Goldman Sachs plays catch-up with hedge fund offering - News and Current Events | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

Goldman Sachs plays catch-up with hedge fund offering
Started:September 21st, 2012 (09:23 PM) by kbit Views / Replies:197 / 0
Last Reply:September 21st, 2012 (09:23 PM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Goldman Sachs plays catch-up with hedge fund offering

Old September 21st, 2012, 09:23 PM   #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,839 since Nov 2010
Thanks: 3,275 given, 3,321 received

Goldman Sachs plays catch-up with hedge fund offering

Reuters) - Goldman Sachs Group is taking a page from its Wall Street competitors in bringing a new hedge fund product to market.
The firm has begun offering its wealthiest customers the opportunity to invest in about a half-dozen hedge funds, according to regulatory filings, including well-known names like Brevan Howard and Jana Partners, without having to go to the funds themselves, which require much higher minimum investments.

The new offering, called Hedge Fund Select, is similar to products that other big brokers like Morgan Stanley, Citigroup Inc and Bank of America Corp's Merrill Lynch division have offered for many years.

But the model is new to Goldman, which has historically preferred to market its own hedge fund products, or steer customers into a so-called fund-of-funds that spreads money between an array of portfolios.

Over the years, some clients of Goldman have complained that the firm's own hedge funds have performed poorly, while its outside hedge fund offerings were not as robust as those at other Wall Street firms.

With the new arrangement, Goldman clients who have $25 million or more with the investment bank can invest in the funds on the Hedge Fund Select platform, according to a person familiar with the product. There is a minimum $500,000 investment in any single fund, and Goldman will earn a 1 percent fee on the money invested with any particular fund.

A big name hedge fund typically requires an investor to put in at least $1 million. A bank that boasts a hedge fund platform can reduce the minimum investment needed because it pools all its customers' money together into a single portfolio.

And Wall Street hedge fund platforms sometimes offer shorter redemption periods than the underlying funds.

So far, 10 funds have been incorporated for Hedge Fund Select, which Goldman began rolling out this summer. Regulatory filings with the U.S. Securities and Exchange Commission show that Goldman has begun raising money for five funds, and a person familiar with the situation said the firm may offer its customers as many as a dozen hedge funds to choose from.

Goldman spokeswoman Andrea Raphael declined to comment.

Goldman has been making subtle changes to its $836 billion asset management division for the past couple of years in an effort to boost profits as fees have declined and some of its own funds have struggled to produce big gains. Goldman Sachs Asset Management (GSAM) underwent a management overhaul last year and shuttered its Global Alpha Fund after the quantitative fund lost more than $10 billion from its 2007 peak.

The new hedge fund offering is being rolled out at a time when the hedge fund industry has lost its swagger as the smartest investors on Wall Street. Through the end of August, hedge funds gained around 4 percent, lagging well behind total returns of 13.5 percent in the benchmark S&P 500 index, according to Credit Suisse.

The effort by Goldman appears to be getting off to a slow start. An SEC filing reveals that a Hedge Fund Select portfolio that invests in a Brevan Howard fund had raised just $500,000 as of August. And a Hedge Fund Select portfolio that invests in an Eminence Partners Fund had raised $2 million.

Other managers on the Hedge Fund Select platform that have already raised capital include Bocage Global Resources, a commodity-focused fund run by former Caxton Associates trader Kurt Billick, and New York-based Select Equity Group, which specializes in trading stocks.

Corsair Capital and Brigade Capital Management have also registered an entity with the GSAM entity, according to a filing with the SEC.

The hedge funds Goldman is offering to its customers either declined to comment or were not immediately available for comment.

The new hedge fund offering is consistent with the terms of the Volcker rule, which allows Wall Street firms to offer hedge funds but limits the amount of firm capital that can be invested in those funds.

Exclusive: Goldman Sachs plays catch-up with hedge fund offering | Reuters

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > Goldman Sachs plays catch-up with hedge fund offering

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Why I Am Leaving Goldman Sachs Lornz Traders Hideout 28 April 21st, 2012 02:24 PM
A Fund Manager's Anger at Goldman Sachs Still Simmers Quick Summary News and Current Events 0 March 26th, 2012 06:30 AM
The world according to Goldman Sachs kbit News and Current Events 0 January 15th, 2012 11:38 AM
Presenting The Latest Hedge Fund Hotel: These Are The Most Beloved Stocks By Hedge Fu Quick Summary News and Current Events 0 November 25th, 2011 07:50 PM
Goldman Snubs US Investors in Facebook Share Offering Quick Summary News and Current Events 0 January 17th, 2011 09:40 PM

All times are GMT -4. The time now is 12:04 PM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-24 in 0.07 seconds with 19 queries on phoenix via your IP