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Komfie Manalo, Opalesque Asia: Erich Mindich is shutting down his hedge fund Eton Park after losing 9% in 2016 and its assets falling by $2bn to the current $7bn, Reuters reported.
Mindich told investors in a letter, "We have made the very difficult decision to return your capital, from a position of relative strength."
The hedge fund is shutting down after a high-profile launch in 2004 when Eton Park set an industry record of $3bn initial capitalization.
However, Eton Park was hit by market challenges last year despite gaining positive returns in its largest positions. The hedge fund's biggest stock position, Microsoft Corp., returned 12% last year.
According to Mindich, at least 40% of the fund's investors will receive their money by the end of April this year as he pledged to protect Eton Park's capital during its liquidation process. During its peak, Eton Park managed up to $14bn.
He added in his letter, "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."
"We have been unwilling to compromise on the business model and investment program in which you invested or the way in which we have pursued it," Mindich added....................... To view our full article Click here
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