Ex-Goldman Fund Shuts Amidst Uncertainty

Oct 12 2011 | 1:20pm ET

Three former Australian Goldman Sachs traders have shuttered their hedge fund, choosing to wait out the current economic turmoil before returning to the markets.

Global Trading Strategies, based in Sydney, stopped trading on July 31 and had returned 99% of its investors' capital by the middle of last month, Bloomberg News reports. The firm's founders, Brett Allender, Karl Mayer and Andrew Peden, former Goldman Sachs JBWere traders, decided "that the current environment wasn't conducive to their trading style and they thought it better to hand money back to investors," Murray Chatfield, chief operating officer, said.

"A lot of our investors didn't want us to do it, but we thought it was the correct thing to do," he added. "At some point we'd make a decision on how and when to re-enter the market."

The once-$1.2 billion global macro fund managed only $400 million at the end of July, following a year of negative returns. The six-year-old hedge fund, which began within Goldman Sachs JBWere, had doubled investors' money since inception and employed 24 people.

The fund's remaining 1% is being held back for regulatory reasons, Chatfield said.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

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

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of