Goldman vows improvement at Global Alpha fund

Date: Wednesday, September 19, 2007
Author: Reuters

NEW YORK, Sept 19 (Reuters) - Goldman Sachs Group Inc's (GS.N: Quote, Profile , Research) Global Alpha hedge fund has promised it will handle borrowing and volatility better, the Wall Street Journal said in its online edition on Wednesday, citing a letter from the fund's managers to investors.

Goldman will not close the $6 billion fund or inject any of its own money into the fund, which dropped 22.7 percent in August, the report said.

According to the report, the letter said the fund would constrain its borrowing in the future, and consider the level of borrowing as a separate risk factor. The letter also said that as a result of recent volatility, the fund would adjust positions more rapidly, the report said.

"Our intent is to move aggressively to limit the size of the fund and to increase our agility in times of market stress," the Journal quoted the letter as saying.

Goldman Sachs was not immediately available for comment.