Goldman Hedge Fund Gets $3B Infusion
Investors fund bailout after assets evaporate; markets breathe
By Jonas Oransky,  Newser Staff
Posted Aug 13, 2007 11:38 AM CDT
The headquarters of investment firm Goldman Sachs towers over smaller buildings in New York in this Dec. 11, 2006 file photo. (AP Photo/Mark Lennihan, File)   (Associated Press)
camera-icon View 3 more images

(Newser) – A struggling Goldman Sachs hedge fund will get a $3 billion cash infusion, with a third of the bail-out coming from wealthy investors and the rest from the bank itself. Global Equity Opportunities Fund has seen assets drop by 28%, to $3.6 billion, over the last two weeks, as chaos in the financial markets undermined its computer-driven investment formulas, Bloomberg reported.

The world’s second largest hedge-fund manager, Goldman positioned the injection of cash not as a rescue operation, but as a means to “take advantage of the opportunities we believe exist in current market conditions.” Investors putting money into the fund include Hank Greenberg and Eli Broad. Goldman shares rose 1.4% this morning, while the Dow was up 70.4 points, mainly on the news.