On Second Thought

Goldman Sachs has agreed with its clients’ assessment of Global Equity Opportunities, which is that the fund is, how to put this, a big fucking failure. The bank has taken back $1.8 billion of the $2 billion it used to bail the fund out last summer, which was GS’s effort to say to investors, “Hey, guys, this fund is good. To prove it to you, we’re going to stick our own coin in it as well and pray to god we don't lose too much.”
But damn those smartass clients, they didn’t fall for it, and continued to ask for their money back. Which made Goldman think, “Hey, maybe they’re on to something?” and follow in suit. The other big name brought in to stick a guarantee on the box, Eli Broad, has pulled the $1 billion he put up as well. The fund is now down to $1.2 billion in net assets, from $5 billion at the start of August.
Goldman Reclaims Most Of $2bn Rescue Funds [FT]