One of the most successful long-term investing runs in hedge fund history is over.
Legendary manager Stanley Druckenmiller of Duquesne Capital Management is retiring and closing the firm, according to a letter sent to investors.
First reported by Katherine Burton of Bloomberg, Druckenmiller explained his rationale in the one-page letter (full text below). "I have had to recognize that competing in the markets over such a long timeframe imposes heavy personal costs," he wrote.
Druckenmiller also cites the "challenge of managing an enormous amount of capital" and it "having a clear impact on my ability to perform."
According to Bloomberg, Duquesne is down 5% in 2010, which if not turned positive, would be the fund's first losing year in its 30 years of existence. The money manager for $12 billion has returned an average of 30 percent annually since 1986.
See AR's 2006 profile of Druckenmiller and Duquesne, "The anti-institution"
Here's the full letter announcing the decision.
Druckenmiller August 2010 Letter to Investors