Report: No Goldman fund bailout

NEW YORK (CNNMoney.com) -- Goldman Sachs Group won't bail out its embattled flagship Global Alpha hedge fund, but it won't close the fund either, according to a published report.

The Wall Street Journal reports that the fund managers have sent a letter to investors with promises to better handle borrowing and volatility, to shrink the size of the fund and to "adjust our process."

The letter did not say there would be any injecting of Goldman's own money into the fund, according to the report. Some investors had been hoping for that kind of help after Goldman (Charts, Fortune 500) pumped money into a smaller fund weeks ago, the paper said.

In August alone, assets in the fund dropped 22.7 percent, according to the report. It now is valued at about $6 billion, down from $10 billion a year ago.

The paper reports that the letter also promises that the fund would adjust its positions more rapidly in response to volatility in financial markets.

"Our intent is to move aggressively to limit the size of the fund and to increase our agility in times of market stress," said the letter, which the paper said was signed by Mark Carhart and Ray Iwanowski, the fund's managers.

The paper reports that investors in the fund, which included some of Goldman's best customers such as Asian tycoons, rich families and Goldman partners, aren't likely to be pacified by the letter.