Wednesday, May 19, 2010

Goldman's New Critics: Hedge Funds

By John Carney

It's not just regulators in Washington DC or protesters on the streets of New York who have it out for Goldman Sachs. Hedge fund managers and hedge fund investors are also leveling harsh criticisms of the bank.

"They've lost their way, fallen for the trap of short term profits, and abandoning clients," one hedge fund manager told me over cocktails in the casino of the Bellagio Hotel in Las Vegas last night.

The Bellagio is hosting the second annual Skybridge Alternatives Conference, an invitation-only convention for asset managers, high net worth investors, and hedge fund managers. A host of big-names—including former President Bill Clinton—are set to take the podium in the Bellagio's ballroom to discuss current global issues, investment ideas, and the future of hedge funds.

But the real action, of course, takes place outside the ballroom—in the hallways, the Bellagio's restaurants, and around the bars—where hedge fund managers network with the asset managers they hope will allocate some capital in their direction. And not many of them have kind words for Goldman Sachs.

"It's not the same firm it was a decade ago," said one of the attendees.

"They've now got a 'rip your eyes' out culture," another agreed.

Read the rest here.

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