[Photo:  World Economic Forum at Davos / Wikimedia Commons]

Eric Mindich, a one-time superstar at Goldman Sachs and the current founder and CEO of Eton Park Capital Management is shutting down his $7 billion hedge fund after 13 years in operation. It’s the first big hedge fund to close this year.

Mr. Mindich first made his name as a fast-rising star on Wall Street, heading up Goldman's arbitrage desk at the age of 25. In 1994, just 27, he became Goldman's youngest partner ever. All told, Mr. Mindich spent 15 years at Goldman Sachs in 2 main roles: leading the Equities Arbitrage business and managing the Equities Division.

• In 1988, after graduating summa cum laude from Harvard, he joined the Equities Arbitrage Department at Goldman Sachs at age 21.
• From 1992 until 2000, he led that team.
• At age 27, he became the youngest partner in the history of Goldman Sachs.
• In 2000, Eric became Co-COO of the Equities Division.
• In 2002, he became Co-Head of the Equities Division and a member of the Goldman Sachs Management Committee.
• In 2003, he joined the Executive Office as Senior Strategy Officer and Chair of the Firm-wide Strategy Committee.
• In 2004 he left Goldman to start Eton Park.

Since starting Eton Park in 2004, the hedge fund had been posting relatively solid returns. His best year was in 2013, when  the fund returned 22%. However, the fund lost 10% in 2016 and, so far is 2017, it is flat. This prompted Mr. Mindich to shut the firm.

After notifying employees of the decision, the firm issued a letter to investors, which included these sentiments from Mr. Mindich:

"Recently, 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."

 

"As responsible stewards of your capital, we have been unwilling to compromise on the business model and investment program in which you invested or the way in which we have pursued it."