Eton Park, the USD 10 billion hedge fund of Eric Mindich, plans to decrease management fees and offer a more liquid share class. This was revealed in a letter that Eton Park sent to its clients reported by Reuters. This is considered a rare change in the highly-popular fund that was able to enforce some of the strictest investment conditions in the industry, Reuters added.

In the letter, Eton Park said that starting January 1, the 2% management fee for Eton Park Fund Lp and Eton Park Oversees Fund Ltd will be 1.5% per year for all existing share classes. According to industry insiders, the latest change is a reflection that hedge funds are now agreeing to the demands of investors to cut their fees and enable easier access to their money.

The letter also stated that it will offer a more liquid share class. Instead of allowing investors to take out money after seven quarters, the new share class will allow shareholders to pull out their funds in just four quarters.

Eton Park posted strong returns in 2013. The letter said that their main fund earned a return of 17.6% until mid-November. This compared with the average hedge fund gain of only 7% and the 25% increase of the benchmark Standard & Poor's 500 index.

In 2012, the main portfolio returned 12.6%. Since January 2012, Eton Park was able to generate a 32.4% net return. Compared to the year before when it was off 11%, the latest figure was considered an improvement.     

Mindich set up Eton Park in 2004 which was able to raise USD 3.5 billion due to the huge demand. The demand also gave him the ability to enforce an extraordinarily lengthy lockup period of over two years. The hedge fund industry is valued at USD 2.5 trillion.