Druckenmiller says he didn’t take enough risk in 2019

The Duquesne Family Office finally hit double-digit returns last week, according to Stanley Druckenmiller. In an interview with Bloomberg Television, the former hedge fund manager said he “couldn’t have been more wrong” when it came to 2019. Druckenmiller said he had sold all of his equities and turned to the bond market after President Donald Trump increased geopolitical tensions with China. He said he had 93% invested in the equity markets at the time.

That departure led him to miss the bulk of the 27% returns experienced by the S&P 500 this year.

Duquesne Family Office Returns

Druckenmiller had previously thought that stocks were facing a bear market in 2018. He said that he was “timid” about the risk associated with equities. This is quite different than the returns he had experienced while overseeing investment strategy at Soros Fund Management. In addition, he had returned about 30% annually while leading Duquense Capital.

Druckenmiller says that he is “just too conservative” and worries about risks tied to the Trump administration on trade and geopolitical issues.

In fact, Druckenmiller has warned about a bear market again this week. In a conversation with Bloomberg this week, he argued that the markets are calm due to the proximity of the 2020 election. However, he warned about inflation rising and the Fed tightening by the end of the year. He also raised concerns about a credit event.

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