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Goldman Hedge Fund Gets $3B Infusion

Posted Aug 13, 07 11:38 AM CDT in Business,  US 

(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.

Source Bloomberg

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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)
Maurice "Hank" Greenberg, the former chairman of insurer American International Group, is seen in New York in this file photo of May 12, 2005. Goldman Sachs Group on Monday, Aug, 13, 2007 said a group...   (Associated Press)
The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs. (AP Photo/Richard Drew)   (Associated Press)
Billionaire Eli Broad, who is part of a bid to buy the Tribune Co., speaks during an interview with The Associated Press, in this Nov. 30, 2006 file photo in Los Angeles. Goldman Sachs Group on Monday,...   (Associated Press)
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