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Too Many Funds Tried To Lose As Much Money As Goldman Alpha

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The extent of the bloodbath at Goldman Alpha in August - a 22.5% loss. The excuse - too many quant funds making the same trades. So what Goldman Alpha is saying is that its strategy of losing enormous quantities of money was emulated by too many other funds. That has been a problem. No? Actually we have no clue, but it seems like Goldman's excuse should just be - we made a ton of really stupid trades at the wrong time.
Goldman Alpha has lost a third of its value this year, and 44% from its peak in March 2006.
Other notable August "imitators" of Goldman Alpha -
-Red Kite Metals (the largest hedge fund with a metallic sheen) - down 20%
-Old Lane LP - down 5.9%
-The Renaissance Institutional Equities Fund - down 8.7% in the first 8 days of August, but then made the 8.7% back in the rest of the month - making the same trades as other hedge funds making money
Goldman's Global Alpha Fund Fell 22 Percent in August [Bloomberg]



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