Just a month ago, Goldman Sachs was the envy of Wall Street for its prowess in alternative investments. It seemed to have cracked the nut, making money every which way, dealing with the conflicts. Now, the company is like all the others, aiming to assure its many constituencies that all is well. But the behemoth Global Alpha fund's woes have been documented. No one was really surprised when a second fund, the $600 million North American Equity Opportunities, had also staggered, losing 15 percent this year. You can imagine the hedge fund investor relations folks are working it all out. The danger is a string of redemptions. Hopefully that will not materialize. This is a real test for Lloyd Blankfein and company. It may get worse before it gets better.  

For more:
- here's the New York Times article
- lots of quant funds in trouble? Article