Tuesday, 30 September 2014
Last updated 15 min ago
Mar 27 2008 | 2:22pm ET
Just six months after leading a bailout of one its quantitative hedge funds, Goldman Sachs is following its investors by pulling most of its investment out.
The firm has withdrawn $1.8 billion from its Global Equity Opportunities Fund, the Financial Times reports. In August, the firm led a $3 billion capital injection, which included $1 billion from investor Eli Broad and hedge fund Perry Capital, as well as $2 billion of its own money, to shore up the fund, which like its fellow quants was beset by big investment losses and redemption requests. Broad and Perry have withdrawn their investments, as well.
Goldman is maintaining a $200 million investment in the fund, which now manages just $1.2 billion, down from more than $5 billion before it posted huge losses during this summer’s market turmoil. It withdrew the bulk of its investment at the end of last month, its first chance under the terms it set in making the investment in August.
The firm told investors in GEO of its redemption last week.
Goldman reportedly has no plans to liquidate the fund—earlier this year the firm closed one of its other troubled quant funds, North American Opportunities—hoping instead that improving performance can keep the fund going. Soon after its bailout, the fund posted big gains, returning as much as 15% in the weeks following the capital infusion. Much of that gain was lost through the rest of the year, but Goldman still profited from its bailout: The onshore version of the fund earned Goldman a 6% return, while the offshore version earned it a more modest 3.7%.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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…
The trading world is inundated with strategies and techniques. Here’s one way traders can get a handle on information overload.