Hedge Funds

Goldman analyst says rumors of collapse exaggerated


Meanwhile, Goldman Sachs' senior researcher Jim O'Neill recently provided a more positive picture of the industry, noting that while hedge fund returns have suffered in 2005, the chance of a catastrophic fund collapse remains unlikely.

The head of global economic research at the investment bank spoke out publicly this week in a Bloomberg report after rumors began circulating that some hedge funds might have run aground following failed correlation and tranche trades on General Motors and Ford. O'Neill suggested hedge fund performance may not be strong this year, but that rumors of supposed fund implosions brought on by volatility