Goldman Shuts Down AQR 401(k) Fund

Apr 4 2008 | 2:00am ET

AQR Capital Management just can’t catch a break. The quantitative hedge fund shop, whose funds have been battered by market volatility over the past year, has now suffered the indignity of being deemed not good enough for 401(k) retirement accounts.

Goldman Sachs has decided to stop offering an investment account—specially created for it by AQR—based on the hedge fund’s Global Asset Allocation fund, Fortune reports. The 401(k) fund, Global Relative Value, was down 21% this year; the hedge fund on which it was based lost 16% through the middle of February.

Global Relative Value “has already begun unwinding positions in order to ensure an orderly liquidation and close of the fund on April 30,” Goldman wrote in a letter. Fortune reports that the liquidation has already been completed.

The Greenwich, Conn.-based firm, founded by ex-Goldman wunderkind Clifford Asness, has been one of the funds hardest hit by the market volatility set off by the subprime mortgage crisis. The $11 billion firm’s flagship was done almost 15% through the middle of February, after losing 12% last year.

RELATED ARTICLES:

AQR Funds Down Double-Digits In Early Going
AQR Flagship Down 12% YTD
AQR Denies Shelving IPO
AQR Blames Crowding For Losses, Says ‘Severe’ Rumors False


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of