Bailout of hedge-fund at Goldman Sachs

Calcutta News.Net
Monday 13th August, 2007

The investment bank, Goldman Sachs, has teamed up with a group of investors to lead a three-billion-dollar bailout of a hedge fund it manages.

Goldman Sachs says the bailout of the Global Equity Opportunities hedge has come after a dramatic fall in the fund’s performance.

The bank says recent financial market volatility has caused the fund's equity to plunge, and their response has been to limit the risk.

Goldman Sachs says its GEO fund was valued at 3.6 billion dollars prior to the bailout.

Analysts believe it has lost about 30 percent of its value since the start of the year.

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