14 Aug 2007, Alexander Campbell, Risk magazine
Goldman said the recent unwinding of other quant funds had "exacerbated the challenges" of managing the GEO fund. Market deleveraging is now more than 75% complete, it said. Going forward, the fund would continue to operate at 3.5 times leverage, down from six times before the investment.
Goldman chief financial officer David Viniar commented: "Given the dislocation in the markets, we believe this is a good investment opportunity for us and the other investors we have brought in." He added: "There are a lot of assets now trading at distressed prices that are not distressed. This is one of them."
© Incisive Media Investments Limited 2014, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093