Unlucky for some

23 March 2017 By Tom Buerkle

Eric Mindich set a possible record raising over $3 bln to launch his fund in 2004. After a dismal 2016 cut the firm’s assets to $7 bln, the ex-Goldman star is following other big names who could no longer make the high-fee model work and closing down. Good luck to lesser mortals.

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Eton Park, the multistrategy hedge-fund firm, will close down and return capital to its investors, founder and Chief Executive Eric Mindich said in a letter to investors on March 23. The flagship fund posted a loss of 9 percent in 2016 and the firm's assets have fallen to $7 billion, half the peak in 2011, according to a person knowledgeable about its results.

“Recently, a combination of industry headwinds, a difficult market environment and, importantly, our own disappointing 2016 results have challenged our ability to continue to maintain the scale and scope we believe necessary to pursue our investment program consistent with our founding principles,” Mindich wrote in a letter to clients. “As a result, we have made the very difficult decision to return your capital, from a position of relative strength.”

The firm expects to return 40 percent of assets to investors by the end of April. Other less-liquid investments will take longer to sell.

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