Two Goldman Sachs funds in trouble

Computer-driven funds have suffered big losses and selling positions as a result, paper reports.


NEW YORK (CNNMoney.com) -- Two Goldman Sachs computer-driven hedge funds have sold some positions after taking a big hit in recent weeks, according to a report published Tuesday.

Citing sources familiar with the matter, Goldman's Sachs Global Alpha and its North American Equity Opportunities hedge fund, which are down substantially for the year, have liquidated certain positions the Wall Street Journal reported.

Calls to Goldman Sachs were not immediately returned.

The $9 billion Global Alpha hedge fund and North American Equity Opportunities, a "equity market neutral fund" with $767 million under management earlier this year, both relied on computer programs to execute trades, the paper reported.

Funds like Alpha, which was briefly rumored to be closing earlier this week, have suffered because of a combination of factors, including the fact that the computer models did not recognize the risk environment in the market, according to the Journal.

Global Alpha is now down 16 percent for the year, while North American Equity Opportunities was down more than 15 percent through July 27, according to the paper.

Goldman Sachs (down $10.97 to $182.33, Charts, Fortune 500) shares fell nearly 6 percent in Thursday trade on the New York Stock Exchange. Top of page

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.