Goldman Sachs Redeeming All Liquid Hedge Fund StakesMichael J. Moore
Goldman Sachs Group Inc. exited $285 million of its stakes in hedge funds in the third quarter and requested redemption of all such investments that aren’t illiquid.
Goldman Sachs has withdrawn $2.55 billion from hedge funds since March 2012 to comply with the Volcker Rule, the New York-based company said today in a regulatory filing. The firm submitted requests to take back an additional $375 million, and said it will have to wait on funds to sell underlying assets before it can redeem more.
The Volcker Rule forces banks to cut stakes in private-equity and hedge funds to less than 3 percent of Tier 1 capital, which means Goldman Sachs can only hold about $2.3 billion. The bank said its fund investments last quarter were $11.4 billion, down from $14 billion at the end of June.
Goldman Sachs said it must comply with the rule by July 2015, though it can request extensions for some illiquid positions for several years.