Eric Mindich (born 1967) 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 exclusive 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 arbitrage 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 Management, 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[who?] 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 American, Eastern European and South African markets.