NEW YORK--(BUSINESS WIRE)--Goldman Sachs Asset Management (“GSAM”) today announced the launch of the Goldman Sachs Long Short Fund (“the Fund”; Class A shares: GSEAX; Class I: GSLSX), which pursues high conviction investment ideas in global equity markets through a fundamental, bottom-up approach to investing while seeking to hedge market risk and limit volatility. As a leading manager of alternative investments, GSAM continues to grow its Liquid Alternatives business and this new Fund expands that platform to include seven funds.
“We seek to identify secular changes in industries, markets and consumer behavior that will positively or negatively impact companies. We are typically looking for investment opportunities with asymmetric risk/return profiles and identifiable catalysts,” said Raanan Agus and Kenneth Eberts, co-heads of the Goldman Sachs Investment Strategies (GSIS) portfolio management team. “We strive to build a hedged portfolio with the flexibility and nimbleness to generate attractive performance in any market environment.”
The GSIS team is comprised of 55 investment professionals across four regions globally and led by Messrs. Agus and Eberts, who each have more than 20 years of investing experience.
“For the first time, we are bringing the expertise that Raanan, Ken and their entire team have delivered to institutional and qualified high net worth investors to a retail investing client base,” said James McNamara, President of GSAM’s mutual funds business. “We are excited to further meet the growing demand for differentiating liquid alternative investment solutions.”
The Fund is offered in Class A and C shares with $1,000 minimum initial investments. The Fund also offers Institutional, Class R and Class IR Shares. GSAM also recently launched its Liquid Alternatives Center (www.gsamfunds.com/lac) to provide advisors and investors with educational materials and tools that were specifically designed to help them effectively manage portfolios with allocations to liquid alternatives.
GSAM is the asset management arm of The Goldman Sachs Group, Inc. (NYSE:GS), which oversees $1.14 trillion as of June 30, 2014. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
The Goldman Sachs Long Short Fund invests primarily in the global equity markets, with a focus on securities listed on North American and European exchanges, through the use of long and/or short positions. The Fund may also invest in global fixed income, commodity and currency instruments. The Fund’s equity investments are subject to market risk, which means that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular sectors or governments and/or general economic conditions. The securities of mid- and small-capitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements. The Fund is subject to the risks associated with short selling of securities, which involves leverage of the Fund’s assets and presents various other risks. The Fund may be obligated to cover its short position at a higher price than the short price, resulting in a loss. Losses on short sales are potentially unlimited as a loss occurs when the value of a security sold short increases. The Fund’s borrowing and use of derivatives result in leverage, which can make the Fund more volatile. The Fund’s fixed income investments are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. High yield, lower rated investments involve greater price volatility and present greater risks than higher rated fixed income securities. Foreign and emerging markets investments may be more volatile and less liquid than investments in U.S. securities and are subject to the risks of currency fluctuations and adverse economic or political developments. Derivative instruments (including swaps and forward foreign currency transactions) may involve a high degree of financial risk. These risks include the risk that small movements in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument; risk of default by a counterparty; and liquidity risk (i.e., the risk that an investment may not be able to be sold without a substantial drop in price, if at all). The Fund’s investments in other investment companies (including exchange-traded funds) subject it to additional expenses. At times, the Fund may be unable to sell certain of its illiquid investments without a substantial drop in price, if at all. Different investment styles tend to shift in and out of favor, and at times the Fund may underperform other funds that invest in similar asset classes. Certain shareholders, including clients or affiliates of the investment adviser, may from time to time own or control a significant percentage of the Fund’s shares. Redemptions by these shareholders of their shares of the Fund may impact the Fund’s liquidity and NAV. The Fund is “non-diversified” and may invest more of its assets in fewer issuers than “diversified” funds. Accordingly, the Fund may be more susceptible to adverse developments affecting any single issuer held in its portfolio and to greater losses resulting from these developments.
The investment program of the Fund is speculative, entails substantial risks and includes alternative investment techniques not employed by traditional mutual funds. The Fund should not be relied upon as a complete investment program. The Fund’s investment techniques (if they do not perform as designed) may increase the volatility of performance and the risk of investment loss, including the loss of the entire amount that is invested, and there can be no assurance that the investment objective of the Fund will be achieved.
Goldman, Sachs & Co. is the distributor of the Goldman Sachs Funds.
A summary prospectus, if available, or a Prospectus for the Fund containing more information may be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling (retail - 1-800-526-7384) (institutional – 1-800-621-2550). Please consider a fund's objectives, risks, and charges and expenses, and read the summary prospectus, if available, and the Prospectus carefully before investing. The summary prospectus, if available, and the Prospectus contains this and other information about the Fund.
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