Goldman Says Fund Of Funds Unit Still Growing

Aug 3 2010 | 3:49am ET

Despite having its name dragged through the mud by the Securities and Exchange Commission, Goldman Sachs says investors are continuing to flock to its fund of hedge funds unit.

Kent Clark and Chris Kojima, co-heads of Goldman Sachs Asset Management’s Hedge Fund Strategies division, told AR magazine that clients continue to invest in its funds of funds. The growth of the unit—it has grown 13% to $21 billion since the beginning of 2009—comes as most funds of hedge funds are having trouble holding on to investors.

Recent inflows have also come in the face of the SEC lawsuit against Goldman, in which the bank was accused of misleading investors in a collateralized debt obligation it allegedly structured and marketed on behalf of hedge fund Paulson & Co. The firm settled those charges last month, agreeing to pay $550 million.

According to Clark and Kojima, Goldman’s fund of funds business has its “largest, deepest and strongest” team ever. The unit currently employs more than 100 people.


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Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

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