Ex-Global Alpha Head Founds Alternative Beta Hedge Fund

Oct 16 2009 | 2:31pm ET

Six months after his departure from Goldman Sachs’ flagship hedge fund, Mark Carhart is getting back into the alternative investments business.

Carhart, who, along with Raymond Iwanowski, managed Goldman’s Global Alpha fund to unprecedented success before hitting the skids three years ago, plans to raise $1 billion for a new alternative beta hedge fund, he told Reuters.

Carhart’s new fund is set to launch next year; his non-compete agreement with Goldman doesn’t expire until April. Like Global Alpha, the new fund will employ a quantitative strategy. But unlike many quant funds, the new vehicle will target risk premiums, rather than market inefficiencies, Carhart said.

“It’s meant to supplant a large portion of hedge funds which don’t have as much alpha as they do a lot of embedded beta,” Carhart told Reuters.

Carhart is targeting institutional investors with the new “exotic beta” fund, and hopes to build it assets to as much as $5 billion.

Carhart, who in addition to running Global Alpha was co-chief investment officer of Goldman’s quantitative equity strategies group, and Iwanowski retired from Goldman in April, along with Giorgio De Santis, co-head of research at the quant group. It is unclear if either man will join Carhart’s new firm.

Their departure came after Global Alpha’s run of unprecedented success  came to a crashing halt in 2007. The once-$12 billion lost 40% that year, and continued to lose money and assets last year into this year.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

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.

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.