- Home
- >
- Market Rumours
- >
- Goldman Sachs to close London operations of internal hedge fund
Goldman Sachs to close London operations of internal hedge fund
Rating:
Loading...Goldman Sachs is shutting down the London operations of its internal hedge fund, closing a chapter in a unit that ranked as one of the biggest launches to date.
Goldman Sachs Investment Partners started in 2008 with total assets of $7bn, including $2bn of Goldman’s own money. But performance was patchy and a few years ago the bank began pulling money out of the fund to comply with the Dodd-Frank Act of 2010, part of which requires big banks to limit their investments in hedge and private equity funds.
About eight London-based employees were recently told to move to Goldman’s global headquarters in Manhattan, or find a new job internally.
A person familiar with the reshuffle, which was first reported by Reuters, said it was triggered by the retirement of Nick Advani, a managing director who led the hedge fund from London and said last June he would be stepping down from his role.
Goldman said the reshuffle was not connected to the UK’s efforts to negotiate an exit from the EU, which has prompted many financial services groups to review their staffing in the country.
“This is a discrete decision for reasons specific to GSIP, one investment team within Goldman Sachs, and shouldn’t be construed as anything but that,” said Goldman.
GSIP, which Goldman describes as a multidisciplinary fund seeking “asymmetric risk-reward opportunities to achieve equity-like returns”, sits within the bank’s investment management division. That division has become an increasingly important contributor to the group’s bottom line, as earnings from trading and investment banking have been hit by swings in asset prices and erratic client activity.
Varchev Traders Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
