Debut of New Goldman Hedge Fund May Break Record at $10B

Firm spawns first in-house private fund
By Nick McMaster,  Newser Staff
Posted Dec 17, 2007 5:55 PM CST
This undated handout file photograph of Goldman Sachs president and chief operating officer Lloyd Blankfein was released by the Wall Street investment bank, Friday, June 2, 2006. (AP Photo/HO, Goldman...   (Associated Press)
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(Newser) – Goldman Sachs will launch a new stock hedge fund next month with as much as $10 billion, making it the biggest hedge fund debut in industry history, Bloomberg reports, and Goldman's first in-house fund of its kind. The fund, Goldman Sachs Investment Partners, will be run by two Goldman department heads, with a staff of 40 from the proprietary equity division.

Six multibillion-dollar funds have spun off from Goldman, but in all cases the traders left Goldman to start their own firms. This time the players are staying in-house, enriching Goldman’s asset-management group. It is a strategic goal of CEO Lloyd Blankfein’s: "Given our reputation for success, I think our private wealth-management footprint is smaller than it should be," he said in November.