Goldman Sachs’ latest hedge fund, which was the largest launch in the history of the industry, had a rough first month. The fund is down 6% for January, according to a source familiar with the results.
Goldman Sachs Investment Partners fund recently raised $7 billion, according to a report in the Financial Times. The figure was substantially lower than the rumored $10 billion that had been whispered about in December but higher than the target of between $4 billion and $6 billion. Unlike Goldman’s quant driven offerings, GSIP is a stock-picking hedge fund—the first of its kind at Goldman. It is run by former global proprietary trading chief Raanan Agus and former U.S. prop trading head Kenneth Eberts.
January was reportedly a rough month for many hedge funds of all variety of investment strategies.
We totally forgot to ask Goldman Sachs about this when we were badgering them about the now debunked layoff rumors earlier today.
Posted by , Feb 01, 2008 2:28PM
YESSSSSSSSS! graphics are BACK!
(ps first)
Posted by , Feb 01, 2008 2:39PM
This sort of proves that GS's Prop. Trading made money through client flow information and cheating. Most GSAM mutual funds suck, even Fidelity has better returns
Posted by , Feb 01, 2008 2:49PM
it was a rough month for equities...
considering the DJI fell 4.7% in Jan, and S&P 500 down 5.92% and Nasdaq down 10.07%, that means GS is roughly inline with the indexes
Posted by NSD , Feb 01, 2008 2:56PM
@2:49 - Do you pay 2 and 20 for index correlated returns?
Posted by TDK , Feb 01, 2008 3:06PM
A little shocked given the background and pedigree of the fund, both now and historically. But it does give a little credence to the idea that GS prop is given an unfair advantage through their client flow business. I know that I don't even talk to the distressed side of the house, it's obvious they're using info against you when making prop bets. That said, wouldn't read too much into this, I'm sure they will recover
Posted by , Feb 01, 2008 3:07PM
... which means that their hedge fund is a p.o.s. beta factory dressed up as a hedge fund
Posted by , Feb 01, 2008 3:09PM
Yep, GS funds toss salad, pathetic bastards.
Posted by , Feb 01, 2008 3:10PM
THe best advice I can give is avoid doing business with Goldman Sachs whenever possible. I'm willing to buy new deals they bring to market but I would almost never trade with them unless it is absolutely necessary. One of the worst counterparties on the street.
Posted by , Feb 01, 2008 3:11PM
you hear that muffie? GS, it aint no HBS that's for sure.
Posted by @2:49 , Feb 01, 2008 3:15PM
NSD, no i don't. but then again, in a long-only fund that may be leveraged, losses can be outsized (as would be the gains presumably).
Posted by jag , Feb 01, 2008 3:19PM
Sweet, they underperformed my Vanguard Total Stock Index fund.
Posted by DWE , Feb 01, 2008 3:21PM
They are not a long only fund, they are a long/short global opportunistic fund. These results definitely suck if true, it means they were way to levered long coming into the year
Posted by hedger , Feb 01, 2008 3:32PM
They were uncorrelated with bond and commodity indices, does that count for something?
Posted by Lloyd "The 'Roid" Blankfizein , Feb 01, 2008 3:36PM
• 1.6 billion Chinese are angry with Goldman Sachs. Sounds like a fair fight.
• The only reason you're conscious right now is because Goldman Sachs doesn't want to carry you.
• Killing Goldman Sachs doesn't make it dead. It just makes it angry.
• There were originally five horsemen of the apocalypse. Goldman Sachs said it would travel by foot.
• Goldman Sachs sleeps with a gun under its pillow. But he could kill you with the pillow.
• A Priest, a Rabbi, and a Minister walked into a bar... and Goldman Sachs is going to find out why...
• Goldman Sachs has no friends, because as a child when it would play cops and robbers, the robbers would all be interogated and killed.
• When life hands Goldman Sachs Lemons, it kills Terrorists. Goldman Sachs fuckin' hates lemonade.
• When Maria Bartiromo lost her virginity, Goldman Sachs found it and put it back.
• Goldman Sachs has been to Mars. Thats why there's no life on Mars.
• On Goldman Sachs Tax Returns, it has to claim the entire world as its dependants.
• Goldman Sachs can eat just one Lay's Potato Chip. Don't tell Goldman what it can't fucking do.
• Superman has Goldman Sachs pajamas.
• Goldman Sachs is the reason Waldo is hiding.
Posted by Paul Ron , Feb 01, 2008 3:45PM
• 1.6 billion Chinese are angry with RON PAUL. Sounds like a fair fight.
• The only reason you're conscious right now is because RON PAUL doesn't want to carry you.
• Killing RON PAUL doesn't make it dead. It just makes it angry.
• There were originally five horsemen of the apocalypse. RON PAUL said it would travel by foot.
• RON PAUL sleeps with a gun under its pillow. But he could kill you with the pillow.
• A Priest, a Rabbi, and a Minister walked into a bar... and RON PAUL is going to find out why...
• RON PAUL has no friends, because as a child when it would play cops and robbers, the robbers would all be interogated and killed.
• When life hands RON PAUL Lemons, it kills Terrorists. RON PAUL fuckin' hates lemonade.
• When Maria Bartiromo lost her virginity, RON PAUL found it and put it back.
• RON PAUL has been to Mars. Thats why there's no life on Mars.
• On RON PAUL Tax Returns, it has to claim the entire world as its dependants.
• RON PAUL can eat just one Lay's Potato Chip. Don't tell Goldman what it can't fucking do.
• Superman has RON PAUL pajamas.
• RON PAUL is the reason Waldo is hiding.
Posted by jag , Feb 01, 2008 3:46PM
# When the Boogeyman goes to sleep every night, he checks his closet for Lloyd Blankfein.
# Goldman Sachs analysts don't read 10-Ks. They stare them them down until they get the information they want.
# There is no invisible hand. Just a list of companies Goldman Sachs has allowed to live.
# Goldman Sachs traders made infinite profits - twice.
# Goldman Sachs doesn’t wear a watch, THEY decide what time it is.
# Remember the Soviet Union? They decided to quit after shorting Goldman Sachs.
# If you have five dollars and Goldman Sachs has five dollars, Goldman Sachs has more money than you
# Apple pays Goldman Sachs 99 cents every time they sell a song.
# Contrary to popular belief, America is not a democracy, it is a GoldmanSachsoracy.
Posted by I Support Ron Paul , Feb 01, 2008 3:49PM
Thank God there is another Ron Paul fan here who loves freedom and America as much as I do.
Posted by hey there , Feb 01, 2008 4:00PM
When goldman sachs gets thirsty it orders Mike's hard lemonade
Posted by anon , Feb 01, 2008 4:07PM
Maybe they were long big cap tech and some em/commod stuff and short small caps and financials. That trade kinda blew up the second part of the month.
Posted by Hans , Feb 01, 2008 4:09PM
How do they start the Goldman Sachs Marathon? The race organizers attach a penny to a truck and watch employees run after it...
Best fringe benefit of GS: rhinoplasty.
Posted by Anal_yst , Feb 01, 2008 4:23PM
Question:
If goldman f$cks their client's so badly, and with such frequency and regularity, then why do they still have said clients?
Money talks, sh!t walks
Posted by anon anon anon , Feb 01, 2008 4:28PM
Everyone wants to be Goldman Sachs; even Goldman Sachs wants to be Goldman Sachs.
Posted by , Feb 01, 2008 4:33PM
Analyst, how come GS makes majority of revenue from principal trading instead of client trading?
Posted by , Feb 01, 2008 4:34PM
that trade should be down double the market then
@3:32 "GSIP is a stock-picking hedge fund". so, no.
Posted by Anal_yst , Feb 01, 2008 4:57PM
@ 4:33
Yet they're still able to raise $ for a massive fund, in the wake of massive losses at other supposedly "top-rate" funds, on top of having a notorious reputation for royally screwing their clients by peekin their flow and trading in front of them, etc...
Posted by poopie mcpoopington , Feb 01, 2008 6:34PM
All of GS' trading profits outside of Goldfinger's distressed debt was related to order flow. HTF are they going to earn in this environment?
McGoldrick will be made a FIG partner by the end of the first quarter.
Posted by poopie mcpoopington , Feb 01, 2008 10:01PM
They once made GoldmanSachs toilet paper, but it wouldn't take shit from anybody.
Posted by lsbumblebee , Feb 01, 2008 11:17PM
i just love how cramer (goldman sachs) kudlow (goldman sachs) paulson (goldman sachs) rubin (goldman sachs) ad nauseum keep telling us to buy equities. what a wonderful free market free enterprise free speech free country this really is.
Posted by Anal_yst , Feb 02, 2008 11:54AM
What happened to that Goldfinger (or whatever) guy from the distressed/special situations group @ goldman? Didn't his non-compete end in december or something?
Posted by so much smar , Feb 02, 2008 5:32PM
you got it wrong on kudlow. but then this wont be the first time you've been wrong
asshat
Posted by , Feb 02, 2008 6:08PM
Vote for Mike Huckabee!
I like Mike!
Posted by , Feb 04, 2008 8:16AM
MHL = Mike Huckabee's Lemonade?
Posted by GS BS , Feb 04, 2008 9:47AM
Talk about leading idiot donkeys with the rotten carrot... thats what GS does to its employees....
bunch of spineless twats