Reuters- Goldman Sachs Group Inc. has told investors it expects its Global Alpha hedge fund will end the year with roughly $4 billion in assets, about 60 percent less than in January, several peoplefamiliar with the matter said.
The fund, a so-called quantitative portfolio that relies on computer models to make big bets, suffered losses amid the ongoing credit market turmoil that also hurt other prominent hedge funds. On top of that, some investors in the Alpha fund asked for their money back.
Goldman Sachs’ fiscal year ends on Nov. 30.
The steep loss marks an embarrassment for the prominent Wall Street securities firm, which has trained many of the world’s most successful hedge fund managers early in their careers.
