Dog Days of Alpha

Goldman injects cash to shore up a big fund but faces a major drop in performance fees.

Goldman, Sachs & Co. got a black eye in August when some of its highest-profile hedge funds plunged in value, but the blow may be worse than it first seemed.

Market turmoil slammed the firm’s $6 billion-in-assets Global Equity Opportunities hedge fund, which fell 40 percent between June 30 and August 10, prompting Goldman to bail the fund out in dramatic fashion.

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