Goldman Sachs fund nosedives nearly 8% in July

7 August 2007

The GS Global Alpha fund posted a 7.7 per cent loss before fees in the week ended July 27th.

Latest results for the US bank's flagship fund bring its performance for the year to a loss of 12.1 per cent, according to an investor cited by CNN Money.

David Viniar, Goldman Sachs' chief financial officer, refused to comment on the fund’s performance but did assert that it had not been subject to any substantial redemptions.

However, according to a report from Financial News, the under-performing fund has dented Goldman Sachs Asset Management's profits since it has failed to earn performance fees in the last two quarters.

News of the losses comes as the hedge fund sector has recorded its worst calendar week in four years, with the investable hedge fund index from Hedge Fund Research dipping by 3.01 per cent.

Among the funds hit heaviest recently were Sowood Capital Management which recorded a loss of 57 per cent, while Tudor Investment's raptor fund was down 9.02 per cent.

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