This weekend Stan Druckenmiller sat down with the
WSJ to talk about hiscontinued crusade for entitlement reform.
The legendary hedge fund manager has been visiting schools from Maine to California, encouraging kids to start a revolution to change the way the country spends on the future.
The fact that he’s doing this at all is strange — what’s stranger, at least for a Wall Streeter, is how he talks about it.
Mr. Druckenmiller describes the reaction of students: “The biggest question I got was, ‘How do we start a movement?’ And my answer was ‘I’m a 60-year-old washed-up money manager. I don’t know how to start a movement. That’s your job. But we did it in Vietnam without Twitter and without Facebook and without any social media. That’s your job.’ But the enthusiasm — they get it.”
In an interview with Goldman Sachs earlier this year, Druckenmiller sounded equally futile about his place in an easy-money, QE market. He, like a lot of hedge fund managers, has been critical of Fed Chair Ben Bernanke’s policies.
Unlike other hedge fund managers, though, he’s open about his own feelings of inadequacy because of those policies.
It has become harder for me, because the importance of my skills is receding. Part of my advantage, is that my strength is economic forecasting, but that only works in free markets, when markets are smarter than people….
It’s not predicting anything the way it used to and that really makes me reconsider my ability to generate superior returns. If the most important price in the most important economy in the world is being rigged, and everything else is priced off it, what am I supposed to read into other price movements?
Druckenmiller told the WSJ that he’s been shocked at the positive reception he’s gotten from students around the country. Hopefully that’s reinvigorating him.
It’d be nice to hear him sound like he’s got a little spring in his step.