Goldman's Global Equity Fund Gets $3 Billion in New Capital

[ASusilovic]

Goldman Sachs Group Inc. and investors including C.V. Starr and Perry Capital LLC will invest $3 billion in the firm's Global Equity Opportunities Fund after it fell 28 percent in August.

``We believe the current values that the market is assigning to the assets underlying various funds represent a discount that is not supported by the fundamentals,'' New York-based Goldman said today in a statement. `` The investment will also provide the fund with more flexibility to take advantage of the opportunities we believe exist in current market conditions.''

The fund's assets declined to $3.6 billion from more than $5 billion in assets in July.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aTetbvaKRVNQ&refer=home

Liquidity crisis ? What liquidity crisis ??? Ha, ha, ha....

 

[bidask]

how does the cash injection work exactly? the original investors of the fund get their money back, and the new investors get a percentage of future fees? seems like the fund is just getting more investors, in which case it's not really a "cash injection" like the cash is going on the balance sheet or something.

 

[Cdntrader]

Quote from bidask:

how does the cash injection work exactly? the original investors of the fund get their money back, and the new investors get a percentage of future fees? seems like the fund is just getting more investors, in which case it's not really a "cash injection" like the cash is going on the balance sheet or something.

good money after bad - probably reducing leverage in the fund aka margin call.

 

[Dogfish]

Goldman's Viniar says their Geo fund had a drop in the "low 30 percents" this year and their aplha fund - down 27% YTD "mostly in last week"