GS Quant Fund Bounces Back

Goldman Sach’s Global Equity Opportunity hedge fund gained 12% last week, according to a Bloomberg report Thursday citing anonymous investors, after the fund was injected with $3 billion of capital, including $2B from Goldman. The fund was down about 30% in early August after computer models used by the fund succumbed to the market’s erratic movement and caused swift, heavy losses. Global Equity, along with other quantitative funds, such as Renaissance Institutional Equities Fund (who made back almost all of its early August losses), bounced back as the market rebounded and volatility lowered in the last week. Renaissance owner James Simons addressed the uncertainty created by the crisis in a letter to his investors: “Usually such behavior causes first pain and then opportunity…we anticipate the possibility of an attractive opportunity'' for the fund. Though Goldman instilled confidence by adding capital to the Global Equity Opportunity hedge fund, it chose not to increase the capital in its Global Alpha quant fund, which lost 27% during recent market upheaval. Clients of the Alpha fund responded by withdrawing $1.6 billion, leaving the fund with $6.8 billion. Both of the funds are managed by Mark Carhart and Raymond Iwanowski.

Sources: Bloomberg, MarketWatch
Commentary: Goldman Denies Hedge Fund Liquidation • Is the Game Over for Goldman's Quant Fund? • Goldman Sachs: Spin Doctors or Funds Managers?
Stocks/ETFs to watch: GS. Competitors: BSC, MS, LEH. ETFs: KCE, KBE, PJB
Earnings call transcripts: Goldman Sachs F2Q07

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Comments

[arbitragemp]

verrrrry impressive!!!!errrr ummmmm uhhhhh, who HASN't bounced back. here we go again. How about all the guys who did not get cloberred in the first place. Bounced back? You might refocus on their losses.

2007 Aug 24 10:37 AM