Stan Druckenmiller bought Treasurys after Trump's tweet in May, China

Stanley Druckenmiller, a billionaire specializing in hedge funds, said Monday that he had sold almost all of his investments and had found himself in Treasurys after President Donald Trump's tweet in May, which had magnified the trade dispute between the United States and China.

"When Trump's tweet came out, I went from 93% of my capital to a net balance and I bought a bunch of Treasurys," said Druckenmiller. "Not because I'm trying to make money, I just do not want to play in this environment."

Shares have been hit and yields have fallen since Trump's tweet of May 5 stepped up the trade battle with China. The S & P 500 is down more than 6.5% and the Dow Jones Industrial Average has lost more than 1,600 points.

Druckenmiller, who was interviewed by Scott Bessent, founder of Key Square Capital Management at the Economic Club of New York, said he feared that Trump's aggressive trade policy would hurt the US economy. He thinks the president will be defeated by Democratic opponents in 2020.

"I did not expect the adorable tweet that interrupted my golf match Sunday afternoon about a month ago," he joked.

Trump "wants to use the tariffs." He thinks it's a winning formula in countries in transition and that the belligerent, a sort of verbose pressure that he puts – and the braggart towards China – he leaves no ramp to Xi Jinping to enter into an agreement "hedge fund manager added.

Druckenmiller is the former president of Duquesne Capital. His background in hedge funds is recognized on Wall Street, generating annualized returns of 30% over his investment career. It has a net worth of $ 4.6 billion, according to Forbes.

The hedge fund manager said he was not really convinced that the financial markets would move forward.

"In fact, I own a lot of Treasurys and when I bought them, I was not sure that the rates would go down, but what I was sure of, is that they would not increase, "he said.