Thursday, 21 August 2014
Last updated 2 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.
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