Goldman's lead hedge fund takes hit

Global Alpha, Goldman Sachs’ flagship hedge fund, fell 3.4% during the first four months of this year.
MAY 30, 2007
Global Alpha, Goldman Sachs’ flagship hedge fund, fell 3.4% during the first four months of this year. The fund was dented by losses in the currency markets, according to Bloomberg. Meanwhile, the average hedge fund gained 4.9% in the same period, according to data from Hedge Fund Research Inc. of Chicago. Global Alpha, a $10 billion fund, has lost 12% since 2005, a year when it gained 40% and attracted more than $3 billion, reports said. Market-neutral investments in fixed-income and equity markets also took a bite out of Global Alpha’s returns, according to Bloomberg. Mark Carhart and Raymond Iwanoski, the managers behind Global Alpha, have taken a cut in their management fees, thanks to the fund’s sluggish performance, Bloomberg said. Typically, they collect 1.5% to 2% of the assets.

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