KKR & Co LP said on Sunday it had decided to terminate a hedge fund that invested in stocks which the private equity firm had launched in 2011 after poaching a team of proprietary traders from investment bank Goldman Sachs Group Inc.The move shows some of the challenges that alternative asset managers still face in capitalizing on the retrenchment of banks from some investment activities that regulators and lawmakers cracked down on in the aftermath of the 2008 financial crisis.In 2010, KKR co-founders Henry Kravis and George Roberts had described the hiring of nine members of Goldman Sachs' proprietary trading group, led by Bob Howard, as an ideal fit with their objective of strengthening KKR's product offering.The co-ordinated exodus of an entire team from Goldman Sachs remains to this day one of the most striking examples of the impact of the "Volcker rule," which limits the extent to which banks can bet on some investments with their own capital.
The Goldman Sachs Group, Inc. (Goldman Sachs), is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Shares of GS fell by 0.58% or $-0.93/share to $159.81. In the past year, the shares have traded as low as $148.71 and as high as $181.13. On average, 3178720 shares of GS exchange hands on a given day and today's volume is recorded at 2234936.
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