A New Year and Goldman Sachs is still having hedge fund troubles

Dealbreaker reports that the bank’s latest hedge fund - Goldman Sachs Investment Partners - is down 6 per cent for January. According to someone familiar with the results, anyway.

Considering that GSIP is a stock picking fund - if true - that’s fairly explicable, though not exactly excusable.

The DJIA was down 4.7 per cent over the same period, the S&P 500 down 5.92 per cent and the Nasdaq down 10 per cent. Which makes GSIP’s returns index-correlated and all the more depressing for it.

As one DealBreaker reader points out: a beta factory dressed up as a hedge fund.

GSIP is run by Goldman’s former global prop trading chief Raanan Agus and former US prop trading head Kenneth Eberts. What’s more, coming in at around $7bn in size at launch it’s the largest start-up in the history of the industry.

http://ftalphaville.ft.com/blog/2008/02/04/10681/goldmans-7bn-beta-factory/

Hum....seems to be never ending story...

 

The Golden Sack is leaking money. Good luck getting some of it.

 

I wouldn´t be surprised if rest of Wall Street is waiting for "payback" time in regard to talking monotonously the market down...you know the kind of news their PR division is making over hours..."recession" here, "recession" there...subprime lending aftremath here and there...

 

The proprietary traders at GS wouldn't be privy to any of that!