Friday, 22 August 2014
Last updated 12 hours ago
Mar 8 2012 | 1:18pm ET
Goldman Sachs has begun a more-than-two-year process to cut its hedge fund investments to comply with the Volcker Rule.
In a letter to the Securities and Exchange Commission last year—but only posted by the regulator last week—Goldman said that it would redeem up to 10% of its stakes in certain hedge funds each quarter from this month until June 2014. It did not say which hedge and private equity funds would be affected; some of its investments in those funds are already below the Volcker rule maximum of 3% of assets in any given fund.
At the end of last year, Goldman had $3.2 billion invested in hedge funds, compared to $20 billion in total client assets in hedge funds at its asset management unit. Some of Goldman's investments are in outside hedge funds.
Goldman laid out its plans after the SEC in May of last year asked the bank to update it on its progress towards compliance with the Volcker rule. "We plan to review these expectations when the detailed scope of the prohibitions, permitted activities, exceptions and exclusions related to sponsoring and investing in private equity and hedge funds are known with certainty," Goldman responded on June 30.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note