Can We Call It The Global Omega Fund Now?

September 15th, 2011 by alyx · 2 Comments · goldman sachs

…cuz Goldman Sachs’ Global Alpha fund is coming to an end. Clients are withdrawing their moneys left and right, and word has it the fund is down -12% YTD:

Goldman Sachs Group Inc., the fifth-biggest U.S. bank by assets, will shut its Global Alpha fund after clients pulled money from the quantitative trading pool that was once the firm’s largest hedge fund.

Goldman Sachs, led by Chairman and Chief Executive Officer Lloyd C. Blankfein, 56, has been shrinking Global Alpha since 2007 when it lost 40 percent because of bad bets on currencies, equities and bonds worldwide. The fund’s co-managers Mark Carhart and Raymond Iwanowski quit in March 2009, and Katinka Domotorffy took charge of the quantitative investment strategies unit, which uses computers to pick securities and oversees $56 billion.

What will all those computers do when they’re not needed to pick securities any more? Remember that GM commercial where the robot jumped off the bridge when it lost its job? We’re picturing something like that, unless the PPT is hiring. But on the bright side, at least the laid-off stock-picking machines can’t file for unemployment.

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