Several high profile hedge fund managers have decide to throw in the towel and leave the industry, citing growing frustration over increased regulations, higher taxes on profits and disappointment with returns.
The latest is Stanley Druckenmiller, who managed $12 billion at Duquesne Capital Management, reports Reuters. His decision was reportedly due to “burnout”, after amassing a personal fortune pegged by Forbes at $2.8 billion.
He joins Renaissance Technologies’ founder Jim Simons who retired last year, and Highfields Capital co-founder Richard Grubman, who has told investors and colleagues that he plans to step down to focus on personal matters.
Many hedge funds have seen relatively flat returns in 2010. Flat returns mean smaller paychecks for hedge fund managers, especially on the 20 percent portion of their fee based on performance.
Of course it’s easy for a billionaire fund manager to cash out after earning their fortune. But what about other managers who may not have experienced the same level of success quite yet? Do you think these departures will make room for hungry, young hedge fund managers and others looking for hedge fund jobs to take their place? Add your comments below.