Goldman Sachs (GS) to Shutter Marred Fund
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Goldman Sachs (NYSE: GS) is making a real effort to improve it's fund-management unit by first cutting out all of the fat.
The bank announced it is shutting the Global Alpha fund.
At one time, the fund was the largest hedge fund at Goldman, with about $11 billion assets in 2007. In a sign of the times, however, investors have pulled out assets over the last few years, dwindling holdings to $1.7 billion at the end of June.
In a letter to investors earlier in the week, Goldman said it will stop charging fees at the end of September, and finish liquidating most assets in the fund by mid-October, Bloomberg reports Friday morning.
The Global Alpha fund was down about 12 percent in 2011 through August, Reuters reported Thursday. The fund has been shrinking since 2007, when it lost 40 percent on bad currency, equity, and bond bets. In March 2009, the fund's co-managers Mark Carhart and Raymond Iwanowski quit, leaving Katinka Domotorffy to take over the unit.
Goldman's letter said 85 to 90 percent of the funds assets will be distributed, but claims against Lehman Brothers Holdings may take longer, and the fund might have liabilities to Lehman as well.
Shares of Goldman are trading about 0.2 percent stronger Friday morning.
The bank announced it is shutting the Global Alpha fund.
At one time, the fund was the largest hedge fund at Goldman, with about $11 billion assets in 2007. In a sign of the times, however, investors have pulled out assets over the last few years, dwindling holdings to $1.7 billion at the end of June.
In a letter to investors earlier in the week, Goldman said it will stop charging fees at the end of September, and finish liquidating most assets in the fund by mid-October, Bloomberg reports Friday morning.
The Global Alpha fund was down about 12 percent in 2011 through August, Reuters reported Thursday. The fund has been shrinking since 2007, when it lost 40 percent on bad currency, equity, and bond bets. In March 2009, the fund's co-managers Mark Carhart and Raymond Iwanowski quit, leaving Katinka Domotorffy to take over the unit.
Goldman's letter said 85 to 90 percent of the funds assets will be distributed, but claims against Lehman Brothers Holdings may take longer, and the fund might have liabilities to Lehman as well.
Shares of Goldman are trading about 0.2 percent stronger Friday morning.
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