12 months ago
Hedge fund Eton Park Capital Management is shuttering, per Business Insider. The New York–based fund began in 2004 with $3.5 billion, which was among the largest launches of all time. In a letter to investors reviewed by Business Insider, Eton Park founder Eric Mindich wrote:
“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 made the very difficult decision to return your capital, from a position of relative strength.”
In 2016, Eton Park’s returns were down more than nine percent, in a year when the S&P 500 gained more than nine percent. The news of the closing sent shivers throughout the hedge fund community and the company itself, with some employees finding out about the shutdown only after the news broke publicly. Per the Times, at its peak, Eton Park managed as much as $14 billion.