Remember the days when Goldman Sachs executives could say “volatility is our friend?” Well, it looks like the friendship has broken up.
Goldman’s North American Equity Opportunities has been liquidating its positions in the face of heavy losses, according to a report just published by the Wall Street Journal. It is not clear how significant the liquidation is. There are widespread rumors that the fund may be selling off everything and shutting down. But Goldman has “privately thrown cold water on a published report that North American Equity Opportunities hedge fund is liquidating,” according to the Journal.
The Journal notes that the fund, which at had assets of $767 million earlier this year, was down over 15% year through July 27. Loses in July alone are said to have been around eleven percent. Given the market’s volatile behavior in August, it’s likely that losses have continued to mount and may have become much, much worse.
The same report from the Journal says that another quant fund, Tykhe Capital, has suffered losses of about 20% in August alone.
Oh yeah, and Goldman says that Global Alpha isn’t shutting down either. It’s liquidated certain positions to pare back its risk profile but it’s not done yet.
Second Goldman Hedge Fund Moves to Sell Some Positions [Wall Street Journal]
Goldman:”business as usual” at shrinking Alpha fund [Reuters]
Comments (18)
Leave a comment
You can log in with your account or comment as a guest below.
I love how “business as usual” at Goldman has come to mean -15% in a month. Uh buh bye
Tykhe was founded by some old DE Shaw guys. If they’re having trouble then maybe Millenium, Thales, Cantillon and Shaw are getting hit hard as well?
(Not that they’re all stat arb shops but they all seem to have similar performance)
Rumor has it they’re down another 5% so far this month
Hey. We are getting a littled hacked at the trading community taking our good names and attaching them to money losing trading ventures. Why don’t you boneheads pick names like “Lohan” or “Hilton” or “Nolte”?? “Nolte Capital Management” sound much better for the current times than “Tykhe” for god’s sake. Tykhe is such a hot goddess, too! I’m sure those young hedge fund dips (you know, the idiots wearing “fauxhawks” and Bluetooths) will hear from her lawyer, Athena, who is meaner than a junk yard dog.
Thanks for listening,
Zeus
Zeus – I thought you were old school. A quick lightning bolt or two used to be your style. What’s with the lawyers? Don’t get soft. Christ my liver hurts.
Attn: Quants
Please leave borrowing and lending to us Hebes. We know what we’re doing(check our track record over the last, say, few thousand years). Every time you rocket scientists get involved you fuck it up for everybody.
Its a blood bath out here. The chinese are invading from the north buying up shitty stocks left and right ruining perfectly good shorts. Meanwhile all of the Europeans are of vacation and their idea of quant fund is a HP calculator hooked up to a fax machine. They’re blowing up right and left.
Head for the hills, folks its all over, its all over! Somebody call the FED, they’re gonna need to bail out all of America! YOU DON’T KNOW WHAT ITS LIKE OUT HERE, YOU DON’T KNOW WHAT IT’S LIKE.
Sccop please?
http://www.marketwatch.com/news/story/liquidation-big-portfolio-triggers-turmoil/story.aspx?guid=%7B9562090F%2D2CC0%2D4EE2%2DACBF%2D2688F60061DA%7D
Holy underwear!
Sheriff murdered!
Innocent women and children blown to bits!
We’ve got to protect our phony baloney jobs, gentlemen.
We must do something about this, immediately, immediately, immediately!
TO:Jacob Schiff
Hate to break it to you but most quants ARE heebs (note different spelling)
Taggart: Let’s kill every first born male child in Rock Ridge.
Hedley Lamarr: Nah, too Jewish.
Don’t hate on Mr Schiff he’s a ibanker, doesn’t get out much ya know, especially out of touch with inner workings/staffing of quant shops.
JOBS
Steve Jobs foresaw this whole thing.
JOBS
Thank you Verizon for reminding me to always download music legally in the banner ad @ the top of the page.
Thank you Verizon for reminding me to always download music legally in the banner ad @ the top of the page.
Goldman joins other investment banks managing hedge funds that have struggled during the recent market turbulence.
These Investment banks think that to manager a hedge fund is simple, just click some enter keys that the computer do the work…
>s