Eminence Capital
Most hedge fund stories start with the wins. This one starts with a drawdown.
Before Ricky Sandler built Eminence Capital into one of the most respected long/short hedge funds in the market, he went through a near career-ending lesson in 1998.
His first investment firm returned 36% CAGR in its first three years.
Then LTCM hit. The fund drew down harder than the market. He split with his co-founder. Investors pulled capital.
Out of that fallout came a different blueprint:
- Single CIO
- Business quality first, price second
- Risk management ahead of its time
In today’s market — dominated by pod shops, factor rotations, and violent short-term flows — Sandler’s evolution may be more relevant than ever.
In this deep dive, I break down:
- Why Sandler shifted from “buy good businesses cheap” to catalyst-driven value
- How Eminence is organized
- What it really takes to get hired at Eminence
- The subtle difference between “value” and true contrarian investing
If you care about how elite long/short funds adapt across cycles, this is one worth studying.
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