Goldman Sachs, the fifth- biggest U.S. bank by assets,
redeemed about $250 million from hedge funds during the first quarter as it
begins to comply with rules requiring banks to reduce such investments according to a Bloomberg report.
The firm can “generally” redeem as much as 25 percent of its
holdings in hedge funds at any quarter-end with 91 days’ notice, New York-based
Goldman Sachs said in a quarterly filing today. The company had $3.06 billion
in hedge-fund stakes at the end of March, according to the filing, which didn’t
say which fund investments were pulled during the quarter.
Under the Volcker rule provision of the Dodd-Frank
financial-reform law, federally backed banks are required to limit their
investments in private equity and hedge funds to no more than 3 percent of the
fund or 3 percent of the bank’s Tier 1 capital. Goldman Sachs’s fund stakes
were worth $17.2 billion at the end of March and the firm was committed to
providing an additional $7.77 billion to the funds, the filing showed...
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