Global Alpha: We’re Not Dead Yet

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Rumors is rumors, as we say. Nothing more. But nothing less. And sometimes rumors move markets. This morning Bloomberg reported that shares of several European companies that have invested in Goldman Sachs were under pressure from rumors that Goldman’s Global Alpha hedge fund was nearing a meltdown. And now Goldman Sachs is doing its best to quash the rumors and denying that it is liquidating the fund.
So what's going on? Beats us. Other people might want to make you rich. We just want to make you better informed. And sometimes that means keeping you up on what people are whispering about even when we can't vouch for the substance of the rumors.
On thing is clear: there certainly is a lot of fear out there. Wall Street has been awash in rumors large hedge fund failures in recent weeks. Many have proved unfounded. A few months ago this sort of thing might have been laughed off. But after the collapse of two prominent Bear Stearns funds and the failure of Sowood, these sort of things are increasingly credible.
Goldman Denies Global Alpha Liquidation Rumors [FinAlternatives]

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