Goldman Sachs has announced to investors that it is aiming to raise between $4 billion and $6 billion in order to create a new hedge fund.
The proposed fund will be managed by Goldman Sachs partners Raanan Agus and Kenneth Eberts and will focus on manually choosing shares, rather than using quantitative methods, the Financial Times reports.
In August, three of Goldman Sachs’ quant funds suffered losses of up to 30% in two weeks as the quant sector was plunged into turmoil. However, the bank hopes that its new approach will win back investors.
If Goldman Sachs manages to acquire its target of $6 billion in funding it would equal the launch of the Convexity Capital hedge fund last year. There will be both US and offshore versions of the Opportunistic Multi-Disciplinary Investment Fund, which Goldman Sachs hopes to launch in January 2008.
Most of the investment will be in shares and investors will have to agree to a two-year investment period in which they will be unable to withdraw any money.