By Stephen Taub
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.”
||Louis Bacon: Watching half your asset base redeem even while performing in a stable manner was too unnerving for heroic investing|
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?...