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."