By Stephen Taub
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Louis Bacon: Watching half your asset base redeem even while performing in a stable manner was too unnerving for heroic investing |
Trip Kuehne, founder of Dallas fund of funds Double Eagle Capital Management, had been searching for a global macro manager for three years when he approached Stanley Druckenmiller for a recommendation. The Duquesne Capital Management founder, who was managing money for Kuehne at the time, suggested one of his generation’s best: Louis Bacon, founder of Moore Capital Management. “He said he was great and he won’t blow you up,” Kuehne recalls. “He’ll conserve your money.”
Somewhat ironically, Kuehne invested with Bacon last June, the month after Bacon suffered his worst-ever monthly loss—9.2%—in part because of the macro manager’s belief that the euro would fall apart. “I got fairly lucky,” Kuehne says.
But has Bacon’s luck run out?...