Goldman Sachs seeks goldmine for hedge fund

23 November 2007

Investment bank Goldman Sachs has announced to investors that it is looking to raise between $4 billion and $6 billion in order to build a new hedge fund.

According to the Financial Times, the new fund will be run by Goldman Sachs partners Raanan Agus and Kenneth Eberts and will for the first time focus on manually choosing shares, rather than using quantitative methods.

In August, three of Goldman's quant funds had losses of up to 30 per cent over a fortnight as the quant sector was plunged into chaos but the bank hopes that its new approach will win back investors.

Should Goldman manage to secure its ambitious target of $6 billion in funding it would equal the launch of the Convexity Capital hedge fund last year.

There will be both US and offshore versions of the so-called Opportunistic Multi-Disciplinary Investment Fund, which Goldman hopes to launch in January.

Most of the investment will be in shares and investors will have to consent to a two-year investment pledge without being able to withdraw any money.

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