Goldman Sachs: Every Hack Attack Is Making Hedge Funds A Little Richer

Not saying hedge funds LIKE it when people get hacked, but...

Not as effective as it used to be.

Hacking: Everyone’s doing it. The Chinese. The Israelis. The Russians. The St. Louis Cardinals. And hedge funds, which tend already to be highly sensitive to matters data security, have noticed. Specifically, they’ve noticed that the likes of the White House Office of Personnel Management, the IRS, luxury Swiss hotels, JPMorgan Chase and the Houston Astros probably need to spend a few extra bucks on cyber-security, even if they don’t know it yet.

According to a Goldman Sachs Group Inc. report out Friday, hedge funds own 7% of the median cyber-security firm compared to 4% of the median technology company and 3% of the typical S&P 500 stock.

“The meteoric rise in cybersecurity incidents involving hacking and data breaches has shined a spotlight on this rapidly growing industry within the Tech sector,” Goldman said in its report. “Security spending and data safety improvements are at the forefront of management priorities.”

Hedge Funds Like Cyber-Security Stocks, Says Goldman [WSJ MoneyBeat blog]
Sex, lies and debt potentially exposed by U.S. data hack [Reuters]
St. Louis Cardinals Investigated by F.B.I. for Hacking Astros [NYT]