Goldman Moves To Boost Alternatives Business

Feb 1 2008 | 12:48pm ET

Goldman Sachs has moved about half of its wildly successful principal strategies group—and half of the money they were running—into its asset management division in an effort to boost its alternative investment offerings.

The Wall Street giant last month launched its first stock-picking hedge fund, run by former proprietary trading desk chief Raanan Agus and former U.S. prop desk head Kenneth Eberts. The two took roughly 40 of their staffers with them to Goldman Sachs Investment Partners, which was one of the largest hedge fund launches in history at $7 billion. About $2 billion of that is said to be Goldman’s own money.

The move of half of its prop traders to Goldman Sachs Asset Management is part of an effort to restore the group’s flagging alternatives performance. Once exclusively the preserve of quantitative funds—most of which were badly battered by last year’s market volatility, including its flagship, Global Alpha—Goldman hopes to broaden its mandate.

Still, the decision leaves a gaping hole at Goldman: Its principal strategies group contributed almost $4 billion, or more than 8%, of the firm’s profit last year. In a regulatory filing announcing the move, Goldman said it planned to “replace the reassigned personnel and transferred assets.”


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

The yield curve and stock market response

Traders form habits quickly. Understanding these and their effects can better equip us to decipher actual market moves.

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.