WEST PALM BEACH, FL (HEDGECO.NET) – Eric Mindich, former Goldman Sach�s manager is gearing up to launch his new hedge fund. According to news reports, the fund will allocate up to 30% of capital tobe invested in private equity. This equity allocation has been described as high; one manager said, “No one else has come to market and advertised 30% of capital in seriously illiquid instruments.�Generally, most equity allocations are in the range of 10-20%, most hedge fund market analysts think.
The new Mindich hedge fund is to be launched October 1 and the firm is still putting the fund together. The Eton Park hedge fund will be utilizing several trading strategies, including long/short equity strategies, credit arbitrage, capital structure arbitrage, convertible arbitrage, as well as statistical arbitrage.
According to new released statements, investors in the fund will have the option to choose between two share classes, A and B. Class A investors will not be allowed to redeem their investments prior to the expiration of two years, upon which they may withdraw one-third of their investment portfolios if they desire. They may also withdraw another 33% after the third year, and the rest of their investments may be withdrawn after the fourth year according to the statements.
The class B investors may no withdraw any of their assets in the fund for one year, during the second year they may redeem their assets but will be charged a 6% penalty if such redemptions are made during the first 3 � years of their initial investment. Class B investors may avoid such penalty if they redeem 33% of their assets after the first 3 � years. Similar withdrawals could be made thereafter in 4.5 years, and 5.5 years according to released statements.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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