Goldman Prepping $10B Hedge Fund Launch

Dec 17 2007 | 1:37pm ET

In spite of the awful performance of its flagship hedge fund, investors don’t seem to be forsaking Goldman Sachs’ hedge fund products. The Wall Street giant is preparing what could be the biggest launch in the history of the industry.

Goldman Sachs Investment Partners—the firm’s first fully-fledged long/short equity fund—could debut on Jan. 1 with as much as $10 billion, easily surpassing the record set last year by Menlo Park, Calif.-based Makena Capital Management, whose first fund raised $7 billion at launch. They will be assisted by more than 40 staffers from the prop. desk.

GSIP is headed by Raanan Agus, the former chief of Goldman’s proprietary trading desk, and Kenneth Eberts, who ran the firm’s U.S. investments.

According to a marketing document obtained by Bloomberg News, the two-times-levered fund will invest three-quarters of its assets in long/short equity and 5% in event-driven. The fund will also put 10% each into corporate credit and private equity side-pockets for illiquid investments. Most of the investments will be in the U.S., though as much as 30% will be dedicated to Asia.

According to back-testing done by Goldman, the fund would have returned about 18% annualized since 2004. GSIP will charge a 2% management fee and 20% performance fee.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.