Stanley Druckenmiller: Size, Size, Size, When You Think You’re Right!

Johnny HopkinsStanley DruckenmillerLeave a Comment

Here’s a great interview with Paul Tudor Jones and Stanley Druckenmiller. Tudor Jones asks Druckenmiller how his investment style compares with that of Ray Dalio. Here’s an excerpt from the interview:

Paul Tudor Jones: It’s such a contrast what you’re saying right now versus what Ray Dalio said here yesterday right. Ray Dalio, largest hedge fund manager in the world, I think astounding all of us when he said what I’m trying to do is find 15 equal uncorrelated bets no matter. Here’s the guy has the best research group on all of Wall Street saying even if I had perfect research I’d still want to have 15 bets, your thoughts?

Druckenmiller: There’s a number of ways to skin a cat in the investment business. I think as long as you’re disciplined and you stick to it, you make money. I have the polar opposite investment philosophy. I put all your eggs in one basket and watch the basket carefully. Sometimes you have major inflection points where you can anticipate change and I found the best thing that works for me, it may not work for others, is to really pile in with size in those particular trades.

I’ve had… I can remember I had a three hundred and fifty percent long equivalent ten years in late 2000, in the bond market. I’ve had two to three hundred percent of my NAV in one currency and by and large my track record in those is much better than others. I tend to only do stuff that radical in very liquid markets, and trade 24 hours a day.

You can watch the entire interview here:

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