Goldman Gives In, Launches Hedge Fund Platform

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.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR