Launch of Eton Park
In late 2004, he left Goldman to launch his own hedge fund, named Eton Park Capital Management, sized at more than $3 billion at the time. Under the investment terms, investors had to invest their money in the fund for as long as 4½ years to avoid a 6% redemption fee. Mindich's investors also had to invest at least $5 million and pay fees of "2 and 20," an annual management fee of 2% plus 20% of all profits.
It is claimed that he planned to invest as much as 70% of Eton Park's money in traditional equity strategies involving both purchases and "shorting" (the sale of borrowed stock in a bet the stock price will decline). But given just how much money is now in equity hedge funds, he assured his investors that he would invest globally to produce sizeable returns, including Latin American, Eastern European and South African markets.
Read more about this topic: Eric Mindich
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