Goldman Sachs Flagship Hedge Fund Declined 5.7% in February By Jenny Strasburg http://www.bloomberg.com/apps/news?pid=20601087&sid=a0boyascuB6o&refer=home April 3 (Bloomberg) -- Goldman Sachs Group Inc.'s Global Alpha hedge fund lost 5.7 percent in February, hurt by wrong-way bets on stocks, global bonds and currencies including the Japanese yen. The decline left the $10 billion fund down 2 percent for the year through Feb. 28, according to a letter sent to investors this week from Eric Schwartz and Peter Kraus, co-heads of New York-based Goldman's money-management division. Global Alpha, Goldman's largest fund, fell about 9 percent in 2006. It was the first decline in seven years and followed an almost 40 percent gain in 2005. Goldman's hedge-fund assets rose 48 percent to $32.5 billion in 2006, making it the second-largest U.S. hedge- fund manager behind New York-based JPMorgan Chase & Co., according to a survey by Absolute Return magazine. JPMorgan managed $34 billion at the end of December. Goldman spokesman Christopher Williams declined to comment. Hedge funds are private, largely unregulated pools of capital whose managers can buy or sell any assets and participate substantially in profits from money invested.