Eric Mindich
Encyclopedia
Eric Mindich is an American hedge fund
manager and the founder hedge fund Eton Park Capital Management
. Mindich began working at Goldman Sachs
after high school
, and spent summers at the firm while earning a degree in economics at Harvard College
. Mindich graduated from Harvard, where he was a member of the Phoenix S.K. Club, in 1988 with a B.A. in economics, summa cum laude, and was elected to Phi Beta Kappa.
business and managing the firm’s equities division. He joined the firm in 1988 in the equities arbitrage department and ran that department from 1992 until 2000. In 1994, at age 27, he became the youngest partner ever in the history of Goldman Sachs. In 2000, he became co-chief operating officer of the equities division and in 2002 became co-head of the equities division and a member of the Goldman Sachs Management Committee. In 2003, Mindich joined the Executive Office as senior strategy officer and chair of the Firmwide Strategy Committee.
, 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 America
n, Eastern Europe
an and South Africa
n markets.
and Lincoln Center Theater.
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
manager and the founder hedge fund Eton Park Capital Management
Eton Park Capital Management
Eton Park Capital Management is a hedge fund, founded in November 2004 by former Goldman Sachs partner Eric Mindich. While at Goldman, he was a senior member of the investment bank's Principal Strategies group....
. Mindich began working at Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
after high school
High school
High school is a term used in parts of the English speaking world to describe institutions which provide all or part of secondary education. The term is often incorporated into the name of such institutions....
, and spent summers at the firm while earning a degree in economics at Harvard College
Harvard College
Harvard College, in Cambridge, Massachusetts, is one of two schools within Harvard University granting undergraduate degrees...
. Mindich graduated from Harvard, where he was a member of the Phoenix S.K. Club, in 1988 with a B.A. in economics, summa cum laude, and was elected to Phi Beta Kappa.
Career at Goldman
Prior to forming Eton Park in 2004, Mindich spent 15 years at Goldman Sachs in two main roles: leading the firm’s equities risk arbitrageRisk arbitrage
Risk arbitrage, or merger arbitrage, is an investment or trading strategy often associated with hedge funds.Two principal types of merger are possible: a cash merger, and a stock merger. In a cash merger, an acquirer proposes to purchase the shares of the target for a certain price in cash...
business and managing the firm’s equities division. He joined the firm in 1988 in the equities arbitrage department and ran that department from 1992 until 2000. In 1994, at age 27, he became the youngest partner ever in the history of Goldman Sachs. In 2000, he became co-chief operating officer of the equities division and in 2002 became co-head of the equities division and a member of the Goldman Sachs Management Committee. In 2003, Mindich joined the Executive Office as senior strategy officer and chair of the Firmwide Strategy Committee.
Launch of Eton Park
In late 2004, he left Goldman to launch his own hedge fund, named Eton Park Capital ManagementEton Park Capital Management
Eton Park Capital Management is a hedge fund, founded in November 2004 by former Goldman Sachs partner Eric Mindich. While at Goldman, he was a senior member of the investment bank's Principal Strategies group....
, 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
Short selling
In finance, short selling is the practice of selling assets, usually securities, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to that third party...
" (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 America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
n, Eastern Europe
Eastern Europe
Eastern Europe is the eastern part of Europe. The term has widely disparate geopolitical, geographical, cultural and socioeconomic readings, which makes it highly context-dependent and even volatile, and there are "almost as many definitions of Eastern Europe as there are scholars of the region"...
an and South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
n markets.
Personal life
Mindich is on the boards of the Horace Mann SchoolHorace Mann School
Horace Mann School is an independent college preparatory school in New York City, New York, United States founded in 1887 known for its rigorous course of studies. Horace Mann is a member of the Ivy Preparatory School League, educating students from all across the New York tri-state area from...
and Lincoln Center Theater.
External links
- "Mindich Opening $3.5 Billion Hedge Fund," New York Sun, November 2, 2004
- Cityfile: Eric Mindich