A New Year and Goldman Sachs is still having hedge fund troubles.
Dealbreaker reports that the bank’s latest hedge fund – Goldman Sachs Investment Partners – is down 6 per cent for January. According to someone familiar with the results, anyway.
Considering that GSIP is a stock picking fund – if true – that’s fairly explicable, though not exactly excusable.
The DJIA was down 4.7 per cent over the same period, the S&P 500 down 5.92 per cent and the Nasdaq down 10 per cent. Which makes GSIP’s returns index-correlated and all the more depressing for it.
As one DealBreaker reader points out: a beta factory dressed up as a hedge fund.
GSIP is run by Goldman’s former global prop trading chief Raanan Agus and former US prop trading head Kenneth Eberts. What’s more, coming in at around $7bn in size at launch it’s the largest start-up in the history of the industry.