Yikes, worse than previously thought.
Goldman's Global Alpha Falls 26% in 2007, People Say (Update2)
By Katherine Burton and Jenny Strasburg
Aug. 10 (Bloomberg) -- Goldman Sachs Group Inc.'s $8 billion Global Alpha hedge fund has fallen 26 percent so far this year, which may prompt additional investors to withdraw their money, according to people familiar with the fund.
The decline in Goldman's largest hedge fund, managed by Mark Carhart and Raymond Iwanowski, follows a drop of about 9 percent in 2006, said the people, who declined to be named because the fund is private. The Standard & Poor's 500 Index of the biggest U.S. stocks has returned 3.6 percent this year.
``It's hard to imagine how investors can maintain confidence, because their losses have been taking place over a long period of time, starting last year,'' said Virginia Parker, who helps oversee about $1.8 billion at Parker Global Strategies LLC in Stamford, Connecticut. ``There has been a broad range of market climates, and the fund has not demonstrated the ability to excel in any of them.''
Quantitative, or ``quant,'' hedge funds in the U.S., including those run by Goldman, Highbridge Capital Management LLC and Tykhe Capital LLC, have lost money in August as credit spreads have widened and the stock-price volatility has jumped, jarring the computer models the managers use to make their bets.
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Full article here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aOux0yUHL3xw&refer=home
Goldman's Global Alpha Falls 26% in 2007, People Say (Update2)
By Katherine Burton and Jenny Strasburg
Aug. 10 (Bloomberg) -- Goldman Sachs Group Inc.'s $8 billion Global Alpha hedge fund has fallen 26 percent so far this year, which may prompt additional investors to withdraw their money, according to people familiar with the fund.
The decline in Goldman's largest hedge fund, managed by Mark Carhart and Raymond Iwanowski, follows a drop of about 9 percent in 2006, said the people, who declined to be named because the fund is private. The Standard & Poor's 500 Index of the biggest U.S. stocks has returned 3.6 percent this year.
``It's hard to imagine how investors can maintain confidence, because their losses have been taking place over a long period of time, starting last year,'' said Virginia Parker, who helps oversee about $1.8 billion at Parker Global Strategies LLC in Stamford, Connecticut. ``There has been a broad range of market climates, and the fund has not demonstrated the ability to excel in any of them.''
Quantitative, or ``quant,'' hedge funds in the U.S., including those run by Goldman, Highbridge Capital Management LLC and Tykhe Capital LLC, have lost money in August as credit spreads have widened and the stock-price volatility has jumped, jarring the computer models the managers use to make their bets.
-snip-
Full article here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aOux0yUHL3xw&refer=home
