Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

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
Email

(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.

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)
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 of investors that includes Eli Broad and Hank Greenberg will sink $3 billion into one...
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)
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, Aug, 13, 2007 said a group of investors that includes Eli Broad and...
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)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Goldman makes "80s style leverage deal"
CNN

Writer: Wall Street threatens everyone; liquidate Goldman Sachs
Asia Sentinel

Markets sigh with relief after bailout
Bloomberg

US • Money

 
Eli Broad • Goldman Sachs • subprime mortgages • hedge fund • Hank Greenberg • financial crisis

More Newser Stories

Outlook Bearish for Bear Sterns Hedge Funds

Feds Sue Big Banks Over Mortgages

Real Subprime Scandal Is Ratings Firms, not Goldman

Banks Probed for Betting Against Own Securities

Goldman Sees $2T Credit Shortfall, Major Slowdown
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne