Eton Park Having Rough Year Despite a Strong August

Eton Park Capital Management, run by Ex-Goldman Sachs Group, Inc. (NYSE:GS) executive,  Eric Mindich, manages approximately $10 billion in its two funds, namely, Eton Park Fund, L.P. and Eton Park Master Fund, Ltd.

The Eton Park Overseas fund, a feeder fund of the Master fund, manages $6.5 billion out of the total AUM. The Overseas fund was up 0.37 percent as of the end of June 2012, while the year to date performance is up 3.17 percent.

Michelle Celarier of NY Post comments that Eton Park’s overall positive turn of 5.6 percent (till August 31) does not mitigate the bad spell of perfomance seen in 2009 to 2011. The fund lost 11 percent in the last year. The investor pressure has driven Mindich to reduce the terms of the restrictive lockup period, from 3 years to 21 months, the new plan rolls out in Jan 2013.

On the basis of strategies, the Overseas fund invests the major portion (above 40 percent for each catergory) in Long/Short equities and  Credit/Distressed debts. The rest of the fund is invested in event based opportunities. The fund’s capital is almost equally invested in emerging markets of Asia and those out of Asia. The top five longs make up 21 percent of the AUM, while the top five shorts make up 9 percent of the total assets. There is no single position in the Overseas fund that takes more than 10 percent of the AUM.

By Sector, the principle investments are in Consumer Discretionary and Financials. The Consumer Discretionary, takes up 36 percent of the total AUM on a net total basis, while the long exposure is 40 percent, and shorts are -4 percent. The fund is shorting most of its investments in Consumer Staples, Telecom, and Materials. The Long/Short exposure in financials is equally divided.

By asset classes, the capital is allocated in corporate, mortgage/ asset backed securities, and sovereign assets. The corporate assets take up 34 percent of the AUM on a net basis. The fund is shorting almost all of its Sovereign assets.