Veteran hedge fund manager Ricky Sandler is closing Eminence Capital after 27 years and returning capital to investors, citing a sustained period of underperformance and rising structural challenges in the industry, according to a. Report by Business Times.

In a letter to clients, Sandler said the roughly $7bn firm would cease operations after concluding that recent returns had not met internal expectations or investor standards. He attributed the decision to a combination of weaker performance, higher costs of retaining talent, and increased infrastructure demands required to operate competitively.

He also pointed to shifting market dynamics, noting that rapidly changing conditions and evolving market structure had made it increasingly difficult to consistently execute the firm’s long-standing bottom-up investment approach.

Eminence Capital, founded in 1999, built its reputation on long-short equity strategies and occasional activist positions across public markets.

The firm plans to return at least 75% of net asset value to investors across its funds by mid-to-late June, according to the letter.

Sandler said he was proud of the firm’s track record, culture, and investor relationships, adding that Eminence had been a defining part of his professional life.