The one area where Goldman Sachs really stumbled in 2007 was in hedge funds. The gilded firm is not used to this kind of press: Goldman Sachs leads hedge fund stragglers. According to Financial News Online, its hedge funds lost 40 percent of their value in 2007. That comes after a six percent loss in 2006 and a 40 percent gain in 2005. The firm is trying to right the boat; a lot has been made of the efforts of partners Raanan Agus and Kenneth Eberts to re-establish the brand. They'll likely raise a lot of money, but how much alpha they can generate is a whole other matter. The jury is out. For the record, the average fund ended up with a roughly 8 to 9 percent gain in 2007. Not that aggregate data matters. It really is a fund-picker's game these days.

For more:
- here's the Financial News Online article