Eton Park Capital | Eric Mindich | Hedge Fund Notes

Eton Park Capital Management

Eton Park Capital | Hedge Fund Notes

The following is our Hedge Fund Tracker profile on Eton Park Capital. View over 1,000 hedge fund tracker profiles within our Hedge Fund Tracker Tool.

Resource #1: (3.10.09) When you're convinced the central banks don't really have a grip on a global crisis, what do you do? You buy gold. Which is exactly what the likes of David Einhorn, of Greenlight Capital, is doing, as are Eton Park and TPG-Axon, according to the Financial Times. A bet on gold right now "is a bet against all paper currencies." Lots of research units are predicting that the price of gold will soar to more than $1,000. source

Resource #2 (2.3.09) Eton Park Capital made the paper profit as HSBC's share price dropped from 874¾p in September last year to 399p after the bank unveiled its rights issue.

Eric Mindich, Eton Park's founder, is a top level Democrat fundraiser and chairman of the Asset Managers' Committee, a group set up to promote best practice among US fund managers. source

Resource #3: Next up is Eric Mindich's Eton Park Capital, who was ranked 53rd in Alpha's hedge fund rankings. Mindich received an Economics degree from Harvard and then worked at Goldman Sachs' risk-arbitrage desk. After becoming the youngest partner in the history of Goldman Sachs at the age of 27, it was clear he had a bright future. In 2004, he started his hedge fund Eton Park Capital with a record $3 billion in assets and a $5 million minimum investment required of investors. Today, Mindich manages over $6 billion.

Typically, Eton Park invests in long/short equity and convertible arbitrage strategies. Additionally, as much as 30% of the fund can be invested in private investments. Back in September, Eton Park was only -1% for the year, as noted in our hedge fund performance numbers compilation. In an excerpt from a recent investor letter, Mindich said that he sees opportunity in the current markets. source

Resource #4: Eton Park Capital Management LP is the latest hedge fund to be the focus of buzz and rumors as a result of the announcement that its chief operating officer, Stuart Handel, is returning to Morgan Stanley in early 2007 to head up that firm's global prime-brokerage business, which is one of the premier businesses on Wall Street catering to hedge funds. Prior to helping start Eton Park in late 2004, Mr. Handel had been the co-head of Morgan Stanley's United States prime-brokerage operations. Clearly, this is a major promotion over the position he held previously at Morgan Stanley. The market is abuzz, though, about why such a senior executive might leave the hedge fund started by former Goldman Sachs whiz kid Eric Mindich. source

Resource #5: Eric Mindich (1967- ) started working at Goldman Sachs after high school, and spent summers at the firm while earning a degree in economics at Harvard. In 1994, at the age of 27, he became the youngest partner in Goldman's history.
He learned the trading business on Goldman's risk-arbitrage desk betting on corporate mergers.

In late 2004, he succeeded in launching a hedge fund, named Eton Park Capital Management, sized at more than $3 billion, making it one of the largest start-up funds on record. The successful start of the fund came despite heavy fees and other difficult terms for potential investors. For example, 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 big returns, including Latin American, Eastern European and South African markets. Also, as much as 30% of Eton Park's funds may have gone into less liquid "private" transactions. source

Resource #6: His name is Eric Mindich, 37, and he just opened the doors of Eaton Park 
Capital Management, the latest hedge fund to swell the ranks of the 8,000 
hedge funds in existence today, up from 2,500 a decade ago. 

Mindich has the kind of resume that turns others green with envy: summa cum 
laude economics graduate from Harvard; Phi Beta Kappa; youngest partner in 
the history of Goldman Sachs; endorsements from former Secretary of the 
Treasury Robert Rubin and U.S. Sen. John Corzine of New Jersey. He's living 
large, and judging from his... source

Resource #7: Hedge fund Eton Park Capital Management will merge with the smaller debt-oriented fund R6 Capital Management, The Wall Street Journal reported Monday on its Web site. Eton Park manages about $10 billion in funds, whereas R6 manages about $300 million. Eton and R6 are headed by Eric Mindich and Ralph Rosenberg, respectively. Rosenberg will become a partner at Eton Park, the Journal reported. source

Resource #8: Like many hedge funds, Eton Park Capital Management is branching out into credit investing. But it isn’t starting from scratch.

The $10 billion New York-based hedge fund manager is absorbing R6 Capital Management, a $300 million New York distressed debt and lending hedge fund shop. R6 has sold its portfolio to Eton Park and will close, while founder Ralph Rosenberg and his team will join Eton Park. Rosenberg and Eton Park founder Eric Mindich worked together at Goldman Sachs.

R6’s fund is reportedly up 5% this year, as it capitalized on the credit crunch by betting against the fixed-income markets.

Eton Park does not focus on debt investing, and R6 had found it difficult to raise capital for its hedge fund. The deal will allow Rosenberg to use Eton Park’s infrastructure to boost the amount of money he runs in his strategy. source

Resource #9: For the second time in his still-young career, Eric Mindich is hitting it very, very big.

Mr. Mindich is opening a hedge fund he founded with capital commitments of $3.5 billion, believed to be the largest-ever fund launch.

The fund - Eton Park Capital Management - starts with $2 billion in the bank, a sizable portion of which is said to come from Harvard Management Company, the $19 billion endowment of Harvard University, according to sources familiar with the fund. Mr. Mindich was on the board of HMC until his recent resignation.

Mr. Mindich did not return calls for comment yesterday.

Mr. Mindich first made a name for himself on Wall Street in 1994 when Goldman Sachs made him its youngest partner ever, at 27. When Goldman Sachs went public in 1999, Mr. Mindich's stake in the firm was valued at more than $100 million. source

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