Global Alphaâs Carhart Promoted At Goldman February 6, 2008 In spite of the dismal performance of his hedge fund, Goldman Sachsâ Mark Carhart is getting a promotion. But that promotion is getting a rude welcome from an important client. The Massachusetts Pension Reserves Investment Trust, in a memorandum yesterday, revealed that Carhart is to become co-chief investment officer of Goldmanâs quantitative equity group, with eventual plans to succeed his co-chief, Robert Jones. Carhart is best-known as the head of the firmâs quantitative strategies group, and as the co-portfolio manager of Goldmanâs flagship hedge fund, Global Alpha. Unfortunately for Carhart, the Bay State also revealed its response to the changes at Goldman, terminating its contract to run a $1.2 billion âenhanced equityâ portfolio for the pension fund. âIt all comes down to confidence in the managers,â Stan Mavromates, chief investment officer of the pension fund, said at a meeting yesterday. âThey are having significant management changes. We feel very uncomfortable with those changes.â Global Alpha, once dubbed the Cadillac of hedge funds, suffered a disastrous 2007, losing 40% as its quantitative models failed to handle the wild market volatility. It was the second straight down year for the fund, which had previously known nothing but success. As part of the changes, Carhartâs group will be merged into the larger quantitative equity group, which manages some $130 billion. In addition, the group has fired 20 people. http://www.finalternatives.com/node/3484
The group fired 20 people ? I thought Quants are enjoying a "crisis" - free job...??? What happened - no reversion to the mean ?