Goldman's Stock-Picking Hedge Fund Raises $7 Billion

Jan 18 2008 | 8:02am ET

Goldman Sachs’ latest hedge fund may be the largest launch in the history of the industry, but it needed help.

The Wall Street giant’s new Goldman Sachs Investment Partners fund raised $7 billion, the Financial Times reports. The figure is lower than the rumored $10 billion it supposedly garnered last month, but higher than its original target of between $4 billion and $6 billion. But to match the figure raised by Menlo Park, Calif.-based Makena Capital Management last year—and bolster Goldman’s battered hedge fund reputation—GSIP required as much as $2 billion of Goldman’s own capital, according to investors.

GSIP is the firm’s first stock-picking hedge fund, run by former global proprietary trading chief Raanan Agus and former U.S. prop trading head Kenneth Eberts. The firm’s other hedge funds are quantitative offerings, and suffered terribly amid last year’s credit crisis and market volatility.

Goldman is also currently raising capital for its new Mortgage Credit Opportunities fund, which aims to take advantage of the subprime mortgage markets that wreaked havoc on its other hedge funds.


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Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

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