Goldman Sachs pumps $3bn into troubled fund |
| Telegraph.co.uk - Aug 13, 2007 |
Goldman Sachs and various investors including Eli Broad, the US billionaire and philanthropist, have agreed to shore up one of Goldman Sachs' flagging quantitative hedge funds to the tune of $3bn (£1.5bn).
The investment banking giant admitted today that its Global Equity Opportunities fund has "suffered significantly" because of the recent market turbulence.
It also warned that two other quantitative funds, which base their investment decisions on complex mathematical calculations, have been hit by the ongoing market turmoil.
While quantitative funds often try to reduce risk by diversifying across sectors, they stand to lose out heavily when stocks fall across the board. These losses can be amplified if, as is the case here, the funds have borrowed money to bolster their investments.
Read Full Article from Telegraph.co.uk
- Posted: 2007-08-13 10:38:04
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