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Eton Park Capital Management has become the latest hedge fund industry casualty after saying it would return money to investors after a disappointing 2016.

The $7bn hedge fund, founded by Goldman Sachs alum Eric Mindich in 2004, was down 9 per cent last year in its flagship fund and was not able to recover, despite net inflows in 2016.

“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,” Mr Mindich wrote in a letter to investors today.

He said they would be returning capital “from a position of relative strength,” and would seek to give back 40 per cent of all investors’ main portfolio balance by the end of April.

It is one of the largest hedge fund closures since Richard Perry said in last September he would shut Perry Capital after 28 years in business.

The move was reported earlier by Bloomberg.

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