By Sarah Wood
Has Goldman decided the alpha has gone away - and called the
top of hedge fund returns?
That was one of my first thoughts when news surfaced earlier
this year that the bank would reassign about half of its
vaunted proprietary equities trading group - an "internal hedge
fund" as it is sometimes called - to its asset management
division. Led by global prop chief Raanan Agus and U.S. head
Ken Eberts, the team would start a multistrategy hedge fund
called Goldman Sachs Investment Partners (GSIP) and run less of
the firm's own money, but be able to collect fees from untold
numbers of outside investors.
Goldman, however, apparently sees at least as much
opportunity as before: The firm is not only planning to invest
billions of its own capital in the new fund; it will also
allocate as much money as ever to a reconstructed proprietary
effort led by...