Former managers of Duquesne Capital Management are preparing to start a new hedge fund that will oversee roughly $5 billion, one of the biggest such launches ever, MarketWatch reported Friday.
The new fund, called Point State Capital, will focus on a strategy known as global macro, trading based on broad economic themes.
Point State was over-subscribed. It will close to new investment on the same day as it launches, people close to the matter said on condition of anonymity.
Point State may be the second-largest hedge fund launch ever. Jack Meyer, who ran Harvard University’s endowment for almost 15 years, raised a record $6 billion for Convexity Capital Management in 2006.
Point State likely benefited from close ties with Duquesne, run by hedge fund veteran Stanley Druckenmiller, who used to be a leading trader at Soros Fund Management.
Druckenmiller told investors in August that he was shutting down Duquesne after lackluster performance earlier in 2010. At the time, some of the firm’s other managers were already working on launching their own hedge fund.
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