ETF News

Goldman Sachs' Global Alpha co-heads retire

NEW YORK, March 31 (Reuters) - Goldman Sachs Group Inc. GS.N said the heads of its computer-driven investments and Global Alpha, once the bank's largest hedge fund, retired on Tuesday.

Departing were Mark Carhart and Raymond Iwanowski, who helped run Global Alpha and a group that managed quantitative investments. They left the bank along with research co-head Giorgio De Santis, the bank said.

The departures follow two years of disappointing performance at Global Alpha, where assets fell to $2.5 billion last year from a peak of $12 billion in 2007.

Goldman Sachs confirmed the departures but declined further comment. The retirements were reported first by financial news blog Clusterstock.

Global Alpha had been Goldman’s largest hedge fund before volatile markets in 2007 led to steep losses and a wave of redemptions. The fund continued to struggle last year.

Replacing Carhart and Iwanowski will be Katinka Domotorffy, most recently head of strategy at Goldman’s quantitative group, a person familiar with the situation said. Domotorffy will be assisted by co-chief investment officers Kent Daniel, Bill Fallon and Robert Jones, the person said.

Carhart had been head of the quant investment strategies group and co-chief investment officer with Iwanowski of quant macro and fixed income strategies. Carhart also was co-CIO, with Jones, of quant equity strategies, the person familiar explained.

Jones will continue as lead manager of quant equity strategies, along with Domotorffy and Daniel, who had been co-head of research with De Santis, the person said.

Domotorffy will be co-head of quant macro and fixed income strategies with Fallon, the senior portfolio manager of the group, the person said.

Quantitative managers use computer models to buy and sell securities.

Reporting by Joseph Giannone; Editing Bernard Orr