Goldman Sachs Global Alpha Blows Up Again!posted by MR WAVETHEORY at 9/14/2007 05:11:00 AM
The problem at GS Alpha? They shorted Asian bonds! Oops. Japan didn't raise rates as fast as they hoped.
August was the worst month in the fund’s 12-year history; it was down 22.7% last month alone, according to a recent letter to investors. So far this year through the end of August, it was down 33.4% due to bad bets on everything from the Australian dollar, the Norwegian stock market and Japanese government bonds. The letter gave no indication about how the fund was faring this month. Over the past 12 months, the fund has lost 37% of its value.
Bummer! Better luck next time.