Don’t Call It A RescueAnd Don’t Ask Why The Fees Are Being Slashed Either

Author:
Publish date:

Bloomberg reports today that the fees for the new non-bailout, non-rescue investors in Goldman Sachs’ GEO fund are being slashed or waived entirely.
“New participants won't pay the 2 percent management charge and Goldman will cut its performance fee in half,” Christine Harper and Katherine Burton report. A spokesman for Goldman has confirmed.
This somewhat undercuts the case that Goldman was making yesterday that the injection of new money wasn’t a rescue for the fund but simply allowing investors to take advantage of market opportunities. Unless by new opportunities they meant "investing in our hedge fund at a tremendous discount."
Goldman Fund Cuts Fees to Woo Investors After Loss [Bloomberg]

Related