The Goldman Sachs Group and a group of investors including C.V. Starr & Co., Perry Capital and Eli Broad pumped $3 billion into the ailing Goldman Sachs Global Equity Opportunities Fund, according to a company statement.
Goldman Sachs officials dont believe the market discount is supported by the fundamentals, according to the statement, which says the firm and its partners in the cash infusion consider this an attractive investment opportunity. The investment will also provide the fund with more flexibility to take advantage of the opportunities we believe exist in current market conditions.
Performance of the long/short hedge fund has suffered during recent market dislocations, according to the statement. A source with knowledge of the fund, who asked for anonymity, said its year-to-date performance as of Aug. 10 was -34%, with most of the loss occurring last week. Assets of the GEO fund are down about $2 billion from the beginning of the year to $3.6 billion.