Saturday, 20 December 2014
Last updated 1 day ago
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.”
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.