Eric Mindich
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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.
[edit] Starting his own money management firm
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. In 2005, Eton Park returns were disappointing [1]
Mindich is on the boards of the Horace Mann School and Lincoln Center Theater.
