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

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note