and another... Goldman's Global Alpha Fund Fell 12% in Two Weeks, 16% in '07 By Jenny Strasburg and Katherine Burton Aug. 6 (Bloomberg) -- Goldman Sachs Group Inc.'s Global Alpha hedge fund fell almost 12 percent in the two weeks ended Aug. 3, bringing this year's decline to 16 percent after losses in stocks and bonds. This year's drop in the $9 billion fund, managed by Mark Carhart and Raymond Iwanowski, follows the loss of about 9 percent in 2006, said two investors in the fund. Global Alpha's performance has reduced the fees paid to New York-based Goldman. The biggest U.S. securities firm booked $700 million from the fund in 2006. The $1.7 trillion hedge-fund industry was roiled by losses in the credit and equities markets during the past two months. Two hedge funds managed by Bear Stearns Cos. collapsed and Sowood Capital Management LP, run by a former manager of Harvard University's endowment, is shutting down after a 60 percent loss. ``The fallout from June and July's credit rout is clearly resulting in some significant losses at a number of hedge funds,'' said Peter Plaut, senior analyst at Sanno Point Capital Management, a New York-based hedge fund firm. ``We are likely to see the losses result in redemptions.'' Goldman spokesman Christopher Williams declined to comment about the fund's performance. Global Alpha lost 8 percent during the last full week of July, hurt by declines in investment-grade credit and U.S. stocks, said the investors who declined to be identified. The fund fell 9 percent in July, net of fees, they said. The fund had another 3 percent drop during the first three days of August as the Standard & Poor's 500 Index fell 1.5 percent. To contact the reporter on this story: Jenny Strasburg in New York at firstname.lastname@example.org ; Katherine Burton in New York at email@example.com .