Goldman pulls plug on AQR account

Discussion in 'Wall St. News' started by ASusilovic, Apr 4, 2008.

  1. NEW YORK (Fortune) -- After months of poor performance, Goldman Sachs has stopped offering an investment account that AQR Capital Management created for the bank's 401(k) lineup.

    According to a letter written by Goldman Sachs, that fund "has already begun unwinding positions in order to ensure an orderly liquidation and close of the fund on April 30." People close to the matter say that the process has been completed.

    The 401(k) fund - Global Relative Value - was designed to be a relatively low volatility investment based on the strategies used by AQR Capital Management's Global Asset Allocation hedge fund. According to a Bloomberg report, Global Asset Allocation was down 16% in the first six weeks of this year.

    The fund in the Goldman 401(k) has lost 21% of its value from the beginning of this year to the date of termination. (See correction at end of story.)

    Although small when compared to AQR's total $8.6 billion hedge fund portfolio, Global Relative is among several AQR funds and accounts that have tanked since the credit crisis hit last summer. The firm's hedge fund assets under management have shrunk from about $11 billion at the beginning of 2007.
  2. Minus 21% = wankers who can't really trade.

    What did Buffet say? When the tide goes out you can see who was swimming naked (confusing leverage with brains).
  3. Suss-----they'll start a "new" fund based on the old strategy soon. :p