Goldman reportedly to create new hedge fund

Source: Exec Digital USA

Date :11/23/2007 10:09:37 AM

Goldman Sachs is aiming to raise $6 billion for what would be one of the biggest hedge fund launches ever, according to a report published Friday.

The investment bank reportedly told potential investors that it is aiming to raise $4 billion to $6 billion for the fund as it tries to restore its reputation in the hedge fund business, the Financial Times said.

Global Alpha, a so-called quantitative or computer-driven fund, suffered a 30 percent drop in its quantitative funds in August.

Hedge fund platform

The new fund will focus on selecting stocks rather than use quant methods, the newspaper reported.

“Goldman will create US and offshore versions of the fund, known as the Opportunistic Multi-Disciplinary Investment Fund, with a launch slated for January,” the FT said, with “aims to invest mainly in shares, taking long and short positions, with a focus on the US.”

In documents marketing the fund, Goldman said it was "looking to grow its hedge fund platform with a particular focus on fundamental equity strategies," the FT said.

November 23, 2007