In this six-part series, we will go through some of the main positions Eton Park Capital traded this past quarter
Eton Park Capital Management is a multi-strategy hedge fund founded in November 2004 by former Goldman Sachs partner Eric Mindich.
The firm started new positions in Family Dollar Stores (FDO) , Constellation Brands (STZ), Sotheby’s (BID), and Equinix Inc. (EQIX) and sold positions in Nielsen Holdings NV (NLSN) and Priceline.com Inc. (PCLN).
Abbreviated financial summaries and metrics for these securities are included below. Detailed analysis and recommendations require a subscription (more information at the bottom of the article).
Why buy Constellation Brands (STZ)?
Constellation Brands said net sales more than doubled year-over-year to 1.46 billion in 2Q 2014 and this was mainly driven by the consolidation of newly acquired businesses, especially Crown Imports and its Modelo and Corona brands. It said beer segment generated net sales of $815 million, an increase of 3% year-over-year while wine and spirits net sales on an organic constant currency basis decreased one percent as wine volume growth was more than offset by higher promotional expense and lower spirits volume. The company updated its outlook and now expects adjusted earnings for fiscal 2014 to be in the range of $2.80–$3.10 per share reflecting reduced tax rate guidance, compared to the earlier projection of $2.60–$2.90. For its wine and spirits business, its investments in innovation behind new brands and key Focus Brands is expected to position it for a strong marketplace execution during the key holiday season.
Eton Park Capital founder Eric Mindich has a degree in economics, summa cum laude, from Harvard University. The fund is estimated to have around $19.4 billion in assets under management and has offices in New York, London, and Hong Kong. The fund follows a bottom-up, research-driven approach seeking mispriced assets that fall both within and between conventionally defined investment strategies. It invests in both public and private markets, and investors in the fund generally have their capital committed for between three and five years—considerably longer than the quarterly redemption notices characteristic of many hedge funds. Eton Park has a global approach to investing and flexibly allocates capital between regions in the same bottom-up, idea-driven manner that it applies to investment strategies within a region. It focuses its investments in Europe, North America, Latin America, Eastern Europe, Asia, the Middle East, and South Africa. Cross-border strategies are also an important area of emphasis.