Alt Investments

Hedge Fund Heavyweight Liquidates Entire Goldman Sachs Stake

Tom Burroughes Group Editor 1 August 2011

Hedge Fund Heavyweight Liquidates Entire Goldman Sachs Stake

Lansdowne Partners, the world’s largest equity hedge fund manager, has sold its entire stake in Goldman Sachs due to fears that regulations and other pressures will squeeze profits of traditional investment banks, media reports said.

The London-based firm sold its $850 million stake in the Wall Street giant – a sum equal to around 1 per cent of the bank’s total shares – at the beginning of the year, reports said.

Lansdowne holds $16 billion under management and is Europe’s fifth-largest hedge fund.

The hedge fund is understood to be concerned by the ongoing effect onerous new US financial legislation – particularly the Dodd-Frank act – may have on the bank, according to the Financial Times.

Goldman’s share price has slid nearly 20 per cent so far in 2011. Profits at the US investment bank dropped from $2.7 billion in the first quarter to just over $1 billion in the second quarter. The firm has declined to comment on the Lansdowne Partners story.

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