include the famous “British pound trade”. So why quit? Interestingly, he’s “frustrated by his failure in the past three years to match returns that had averaged 30 percent annually since 1986.” Why, in his opinion, did it happen? “ ‘Managing more than $10 billion seems to challenge my long-term standard’ for investment performance, Druckenmiller said.

A fund manager’s mandate is all about investment performance and not AUM growth – the opposite is not just wrong, it can also be self-defeating.

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