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Old 09-21-2007, 09:57 AM
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Re: Goldman Global Alpha Fund Fell 22 Percent in August
<<So basically they just robbed Bear Stearns >>

The Goldman Sachs prop traders also basically robbed the Goldman Sachs Alpha Fund. Alpha Fund was -30% and Goldman Sachs trading desk kicked serious arse. Feasting on your own -- a Wall Street tradition.

I really have to think there is more to the story of the Alpha Fund than meets the eye. It really doesn't make sense to have 2 very, very smart guys running many different strategies and they all go bad at the same time.
The fund was designed to have uncorrelated strategies and they somehow ALL got correlated. These guys either totally dropped the ball in execution of their top-down strategy -- in which case they should be fired -- or something very major happened here that is non-public, material information. This one just doesn't add up.

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