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Shumway Capital Sells Stake To Goldman

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From Katherine Burton:

Chris Shumway sold an 8 percent stake in his hedge-fund firm to a leveraged-buyout fund run by Goldman Sachs Group Inc., according to a letter sent to investors today.
Shumway Capital Partners LLC will use proceeds from the sale to help finance a partnership to include senior executives of the Greenwich, Connecticut-based firm, the letter said. Terms of the agreement with Goldman Sach's Petershill Fund were not disclosed.

"This investment brings us together with a leading Wall Street firm while allowing us the autonomy and ability to continue to manage our investment business in the same manner that we have since inception," Shumway wrote.


New York Times Columnist Disappointed Goldman Sachs Didn't Hang On To Stake In Sex Trafficking Company, Clean Up Shop With A Little Activism

On April 2, the Times ran a piece by columnist Nichholas Kristof entitled "Financiers and Sex Trafficking." Kristof wrote that he had figured out that a website called place where, among other things, those looking for underage girls and of age women forced into prostitution, can find them--is owned by "an opaque private company called Village Voice Media," which until recently was in part (16 percent) owned by Goldman Sachs. Upon being contacted about the matter, the "mortified" firm "began working frantically to unload its shares," all of which were sold several days later. Today Kristof went on CNBC to discuss the matter and while he can sort of see why the bank wouldn't want to be publicly associated with an "emporium for girls" (which he doubted top executives knew about), he can't help but feel that if Goldman really cared, it would have continued its relationship with the company and "used its stake to try to advocate for change within...rather than just selling back to management." Goldman's Ties To Sex Trafficking [CNBC via BI]