Sydney Morning Herald – Goldman Sachs is closing a well-known hedge fund that relies on computer-driven trading strategies after the portfolio rang up a hefty loss this year. Goldman told investors in the roughly $US1.6 billion ($1.55 billion) Global Alpha fund the news overnight, one day after it announced a management shake-up at the fund that had been the crown jewel of its quantitative trading business. The fund will be closed in the next few weeks.
Global Alpha had tumbled 13 per cent by early September, delivering a far worse performance than other hedge funds that rely on computer programs to quickly take advantage of opportunities in the market, people familiar with the number said. These types of funds are supposed to move quickly in and out of stocks, bonds, currencies and other assets and exit positions before losses accrue.
