The January 2008 debut of $6 billion plus Goldman Sachs Investment Partners, managed by Raanan Agus and Kenneth Eberts -- former heads of Goldman's proprietary trading -- was one of the biggest hedge fund launches. And as of September it was down around $989 million. Good thing for them they have a 2 year lockup. Not so good for investors. We can only guess that October was also a rough month for the fund. According to the Financial Times:
The managers said: “We are disappointed with our performance.” But they added: “GSIP is not alone in producing disappointing returns this quarter and this year.
“We anticipate that these results will lead to net outflows from the hedge fund industry.” Hedge funds have had a horrible year with asset prices in free fall, redemptions at record levels and banks imposing tougher conditions on lending, prompting some managers into fire-sales.
More than half of GS Investment Partners’ losses in the third quarter was from its investments in commodities, basic materials, metals, mining, energy and agriculture. But like many multi-strategy funds diversified across equity, credit markets and convertible bonds, GS Investment Partners was hit hard by losses on convertible bonds – debt instruments that can convert into equity. It said returns from the convertible asset class had been “abysmal”.
Goldman fund loses $990m after 10 months - Financial Times