Friday, 29 August 2014
Last updated 16 hours ago
Aug 5 2010 | 1:45pm ET
The next really big hedge fund launch is likely to be the regulator-required spin-off of Goldman Sachs’ proprietary trading business.
Goldman Sachs plans to close its Principal Strategies business and transform it into a hedge fund, Bloomberg News reports. An announcement could come as soon as tomorrow, with the spin-off coming by the end of the year.
It is still unclear how much the GSPS team, led by Morgan Sze, hopes to raise in outside capital, or what role, if any, Goldman will have in the new hedge fund. The newly-passed Dodd-Frank financial regulation reform bars banks from proprietary trading, but allows them to invest up to 3% of their capital in hedge funds.
Goldman appears to be trying to beat other firms to the punch: Under the provisions of the so-called Volcker rule, banks have up to four years to wind down their prop. desks. The move also comes as Morgan Stanley is reportedly finalizing plans to spin-off its FrontPoint Partners hedge fund.
Goldman does not disclose how much GSPS manages. But prop. trading accounts for about 10%, on average, of its annual revenue.
The bank, however, plans to hold on to its private equity businesses. The Wall Street Journal reports that Goldman has no plans to close, sell or spin-off its p.e. units.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...