Howard Gold’s No-Nonsense Investing: Hedge fund buyers are getting soaked

Last week, Eric Mindich, a well-known hedge fund manager, announced he was closing his Eton Park Capital fund and returning to investors the fund’s remaining $7 billion — half of what it managed at its peak.

In his letter to investors, first reported by The New York Times, Mindich attributed the decision to a combination of industry headwinds, a difficult market environment and, importantly, our the fund’s disappointing 2016 performance.

Lately, it’s been one high-profile disaster after another in the hedge-fund world, and it’s hitting wealthy investors where it really hurts. Consider:

  • Earlier this month, Bill Ackman, the once high-flying founder and owner of Pershing Square Capital, threw in the towel on Valeant Pharmaceuticals International VRX, +4.68% , a stock that cost his investors more than $3 billion, according to Fortune magazine.

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