How did the big investment banks’ flagship hedge funds do in 2007? Highbridge Capital, which is controlled by JP Morgan, ended in positive territory for the year (+6%), despite going through a nasty patch this summer. The Global Alpha fund at Goldman Sachs, by contrast, managed to lose an astonishing 39% last year.
Might there be a Goldman partner or two who actually lost money in 2007, thanks to the collapse of Global Alpha? Probably not, given the fact that the bank is shelling out record bonuses this year. But it’s possible.