Stanley Druckenmiller
Encyclopedia
Stanley Freeman Druckenmiller (born June 14, 1953) is an American
hedge fund
manager, he is the former Chairman and President
of Duquesne Capital, which he founded in 1981. He closed the fund in August 2010 because he felt unable to deliver high returns to his clients. At the time of closing, Duquesne Capital had over $12 billion in assets
.
From 1988 to 2000, he managed money for George Soros
as the lead portfolio manager for Quantum Fund. He has an estimated net worth of $2.5 billion as of September 2011, ranked by Forbes
as the 149th richest man in America. He is reported to have made $260 million in 2008.
, the son of Anne and Stanley Thomas Druckenmiller, a chemical engineer.
Druckenmiller is a graduate of Collegiate School
, Richmond, Virginia. He received a BA in English and economics from Bowdoin College
and graduated in 1975. He dropped out of a three-year Ph.D. program in economics at the University of Michigan
in the middle of the second semester to accept a position as an oil analyst for Pittsburgh National Bank.
. He became head of the bank's equity research group after one year. In 1981, he founded his own firm, Duquesne Capital Management.
In 1985, he became a consultant to Dreyfus, splitting his time between Pittsburgh and New York, where he lived two days each week. He moved to Pittsburgh full time in 1986, when he was named head of the Dreyfus Fund. As part of his agreement with Dreyfus, he also maintained management of Duquesne. In 1988, he was hired by George Soros to replace Victor Niederhoffer
at Quantum Fund. He and Soros famously "broke the Bank of England
" when they shorted British pound sterling
in 1992, reputedly making more than $1 billion in profits. They calculated that the Bank of England did not have enough reserves to prop up the currency by raising interest rates. He left Soros in 2000 after taking large losses in technology stocks. Since then, he has concentrated full-time on Duquesne Capital. He is profiled in the book The New Market Wizards
by Jack D. Schwager
. According to Bloomberg News, on August 18, 2010, Druckenmiller announced the closing of his hedge fund "telling investors he'd been worn down by the stress of trying to maintain one of the best trading records in the industry while managing an 'enormous amount of capital.'" Duquesne Capital Management posts an average annual return of 30 percent without any money-losing year. His funds were down for about 5 percent when he announced his retirement in August. However, they had since erased the losses and closed with a small gain through successful bets that the market would rally in anticipation that the Federal Reserve would announce further "Quantitative Easing
" to assist in reducing unemployment and avoid deflation.
Druckenmiller is married to Fiona Biggs, niece of investor Barton Biggs
. Druckenmiller has three daughters.
Druckenmiller is also Chairman of the Board
of Harlem Children's Zone
, a multi-faceted, community-based project. Harlem Children's Zone was founded by Druckenmiller's college friend and fellow Bowdoin College
alumnus Geoffrey Canada
. In 2006, Druckenmiller gave $25 million to the organization. Druckenmiller and his wife are also principal sponsors of the New York City AIDS walk.
franchise of the National Football League
. The five sons of Steelers founder Art Rooney Sr. were working to restructure ownership of the team, and Druckenmiller was contacted by a member or representative of the Rooney family about buying the shares of several of the Rooney brothers. On September 18, Druckenmiller withdrew his bid to purchase the team.
Former Steeler's President Dan Rooney
mentioned he has no ill will towards Druckenmiller, mentioning he's a great Steelers fan
and wishes he remains one.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
manager, he is the former Chairman and President
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
of Duquesne Capital, which he founded in 1981. He closed the fund in August 2010 because he felt unable to deliver high returns to his clients. At the time of closing, Duquesne Capital had over $12 billion in assets
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
.
From 1988 to 2000, he managed money for George Soros
George Soros
George Soros is a Hungarian-American business magnate, investor, philosopher, and philanthropist. He is the chairman of Soros Fund Management. Soros supports progressive-liberal causes...
as the lead portfolio manager for Quantum Fund. He has an estimated net worth of $2.5 billion as of September 2011, ranked by Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
as the 149th richest man in America. He is reported to have made $260 million in 2008.
Early life
He was born in Pittsburgh, PennsylvaniaPennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
, the son of Anne and Stanley Thomas Druckenmiller, a chemical engineer.
Druckenmiller is a graduate of Collegiate School
Collegiate School (Richmond, Virginia)
Collegiate School is a preparatory school for boys and girls located in Richmond, Virginia. The student body of Collegiate comprises about 1,500 total students from Kindergarten through 12th Grade...
, Richmond, Virginia. He received a BA in English and economics from Bowdoin College
Bowdoin College
Bowdoin College , founded in 1794, is an elite private liberal arts college located in the coastal Maine town of Brunswick, Maine. As of 2011, U.S. News and World Report ranks Bowdoin 6th among liberal arts colleges in the United States. At times, it was ranked as high as 4th in the country. It is...
and graduated in 1975. He dropped out of a three-year Ph.D. program in economics at the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
in the middle of the second semester to accept a position as an oil analyst for Pittsburgh National Bank.
Career
Druckenmiller began his financial career in 1977 as a management trainee at Pittsburgh National BankPNC Financial Services
PNC Financial Services Group, Inc. is a U.S.-based financial services corporation, with assets of approximately $264.3 billion...
. He became head of the bank's equity research group after one year. In 1981, he founded his own firm, Duquesne Capital Management.
In 1985, he became a consultant to Dreyfus, splitting his time between Pittsburgh and New York, where he lived two days each week. He moved to Pittsburgh full time in 1986, when he was named head of the Dreyfus Fund. As part of his agreement with Dreyfus, he also maintained management of Duquesne. In 1988, he was hired by George Soros to replace Victor Niederhoffer
Victor Niederhoffer
Victor Niederhoffer is a hedge fund manager, champion squash player, bestselling author and statistician.Victor Niderhoffer was born in Brooklyn to a Jewish family. His father, Arthur, graduated from Brooklyn Law School but went to work in the police. Victor’s mother, Elaine was a teacher....
at Quantum Fund. He and Soros famously "broke the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
" when they shorted British pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
in 1992, reputedly making more than $1 billion in profits. They calculated that the Bank of England did not have enough reserves to prop up the currency by raising interest rates. He left Soros in 2000 after taking large losses in technology stocks. Since then, he has concentrated full-time on Duquesne Capital. He is profiled in the book The New Market Wizards
The New Market Wizards
The New Market Wizards is a book by Jack D. Schwager published in 1992. The format is very similar to his 1988 Market Wizards, with a new selection of interviews with super-traders....
by Jack D. Schwager
Jack D. Schwager
Jack D. Schwager is the author of the books Market Wizards, New Market Wizards, Stock Market Wizards, and Getting Started in Technical Analysis...
. According to Bloomberg News, on August 18, 2010, Druckenmiller announced the closing of his hedge fund "telling investors he'd been worn down by the stress of trying to maintain one of the best trading records in the industry while managing an 'enormous amount of capital.'" Duquesne Capital Management posts an average annual return of 30 percent without any money-losing year. His funds were down for about 5 percent when he announced his retirement in August. However, they had since erased the losses and closed with a small gain through successful bets that the market would rally in anticipation that the Federal Reserve would announce further "Quantitative Easing
Quantitative easing
Quantitative easing is an unconventional monetary policy used by central banks to stimulate the national economy when conventional monetary policy has become ineffective. A central bank buys financial assets to inject a pre-determined quantity of money into the economy...
" to assist in reducing unemployment and avoid deflation.
Druckenmiller is married to Fiona Biggs, niece of investor Barton Biggs
Barton Biggs
Barton M. Biggs is a money manager running Traxis Partners, a multi-billion dollar hedge fund based in New York City. He formerly held the title of "chief global strategist" for Morgan Stanley and was with that firm for 30 years....
. Druckenmiller has three daughters.
Trading style and philosophy
Druckenmiller is a top-down investor who adopts a similar trading style as George Soros by holding a group of stocks long, a group of stocks short, and use leverage to trade futures and currency.Philanthropy
In 2009, Druckenmiller was the most charitable man in America, giving $705 million to foundations that support medical research, education, and anti-poverty.Druckenmiller is also Chairman of the Board
Chairman of the Board
The Chairman of the Board is a seat of office in an organization, especially of corporations.Chairman of the Board may also refer to:*Chairman of the Board , a 1998 film*Chairmen of the Board , a 1970s American soul music group...
of Harlem Children's Zone
Harlem Children's Zone
The Harlem Children's Zone is a non-profit organization for poverty-stricken children and families living in Harlem, providing free support for the children and families in the form of parenting workshops, a pre-school program, three public charter schools, and child-oriented health programs for...
, a multi-faceted, community-based project. Harlem Children's Zone was founded by Druckenmiller's college friend and fellow Bowdoin College
Bowdoin College
Bowdoin College , founded in 1794, is an elite private liberal arts college located in the coastal Maine town of Brunswick, Maine. As of 2011, U.S. News and World Report ranks Bowdoin 6th among liberal arts colleges in the United States. At times, it was ranked as high as 4th in the country. It is...
alumnus Geoffrey Canada
Geoffrey Canada
Geoffrey Canada is an African American social activist and educator. Since 1990, Canada has been president and CEO of the Harlem Children's Zone in Harlem, New York, an organization which states its goal is to increase high school and college graduation rates among students in Harlem...
. In 2006, Druckenmiller gave $25 million to the organization. Druckenmiller and his wife are also principal sponsors of the New York City AIDS walk.
Pittsburgh Steelers
In July 2008, Druckenmiller emerged as a potential investor in the Pittsburgh SteelersPittsburgh Steelers
The Pittsburgh Steelers are a professional football team based in Pittsburgh, Pennsylvania. The team currently belongs to the North Division of the American Football Conference in the National Football League . Founded in , the Steelers are the oldest franchise in the AFC...
franchise of the National Football League
National Football League
The National Football League is the highest level of professional American football in the United States, and is considered the top professional American football league in the world. It was formed by eleven teams in 1920 as the American Professional Football Association, with the league changing...
. The five sons of Steelers founder Art Rooney Sr. were working to restructure ownership of the team, and Druckenmiller was contacted by a member or representative of the Rooney family about buying the shares of several of the Rooney brothers. On September 18, Druckenmiller withdrew his bid to purchase the team.
Former Steeler's President Dan Rooney
Dan Rooney
Daniel Milton "Dan" Rooney is the United States Ambassador to Ireland. He is chairman emeritus of the Pittsburgh Steelers football team in the National Football League , which was founded by his father, Art Rooney. Rooney was elected to the Pro Football Hall of Fame in 2000 for his contributions...
mentioned he has no ill will towards Druckenmiller, mentioning he's a great Steelers fan
Steeler Nation
Steeler Nation is the unofficial name of the fan base of the NFL's Pittsburgh Steelers, coined by NFL Films narrator John Facenda in "Blueprint for Victory," the team's 1975 highlights film...
and wishes he remains one.
School
The Stanley F. Druckenmiller Hall, built in 1997 at Bowdoin College, is named after Druckenmiller's grandfather and was dedicated to Bowdoin by Druckenmiller himself.Retirement
According to the Wall Street Journal, on August 18, 2010 Druckenmiller "told clients that he's returning their money and ending his firm's 30-year run, citing the 'high emotional toll' of not performing up to his own expectations." He indicated it was not easy to make big profits while handling very large sums of money.External links
- 2006 Forbes List of World's Richest (includes photo)
- College Info
- www.aidswalk.net
- Stanley Druckenmiller and George Soros, a Hedge Fund Pair
- "Soros's Alter Ego: Low Profile, Very High Returns," The New York Times, 1993
- Excerpt from The New Market Wizards profile at Turtle Trader
- Excerpt from The New Market Wizards profile at Seeking Alpha
- "Simons Deposes Paulson as Top-Paid Hedge Fund CEO, Survey Says," Bloomberg
- "'Low key' billionaire eyes Steelers," Pittsburgh Tribune-Review, July 2008
- http://sports.espn.go.com/nfl/news/story?id=3596666
- "Druckenmiller Calls It Quits After 30 Years as Job Gets Tougher," Bloomberg, August 18, 2010
- "Steelers' suitor Stanley Druckenmiller has always been good at making money," Pittsburgh Post-Gazette, August 17, 2008