Goldman’s Global Alpha Fund Hurts Investors Again

Reuters – September 2011

NEW YORK, Sept 15 (Reuters) – Goldman Sachs Group Inc’s (GS.N) shakeup of management at one of its highest-profile hedge funds comes as the fund’s performance is badly lagging its competitors.

The Goldman Sachs Global Alpha fund, which relies on computer-driven strategies, was down 12 percent through August, according to two people familiar with the returns. The average quant fund is down less than 1 percent over that period, according to performance tracking service Hedge Fund Research Inc.

This is the second time in four years that the Global Alpha fund has suffered big losses and its performance raises questions about the ability of Goldman Sachs to manage quantitative strategies for its wealthy clients.

Full article is available here:  Reuters