Troubled Goldman fund on upswing

Goldman Sachs's Global Equity Opportunities hedge fund gained 12% last week after the firm injected it with $3 billion in cash.
AUG 23, 2007
Goldman Sachs Group Inc.’s Global Equity Opportunities hedge fund gained12% last week after the firm injected it with $3 billion in cash, Bloomberg said. Once the firm added $2 billion into the fund, plus another $1 billion from investors, including billionaire Eli Broad, Global Equity’s assets more than doubled to $7.5 billion, fund investors told Bloomberg. Earlier this month, the fund lost 30% in value as the stock market went on a wild ride and threw quantitative funds, such as Global Equity, for a loop. As the markets calmed, so did the quant funds. The news isn’t so great for Goldman’s flagship Global Alpha fund, which received no support from the firm, Bloomberg said. Global Alpha’s value fell 27% this year through Aug. 13, prompting clients to ask for $1.6 billion in redemptions, investors told Bloomberg. Mark Carhart and Raymond Iwanowski manage both funds.

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