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.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of