Goldman Sachs (GS) has finally decided to wind down its once $7 billion player Global Equity Opportunities Fund [G.E.O], according to The Financial Times.
The move highlights growing pressure on banks to curb in-house trading activities and a broader clampdown on risk taking.
At its peak, G.E.O managed more than $7 billion but became one of the first victims of the financial crisis when it lost nearly $1.5 billion in summer of 2007.
Goldman’s once flagship of its in-house hedge funds was reduced to a mere $200 million by the end of last year as a result of client redemptions and lucklustre performance in 2008 and 2009. At one point G.E.O saw its investments fall by 30% over a two-week period.