Eminence Capital is an investment management firm with more than $14 billion in assets under management (AUM). It currently manages a total of 14 pooled investment vehicles, half of which are hedge funds. The firm currently employs 25 advisors.
It's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible to accredited investors. If you're looking for trusted and comprehensive support in managing your own finances, consider speaking to a professional financial advisor.
Eminence Capital Background
Eminence Capital, LP launched as Eminence Capital, LLC in January 1999. Founder, CEO and CIO Ricky Sandler is also a CFA (chartered financial analyst), a member of the New York Society of Security Analysts and a current memeber of the board of directors of the University of Wisconsin Foundation. At the onset of the COVID-19 pandemic in early 2020, he made news headlines as having a bullish view of the stock market when social distancing restrictions began and later supporting the idea of herd immunity.
The firm's funds are as follows:
- Eminence Classic Funds
- Eminence Leveraged Classic Funds
- Eminence Long Funds
- Single-Investor Funds
Investors in these funds may include some or all of the following: individuals, banks or thrift institutions, investment companies, pension and profit-sharing plans, trusts, estates or charitable organizations, other corporations or businesses entities, private investment funds or other entities.
Fund investors are generally required to make minimum initial investments of at least $1 million. If an existing investor wishes to make an additional investment, the minimum is generally $100,000.
Eminence Capital Investment Philosophy
Eminence Capital opened with and still focuses on a single investment strategy as its primary investment focus: fundamental long-short equity investing, meaning that it aims to create balanced portfolios that take advantage of both rises and falls in the market. Each fund's investment objective is to seek above-average long-term capital appreciation (or net increase in value of assets) through these investments.
To do this,the firm uses what it calls a research-driven "quality value" investment strategy. This approach emphasizes the traditional elements of value investing and also focuses strongly on investing in high quality businesses and avoiding or selling short low quality businesses. Eminence's research practices involve financial and qualitative analysis (i.e. evaluating the more intangible factors such as quality of management, labor relations or strength of research).
When valuing a security, the firm analyzes both the security's intrinsic value as well as the likelihood and magnitude of the security's increase or decrease in future value.
The firm goes about its monitoring and due diligence process in a variety of ways, including but not limited to constructing proprietary financial models and analysis, scrutinizing regulatory filings or managment commentary and financial statements, evaluating third-party company and industry information, meeting with senior management personnel and performing qualitative field research. Of course, potential and current clients should always remember that investment strategies never protect against risk of loss.
Largest Hedge Funds Managed by Eminence Capital
Eminence Partners, LP
- AUM: $3,482,619,437
- Minimum: $10 million
- Beneficial Owners: 135
Eminence Fund Master, Ltd.
- AUM: $3,407,119,329
- Minimum: $100,000
- Beneficial Owners: 134
Eminence Fund Long Master, Ltd.
- AUM: $2,461,195,159
- Minimum: $10 million
- Beneficial Owners: 132
Eminence Fund II Master, LP
- AUM: $1,386,378,492
- Minimum: $250,000
- Beneficial Owners: 2
Eminence Fund Leveraged Master, Ltd.
- AUM: $979,930,248
- Minimum: $10 million
- Beneficial Owners: 45
Fees at Eminence Capital
Eminence Capital fees include management fees and performance-based fees. Fees are charged by the firm to the Funds, not to the clients directly. You can take a closer look at the general percentages in the table below:
| Eminence Capital Fund | Annual Management Fee | Performance-Based Fee |
| The Classic Funds | 1.25% | 20% |
| The Leveraged Classic Funds | 1.875% | 20% |
| Eminence Long Funds | 1.0%-1.75% | 20% |
Additional fees and expenses may apply - including but not limited to registration fees, maintenance fees, certain taxes and regulatory expenses. Some performance-based fees may depend on the class of shares or amount of capital appreciation, and can also be subject to high-water marks, or all-time highs. Therefore it is imperative that potential clients reach out about specific fees charged to their fund.
What to Watch Out For
Again, it's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible only to accredited investors, who, along with sophisticated investors, are allowed by the SEC to buy securities like these. These two groups of investors differ from retail investors or individual investors, who might be taking a more DIY approach or enlisting the services of a financial advisor.
Within the past 10 years, Eminence Capital has not undergone any disciplinary or legal action deemed material to a client’s evaluation of its business integrity. That said, as an SEC-registered investment manager, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times. You can view its latest Form ADV on the official website of the Securities & Exchange Commission (SEC).
Becoming a Client of Eminence Capital
If you are an accredited investor and wish to become a client of Eminence Capital, you can visit the firm's website or call (212) 418-2100.
Investing Tips
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