Wednesday, 28 January 2015
Last updated 3 hours ago
Mar 27 2012 | 12:19pm ET
The influx of Goldman Sachs' top proprietary trading talent into the hedge fund industry has not proven the boon to investors that many expected.
Six funds helmed by former Goldman traders, including the two biggest, have failed to make investors a nickel since their launch, Bloomberg News reports. While few, if any, have had trouble raising money—the six collected more than US$4.5 billion—all have failed to produce positive returns since inception.
The most prominent ex-Goldman hedge funds, Pierre-Henri Flamand's Edoma Capital Partners and Morgan Sze's Azentus Capital Management, each raised at least US$2 billion. But Edoma is down 2.4% in its first 16 months, and Azentus has lost 4.8% in its first nine.
Over the same period that Sze made his losses, Ariel Roskis and Danielle Benatoff lost investors in their Benros Capital Partners 1.7%.
Even the somewhat less entrepreneurial, those who joined other firms rather than founding their own, have yet to find success. Bob Howard, Goldman's former head of U.S. prop. trading, and his 11-person team have lost 1.4% in the hedge fund they launched at Kohlberg Kravis Roberts in its first seven months. And Elif Aktug will have to begin raising outside capital with a track record of having lost 2.3% since April at her Agora Fund, part of Pictet & Cie.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…