GS to Close Global Alpha Quant Fund as a Result of Losses

Goldman Sachs is turning out the lights of their well-known hedge fund that trades based on quantitiative analysis and computer-driven strategies. The fund continues to ring up large losses.  Perhaps they need Keybot the Quant to give them a hand? GS's Global Alpha fund is about $1.6 billion in size and had served as a shining light for all the quantitiative trading hedgies, but now that light has faded.

The fund will close over the next few weeks. The quant funds use computer programs to move quickly in and out of positions, taking advantage of opportunities in the markets. These funds typically perform these tasks at a fast rate and daily trades are the norm.  Keybot the Quant moves more in a swing or position trading style time frame.

In its heyday, the Global Alpha fund had $12 billion in assets and the high net worth clients could not get enough of the action.  Now that the fund has suffered its second largest trading loss in four years, the management and the quant strategies are under scrutiny, and the sought-after fickle money is moving elsewhere.

Folks familiar with GS say this exit may indicate a larger trading strategy to exit the quantitative hedge fund business completely. This is doubtful since billions remain managed by quant funds at GS. Sounds more like the whiz kids' program blew up, as happens sometimes, perhaps they outsmarted themselves? Fortunately, Keybot the Quant motors along in fine shape since its inception in 2008, although development and testing for Keybot spanned a decade before it was ready for prime time.

In general, the other Wall Street quant funds are flat or up and this handlily beats the benchmark SPX that is down about 5 or 6% year to date, so the quant funds are alive and well and will stay that way. Unpredictable market moves, such as the August crash, may be cited as reasons for the fund blow-up, but, as was seen in real-time here all year long, Keybot had no trouble maneuvering these treacherous markets (Keybot knocks wood, although in its case, it knocks metal).

All quant's are not created equal. The word on the street says Renaissance Institutional Equities fund has gained over 25% this year and QuantZ Capital Management is up about 13% on the year thus far. Close but no cigar folks, since Keybot the Quant is up about 40% on the year thus far. Keybot raises its metal arm in a telephone positon next to its robot head, the pinky and thumb digits extended, and in its staccato robot voice says, "Call me GS."