Source: Fortune.com
Summary
Ricky Sandler, founder of Eminence Capital, is closing the hedge fund after 27 years due to disappointing returns and high costs. The firm, which manages around $7 billion, will suspend redemptions and distribute at least 75% of each fund’s net asset value by mid-to-late June. Sandler cited difficulties in adapting to shifting market conditions and an evolving market structure.
Our Reading
The numbers tell one story.
Eminence Capital’s 27-year run ends with a whimper, not a bang. Ricky Sandler’s letter to investors cites “rapidly shifting market conditions” and “evolving market structure” as reasons for the closure. But the real issue might be the fund’s poor performance and high costs. Sandler’s pride in the firm’s culture and investor base rings hollow when the numbers don’t add up. The 75% cash distribution by June sounds like a consolation prize. The real question is: what took them so long to admit defeat?
Author: Evan Null
