Goldman Sachs Global Alpha Fund

Klayman & Toskes is investigating the Goldman Sachs Alpha Fund as the fund was down over 39% for 2007. The Global Alpha Fund is a quantitative fund, meaning that its trades are determined by computers and its convoluted mathematical models. Traditionally, quantitative funds are considered low-risk instruments because they use historical benchmarks to analyze trades. The investigation is based on the models high-tech tools inability to appropriately account for sudden risk and market volatility.  The investigation is looking into potential misrepresentations made regarding the fund’s level of risk and exposure to the markets.