« Home | Just $25 for eBay So Says Piper Jaffray » | Aardvark Turns 110 Years Old » | Goldman Sachs Wins Again - M&A League Table 2006 » | No More Starving Bankers - Banks Get $10 Billion P... » | Restart : Amaranth Founder Looks for Second Chance... » | Amp'd Mobile Hits 100,000 Subs with $100 ARPU » | StudiVZ Acquisition Means FaceBook Users Worth $10... » | Get Your Black Donnellys from NetFlix for Free » | Spockos Brain Bites the Dust - Walt Disney Takes D... » | PlayBoy PlayMates Kick Bill Miller's Ass - Hot Sto... »

January 09, 2007

Goldman Sachs Cuts Oil: Draws Protest from Angry Unemployed Saudis

posted by MR WAVETHEORY at 1/09/2007 01:51:00 PM
Goldman cut the energy portion by as much as 50 percent in some of the sub-indexes that comprise the widely followed Goldman Sachs Commodity Index, tamping down moves to buy them by large investment funds who mimic Goldman's index.

The changes took effect this month and apply for all of 2007, a Goldman spokesman said.

Crude oil futures plunged 9 percent Wednesday and Thursday to $55 a barrel, before settling Friday at $56.31. The two-day decline was the sharpest since December 2004.

The GSCI is influential because large institutional investors like pension funds and endowments invest according to its allocation model.

"If Goldman's model tells them to cut their energy exposure by half, they do it," says Warren Mosler, president and chief investment strategist of Valence Corp., a multi-billion dollar hedge fund.

Previous Posts

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home