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(Sharecast News) - Shares of Ladbrokes owner Entain tumbled on Monday on news that major shareholder Eminence Capital is being shuttered.
According to a letter to advisors seen by Bloomberg, hedge fund veteran Ricky Sandler is shuttering Eminence and returning investor cash after a 27-year run.
Sandler was understood to have told clients that the hedge fund hasn't performed well enough in recent years to keep operating.
In a letter to investors, Sandler said poor returns, the high cost of retaining talent and spending needed to build out necessary infrastructure made it untenable to continue.
"Over the last few years, it has become increasingly difficult to apply our rigorous bottom-up investment process to rapidly shifting market conditions and an evolving market structure," Sandler said in the letter seen by Bloomberg. "We believe that in recent years we have fallen short of our very high standard and your expectations."
According to Bloomberg, Eminence is Entain's third-largest shareholder, with a stake of about 6.5%.
At 1110 BST, Entain shares were down 7% at 557.60p.
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