Often described as the world’s largest hedge fund (though perhaps that’s JPMorgan), Goldman is about to have another little hedge fund of its very own.
In a first for the bank, the New York Times reports, Ranaan Agus, head of the equity prop trading desk at Goldman will move over to asset management to start a new fund. Part of his principal strategies team – the formal name for the prop desk – will join Mr Argus to start the fund, which insiders told the NYT could reach $10bn. The fund will raise money both from within Goldman and from outside investors.
The fund, through which Goldman can continue to put its own money in the hands of Mr Agus, as well as generating fees and offering a vehicle for its clients to invest in, will be the bank’s first large long-short hege fund.
Its other hedge offspring have occasionally seemed problem children of late. The bank’s volatile Global Alpha macro fund posted its first decline in seven years in 2006, and was hit but market ructions in February, falling 6 per cent in the month. Goldman also this year lost Nadja Pinnavai, head of hedge fund strategies for Europe and Asia who ran London-listed Dynamic Opportunities fund.