Goldman buys 9.99% stake in Winton

Goldman Sachs Group Inc.'s new private-equity fund has purchased a stake in Winton Capital Management, a $10 billion London-based hedge fund manager, according to a Financial Times report. The fund, which purchased a 9.99% stake of Winton in July, is managed in London by former investment banker Jonathan Sorrell. While the price remains unclear, similar deals have valued hedge fund managers at between 5% and 17% of assets, which would value the Goldman stake at between $50 million and $170 million. A person cited in a Wall Street Journal report said that the fund wants to raise $500 million. The Goldman purchase comes as New York-based Morgan Stanley and New York-based JPMorgan Chase & Co. have become large investors in hedge funds by buying big equity stakes in their management companies. Some banks have purchased entire funds. Citigroup Inc., the New York-based financial services giant, for example, purchased the hedge fund Old Lane Partners LP earlier this year for $800 million (InvestmentNews, April 13) .