Goldman's Global Alpha fund down
Goldman Sachs Group’s Global Alpha hedge fund fell almost 12% in the two weeks ended August 3, bringing this year’s decline to 16% after losses in stocks and bonds.
By Agencies |
NEW YORK: Goldman Sachs Group’s Global Alpha hedge fund fell almost 12% in the two weeks ended August 3, bringing this year’s decline to 16% 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% in 2006, said two investors in the fund. Global Alpha’s performance has reduced the fees paid to New York-based Goldman. The biggest US 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 collapsed and Sowood Capital Management is shutting down after a 60% 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% during the last full week of July, hurt by declines in investment-grade credit and US stocks, said the investors who declined to be identified.
The fund fell 9% in July, net of fees, they said. The fund had another 3% drop during the first three days of August as the Standard & Poor’s 500 Index fell 1.5%.
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 collapsed and Sowood Capital Management is shutting down after a 60% 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% during the last full week of July, hurt by declines in investment-grade credit and US stocks, said the investors who declined to be identified.
The fund fell 9% in July, net of fees, they said. The fund had another 3% drop during the first three days of August as the Standard & Poor’s 500 Index fell 1.5%.
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