This page has been archived and commenting is disabled.

Goldman's "Best Ideas" Hedge Fund Is Down 2.6% In 2014

Tyler Durden's picture




 

If only the $3.2 billion Goldman Sachs Global Opportunities hedge fund had listened to the firm's equity strategists, life would have been great. However, as Bloomberg reports, the so-called 'best-ideas' fund dropped 5.6% in October leaving it down 2.6% for 2014 as interest-rate bets went pear-shaped amid the crash-and-dash that was October's market manipulation. "We believe monetary policy needs to catch up with growth, and that interest rates in the US and UK are likely to rise by a significant amount," the fund wrote. It seems Goldman 'muppeted' itself. Things aren't working out... and as a gentle reminder, the fund lost 35% in 2008.

 

As Bloomberg reports,

A $3.2 billion Goldman Sachs Group Inc. hedge fund that pools some of the firm’s best ideas declined 5.6 percent last month as a bet on the direction of U.S. interest rates went wrong, two people with knowledge of the matter said.

 

Goldman Sachs Global Opportunities Fund, which invests based on the trade ideas from the money-management unit’s fixed-income team, took a position that interest rates would rise, only to see them decline, said the people, who asked not to be identified because the information is private.

 

...

 

“We believe monetary policy needs to catch up with growth, and that interest rates in the US and UK are likely to rise by a significant amount in the next one to two years,” according to a March paper written by the asset management arm.

 

...

 

The fund, which has counted former presidential contender Mitt Romney among its investors, is a relative value pool that takes positions on rising and falling prices in the global fixed-income and foreign exchange markets. The fund, which was started in 2001, had $3.2 billion in assets as of June, the people said.

 

Since inception, the fund has generated a net internal rate of return of 9.1 percent, said one of the people. It declined 2.6 percent in 2014 through October. If that performance holds, it would lead to the second calendar-year loss in the fund’s history. The fund declined 35 percent in 2008, according to the people.

 

The fund is overseen by Jonathan Beinner, co-head of global fixed income at Goldman Sachs Asset Management, and Samuel Finkelstein, head of macro strategies within the fixed-income team, according to a regulatory filing this year.

*  *  *

Goldman "muppeted" itself...

*  *  *

Don't these guys get it? You buy stocks, then when they downtick, you buy moar... and if they have a down day you back up the truck... it's easy.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 11/18/2014 - 22:25 | 5463428 medium giraffe
medium giraffe's picture

Goldman don't lose, unless it helps them win.

Tue, 11/18/2014 - 22:31 | 5463443 knukles
knukles's picture

Hey.  They still get their 2 and 20 ... probably without a high watermark, no less.
And all the buckaroos in it, they put in there.
Called client (other people's) money

Lloyd Be Praised

 

Wed, 11/19/2014 - 01:10 | 5464086 wee-weed up
wee-weed up's picture

 

 

"Best Ideas?"

Yep... For them certainly...

But NOT for you!

Tue, 11/18/2014 - 23:01 | 5463612 HedgeAccordingly
HedgeAccordingly's picture

It is cool.. everyone got promoted to MD this year.. 

http://hedgeaccordingly.com/2014/11/bad-year-for-commodities-whether-in-...

Wed, 11/19/2014 - 00:39 | 5464032 Bloppy
Bloppy's picture

Who are the investors dumb enough to trust Goldman with their money?

 

Also: conservatives question Fox's coverage of Bill Cosby rape allegations

http://tinyurl.com/n69mxuw

Tue, 11/18/2014 - 22:27 | 5463429 takeaction
takeaction's picture

I honestly think this shit show can keep on rolling.  Year after year...they just keep pushing and pushing...Even with the end of QE announcement...there is no end to QE...they will print and print and print....Have no clue when it will fall...but I am thinking Dow 20K  S&P over 2500....and I am not being sarcastic.

Tue, 11/18/2014 - 22:32 | 5463453 Guerrero Latino
Guerrero Latino's picture

No, your'e not

Tue, 11/18/2014 - 22:37 | 5463475 Seasmoke
Seasmoke's picture

Yes S&P 2500. Drop the Zeros 2+5=7.

Tue, 11/18/2014 - 22:32 | 5463454 williambanzai7
williambanzai7's picture

They have only one idea: Lean Over Muppet

Tue, 11/18/2014 - 22:37 | 5463473 Spaulding 3.0
Spaulding 3.0's picture

in other news ....

China accounts for 50% of global private sector debt issued since 2007 .....10 Trillion tick, tick, tick, tick ...........

https://twitter.com/SusanLund_DC/status/534756009685032961

Tue, 11/18/2014 - 22:45 | 5463534 highly debtful
highly debtful's picture

Goldman's Best ideas Hedge Fund. Contradictio in terminis, anyone? These mere five words put together in one line are enough to make you laugh. Or puke.

Tue, 11/18/2014 - 22:56 | 5463589 KnuckleDragger-X
KnuckleDragger-X's picture

Yeah, my mental computer tried to do a divide by zero on that name....

Tue, 11/18/2014 - 22:59 | 5463600 Fuku Ben
Fuku Ben's picture

Fuku Fund up 187.342% YTD

Lick your Sach you bottom feeding GS bitchez!

A few of the big winners: Au/Ag; Ebola; Malaysia Airlines

Fuku Fund Futures Tip: 11/26/14 Malaysia Airlines 3.0? - Although odds have lowered slightly in recent weeks they are still very high for a 3rd event

After all when Obozo couldn't get boots on the ground in Syria he just had to keep try try trying again. Do you really think Ukraine is that much different?

"The only sure bet is that corruption, collusion, cronyism, crime and Corporatocracy will reign. Invest accordingly" - Fuku Ben

* http://www.zerohedge.com/help/disclaimer + Past performance is no indication of future results

Tue, 11/18/2014 - 23:36 | 5463819 Jstanley011
Jstanley011's picture

Well somebody's gotta take the other side of their trading floor's trades. Might as well be their customers.

Tue, 11/18/2014 - 23:40 | 5463840 Glass Seagull
Glass Seagull's picture

 

 

Have they SEEN global growth estimates lately?  DM sov convexity ain't been a bad spot to be.

 

 

Wed, 11/19/2014 - 00:10 | 5463948 Bunga Bunga
Bunga Bunga's picture

Goldman Sachs should just rename it into "Bad Idea" hedge fund - problem solved.

Wed, 11/19/2014 - 00:22 | 5463978 Atomizer
Atomizer's picture

 

 

NSA is passing Intel onto NORAD that the Santa sleigh might be moving WMD into NATO territory.

http://www.noradsanta.org/

 

Wall Street Santa Claus Banking  CEO Kingpin Laundering Operations Runner Gets Arrested.

Plea deal is work in progress.

Wed, 11/19/2014 - 00:59 | 5464094 ClowardPiven2016
ClowardPiven2016's picture

The fund is overseen by Jonathan Beinner......who will only receive a $900,000.00 bonus this year

Wed, 11/19/2014 - 01:09 | 5464118 Dineroguru
Dineroguru's picture

Best Ideas....JPM has one of those funds too.  I wonder which performed the worst this year.....it is like the Iditarod of prop products for HNW investors!

Wed, 11/19/2014 - 01:45 | 5464204 Atomizer
Atomizer's picture

Sometimes a shady slush fund gets the no head shake. Accordion, monkey, and a tin cup just doesn’t work for someone who hasn’t exposed the derivatives leverage…

Wed, 11/19/2014 - 03:33 | 5464330 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

35% in 08 loss is proof that GS does not know mathematics and more proof that they were caught unaware when the crash manifested March 10th 2008 @ 11:00am Bear Stearns time. The market is blind and GS is blind so that we have the blind leading the blind which makes for good volatility in the long run of time. In fact, the volatilty will get even better as time passes methinks. GS is literally flying by the seat of their pants and cannot possibly sustain the charade much longer. IMF rhetoric will start flying off the printers in short order. The politicians need economic stability in an election year and will not get anything remotely like that in 2015/16.

 

Wed, 11/19/2014 - 05:20 | 5464427 Notsobadwlad
Notsobadwlad's picture

You can bet that Lloyd Blankfein does not have is money in the Goldman Best Ideas fund. That fund is for muppets only.

Wed, 11/19/2014 - 09:00 | 5464700 fountainhead
fountainhead's picture

I thought that list was a made up of stocks that their prop desks bought lower and wanted to distribute to their muppets.  

Wed, 11/19/2014 - 10:09 | 5464927 Grinder74
Grinder74's picture

Boo hoo, they'll only get their 62.3 mil in management fees this year.

Wed, 11/19/2014 - 10:14 | 5464948 Ban KKiller
Ban KKiller's picture

People believed him? Of course! Short NSM and FIG as whistle blower is ratting them out as you read this.

Do NOT follow this link or you will be banned from the site!