Goldman Gives Hedge Funds Another Shot

The problems at Goldman Sach’s flagship alternative asset vehicle Global Alpha have been well documented, but Goldman is not giving up on alternative strategies. Recent personnel changes in the Asset Managment division likely shook things up a bit. No doubt somebody there is running with a mandate, and they are going to give 2/20 another shot…

Goldman Sachs is creating a potential win-win situation itself with the launch of new hedge fund by star trader Raanan Agus. The yet-to-be-named fund, reports the International Herald Tribune, will be a bit unusual in that basically its an inside job: Agus, who heads the firms equity proprietary trading desk (which the firm calls principal strategies), will not follow the paths of his predecessors out the door to seek his fortune, but will relocate somewhere in the firm as part of GS asset management division, along with part of his current team. daily ii

In typical Goldman style, the fund raising goals are anything but modest:

Joining Agus in his new venture is Kenneth Eberts, who heads U.S. investments for principal strategies, the entire Tokyo-based principal strategies team and half of its U.S. counterpart. The new long/short fund, which will become another Goldman Sachs Asset Management product, could raise as much as $10 billion, mainly from Goldman Sachs, its private clients and outside investors, says IHT, citing people familiar with the fund.

With lines blurring at the brokers, it is a judgment call if this is a BuySide or Sellside post. For now, we still think of Goldman as a broker. Plus, Bear Stearns is stinking up our SellSide category and we need fresh topics over here…

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