NEW YORK -- Goldman Sachs Group on Monday said a group of investors that includes Eli Broad and Hank Greenberg will sink $3 billion into one of its biggest hedge funds that has seen its value plunge amid market volatility.
The investment bank said its Global Equity Opportunities fund "suffered significantly" as global markets sold off on worries about debt and credit. The fund lost as much as 14 percent of its value during the past 12 month, according to media reports, and is currently worth about $3.6 billion.
Goldman Sachs Group Inc. will lead the group of investors to help bail out the hedge fund, which relies on computer-driven trading strategies. Other investors include Broad, Greenberg's C.V. Starr & Co., and Perry Capital LLC.
In addition, the investment bank said that two other hedge funds it manages — Global Alpha and the North American Equities Opportunities Fund — have also suffered during the market dislocation. Goldman said it "reduced risk and leverage" in the funds to stem losses.
"At their current levels of equity capital, we believe the funds are positioned to actively pursue market opportunities," Goldman said in a statement.
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