Goldman Sachs Global Multi-Manager Alternatives Portfolio

The Goldman Sachs Global Multi-Manager Alternatives Portfolio (GMMAP) received The Hedge Fund Journal’s UCITS Hedge award for “Best Performing Fund in 2016 (Multi-Manager - Liquid Alternatives category)” over a one year period ending in December 2016, based on its risk-adjusted returns. In absolute terms, GMMAP has also performed well, outpacing the HFRX Global Hedge Fund Index, as shown in Fig.1.

“We designed the product to offer investors access to a diversified, multi-strategy portfolio of high quality hedge funds and other investment managers, with daily liquidity and appropriate fees,” says GSAM Managing Director, Robert Mullane, who sits in Goldman Sachs’ London offices on Fleet Street. GMMAP assets have already doubled to $600 million since this particular product was launched in December 2015. Additionally, the start of the GMMAP strategy, managed by the Alternative Investments & Manager Selection (AIMS) Group, conceptually dates back to 2013, “when we launched the same strategy for GSAM’s US clients,” Mullane recalls.

The US strategy, which is run from New York by Kent Clark, Betsy Gorton and Ryan Roderick, currently contains eight of the nine managers in the UCITS. The GMMAP strategy was more of a product evolution than a fresh launch. It might seem bold for GSAM, which has been structuring UCITS for over 20 years, to have jettisoned its award-winning former fund of alternative UCITS funds. The firm felt that a fairly radical restructuring of the fund of funds business model was timely. “We wanted to evolve to a more innovative solution, and it has been well received by third party distributors, private banks and even pension funds,” explains Mullane.