Goldman Vets Covered In Red

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.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note