Goldman Sachs Private Wealth Sees 4% Hedge-Fund Returns

Goldman Sachs Group Inc.’s private-wealth-management unit expects hedge funds to return an average of 4 percent to 5 percent over the next five years as the industry struggles amid low interest rates.

“Everybody hopes to get the five hedge funds, all of whom are going to have 15 percent returns,” Sharmin Mossavar-Rahmani, chief investment officer of Goldman Sachs Private Wealth Management’s Investment Strategy Group, said at a press briefing today. “People need to be more realistic.”