Friday, 24 March 2017
Last updated 8 min ago
Sep 28 2012 | 2:31pm ET
After years of resistance, Goldman Sachs has rolled out a hedge fund platform.
The Wall Street giant's Hedge Fund Select program debuted this summer and offers its biggest clients access to about 10 hedge funds, including those run by Brevan Howard Asset Management and JANA Partners. As with its competitors' platforms, Hedge Fund Select gives clients—in Goldman's case, those with at least $25 million with the bank—the ability to invest in some of the industry's biggest names with lower minimum investment requirements than a direct investment would offer.
Goldman clients will pay a 1% fee for the privilege. But so far, few seem to be taking the bank up on its offer: Hedge Fund Select has raised only $500,000 for Brevan Howard, the minimum investment for a single fund, and $2 million for an Eminence Partners fund, Reuters reports. All told, Hedge Fund Select has garnered money for just five of the 10 funds on the platform; Goldman hopes eventually to offer about a dozen hedge funds.
Prior to the launch of Hedge Fund Select, Goldman preferred to direct clients to its own hedge fund offerings and to funds of hedge funds. But clients have proven unhappy with Goldman's hedge fund performance in recent years and complained that its funds of funds were not as good as those offered by competitors.
In addition to Brevan Howard, Eminence and JANA, Hedge Fund Select offers access to Bocage Global Resources, Brigade Capital Management, Corsair Capital and Select Equity Group.