Investing legend Stan Druckenmiller is making one of his biggest investments ever in a hedge fund

One of the hedge fund industry's legendary investors is backing one of the most high-profile hedge fund launches of the year.

Stanley Druckenmiller is said to be making his second-biggest investment in a hedge fund ever, according to a person with direct knowledge of the matter.

Druckenmiller is investing in two portfolio managers who previously worked at George Soros' family office, according to two people with direct knowledge of the launch.

It will be Druckenmiller's biggest investment since he backed PointState Capital with $1 billion in 2014, according to one of the people.

David Rogers and Joshua Donfeld, who left George Soros' family office earlier this year, are launching a fund called Castle Hook Partners, making bets on long and short equity, credit, commodities, interest rates, and foreign exchanges, according to one of the people. They are bringing along two other Soros team members: Matt Lentz and Jake Carney.

Castle Hook may also nab an investment from legendary investor Soros, who just announced his comeback into trading, when the firm launches in the fourth quarter of this year or the first quarter of 2017, according to the person.

Soros has said that he is bearish on the economy, but the Castle Hook team is said to be more bullish on commodities in particular. Rogers and Donfeld left Soros because of investing disagreements with the CIO, according to one of the people.

Druckenmiller said, according to a spokesman, that he will be "an enthusiastic investor in this new fund." Druckenmiller, who famously broke the Bank of England when he worked alongside Soros, has backed other hedge funds, including Michael Karsch's Karsch Capital in 2000.

Morgan Stanley and Goldman Sachs are set to be the prime brokers to Castle Hook, helping the firm facilitate its trades, according to people familiar with the matter.

The launch comes as several macro managers prepare to launch new funds. Ben Melkman of Brevan Howard plans to launch a new fund, as does Chris Rokos, who raised one of the biggest funds in recent memory with $3.5 billion, according to Bloomberg.

The launches come at a tough time for most new hedge funds to raise money. Coming from big brands can help nascent funds, along with the backing of big names.

Hedge Fund Alert first reported news of the launch.