Ex-Soros Duo Take Team to Start Fund With Druckenmiller Cashby and
Rogers, Donfeld to bring seven Soros colleagues for new firm
Druckenmiller to make substantial investment in Castle Hook
David Rogers and Joshua Donfeld, who left their jobs as money managers at Soros Fund Management last month, are bringing most of their team to start a fund with a substantial anchor investment from Stan Druckenmiller, according to people with knowledge of the matter.
The investment from Druckenmiller, who trained Rogers at his former hedge fund Duquesne Capital Management, will be his biggest after the $1 billion he gave another protege, Zach Schreiber, to help start PointState Capital in 2011, said the people. Rogers and Donfeld are planning to start Castle Hook Partners in the fourth quarter of this year.
Rogers is “extremely talented and he did a great job when he worked for me,” Druckenmiller said in an April interview.
The pair are bringing seven members of their team, and has gotten help from billionaire George Soros’s family office to keep the group intact, said one of the people. The team includes Matthew Lentz, who specializes in real estate and infrastructure, and Jake Carney, a macro strategist. Both previously worked at Duquesne and PointState. Castle Hook, which will be based in New York, will invest across asset classes.
Representatives for Castle Hook, Soros Fund Management and Druckenmiller declined to comment.
Rogers and Donfeld decided to leave Soros Fund Management after disagreeing with Chief Investment Officer Ted Burdick about the direction of global markets, people familiar with the matter said in April.
Burdick earlier this year replaced Scott Bessent, who had left to start his own hedge fund. He is the sixth CIO to hold the job since Soros decided to scale back risk following the departures of star traders Druckenmiller and Nicholas Roditi in April 2000.
Soros, 85, has been spending more time in the office directing trades and recently oversaw a series of big, bearish investments, a person familiar with the matter said earlier this week. The philanthropist, who built a fortune through savvy wagers on markets, has taken a dim view of the world economy and particularly of China.