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Eric MindichEric Mindich (1968-) started working at Goldman Sachs after high school, and spent summers at the firm while earning a degree in economics at Harvard. In 1994, at the age of 27, he became the youngest partner in Goldman's history. He learned the trading business on Goldman's hallowed risk-arbitrage desk (such desks make bets on corporate mergers), and eventually leading the trading business to record profits. Two years ago, Mr. Mindich became one of Goldman's top executives. Starting his own money management In late 2004 he succeeded in launching a hedge fund, named Eton Park, sized at more than $3 billion, one of the largest start-up funds on record. The successful start of the fund, called Eton Park, comes despite heavy fees and other difficult terms for potential investors. For one thing, investors have to tie up their money in the fund for as long as 4 years to avoid a heavy 6% redemption fee. And Mr. Mindich's investors had to invest at least $5 million to get into the fund, and will pay an annual management fee of 2% to be part of Eton Park, higher than the usual requirements, in addition to handing over 20% of any investment profits. Despite the requirements, Goldman Sachs Asset Management, former Goldman partners, Harvard University and other large investors put large amounts into the hedge fund. Mr. Mindich plans 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, Mr. Mindich has assured his investors that he will range wide to produce big returns, including Latin American, Eastern European and South African markets. Also, as much as 30% of Eton Park's funds may go into less easily tradeable "private" transactions. While few hedge funds have ever started out with nearly as much capital, other funds that split off from existing hedge-fund firms have had problems managing so much money. In 2001, technology specialist Dan Benton left hedge fund Pequot Capital to found Andor Capital Management, taking about $8 billion and a slew of traders with him. At first the fund soared, and Mr. Benton managed as much as $10 billion early last year. But one misplaced bet -- that tech stocks would sink last year -- sparked heavy losses and investor defections. Mindich, Eric
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