Debut of New Goldman Hedge Fund May Break Record at $10B

Goldman Sachs will launch a new stock hedge fund next month with as much as $10 billion, making it the biggest hedge fund debut in industry history, Bloomberg reports, and Goldman's first in-house fund of its kind. The fund, Goldman Sachs Investment Partners, will be run by two Goldman department heads, with a staff of 40 from the proprietary equity division.

Six multibillion-dollar funds have spun off from Goldman, but in all cases the traders left Goldman to start their own firms. This time the players are staying in-house, enriching Goldman’s asset-management group. It is a strategic goal of CEO Lloyd Blankfein’s: "Given our reputation for success, I think our private wealth-management footprint is smaller than it should be," he said in November. (More Goldman Sachs stories.)