Tuesday, 21 October 2014
Last updated 10 hours ago
May 10 2012 | 12:35pm ET
Goldman Sachs has begun to step back from hedge funds as required by the U.S.'s new Volcker rule.
The Wall Street giant said it had redeemed $250 million of its hedge fund investments in the first quarter, a little more than 7.5% of its total hedge fund portfolio. The firm now has about $3.06 billion in hedge fund investments.
Goldman said in its filing that it planned to "redeem up to approximately 10% of certain hedge funds' total redeemable units per quarter over 10 consecutive quarters," until the second quarter of 2014. The bank has also endeavored to remain at or under one of the Volcker rule thresholds, limiting "the firm's initial investment to 3% for certain new funds."
The Volcker rule bars banks from proprietary trading and limits them to holding no more than 3% of any one hedge or private equity fund's assets or from investing more than 3% of its Tier 1 capital. All told, Goldman owns stakes totaling $17.2 billion with further commitments of $7.77 billion, including nearly $12 billion in private-equity investments and commitments.
Goldman said it "continues to manage its existing private-equity fund taking into account the transition periods under the Volcker rule." Those investments aren't redeemable, but Goldman said it expects that "substantially all of the underlying assets of the existing funds will be liquidated over the next 10 years."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...