Goldman to keep Alpha fund going

Goldman Sachs Group Inc.’s Global Alpha hedge fund managers last night sent a letter to investors confirming their intent to keep the fund open. In a letter obtained by the Wall Street Journal, Mark Carhart and Ray Iwanowski, the fund’s managers, confirmed their intent to keep the fund open and adjust their management method, but will not inject Goldman’s own money to support the fund. The flagship fund — invested in stocks, bonds currencies and commodities globally — is currently valued at $6 billion, down from $10 billion last year. It has steadily declined this past year, falling 33.4% compared to last year’s 9% decline. In August alone the fund dropped a staggering 22.7%, published reports said. The letter did not offer apologies for their management methods; indeed, it defended the computerized approach that has resulted in extensive losses for their investors, the Wall Street Journal said. Goldman Sachs declined to comment.