U.S banking major,
The Goldman Sachs Group, Inc.
) multi-disciplinary hedge fund unit - Goldman Sachs Investment
Partners - has launched a new hedge fund in Asia named Oryza
Capital. Goldman Sachs is at present raising capital for the
fund. Through this new fund, the bank primarily seeks to tap
rising opportunities in the emerging markets of Asia.
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Oryza Capital came into being earlier this month, and is a
long/short equity fund, which invests in Asia - including Japan -
as well as Australia. The fund is managed by Goldman Sachs
Investment Partners' Asia co-heads, Hideki Kinuhata and Ryan
Asia's economic growth has outperformed both the U.S. and Europe
in the recent past. Further, according to Chicago-based
data provider Hedge Fund Research Inc., inflows into Asia-based
funds have taken regional hedge-fund assets to the highest level
since 2007. These factors played a significant role in attracting
global investors like Goldman Sachs.
Goldman Sachs Investment Partners was set up in 2008, within the
banking major's Asset Management division, mainly to comply with
the Volcker's rule. The unit manages roughly $1 billion of
regional holdings, and has generated a return of almost four
times its initial investment of $7 billion.
Due to a sluggish macroeconomic environment in the U.S., coupled
with stringent regulations, banking majors such as
JPMorgan Chase & Co.
Bank of America Corporation
) have experienced limited and uncertain top-line growth. These
banks are increasingly seeking other avenues to counter the
challenges. In this context, the formation of Oryza Capital
highlights Goldman Sach's initiatives to turn previous
proprietary trading entities into revenue-generating units.
Goldman Sachs currently carries a Zacks Rank #2 (Buy).