Re: ABWTQ and ABLE or other Party
March 30th Filing
From Form 10-K Goldman Sachs Hedge Fund Partners, LLC
(Mark One)
þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2009
or
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 001-50723
Goldman Sachs Hedge Fund Partners, LLC
Goldman Sachs Global Fundamental Strategies, LLC
GFS’s investment objective is to target attractive risk-adjusted absolute returns with volatility and correlation that are lower than the broad equity markets by allocating assets to Advisors that operate primarily in the global event driven sector. As of December 31, 2009, GFS’s managing member (currently, the Managing Member) had allocated GFS’s assets, directly or indirectly, to 14 Advisor Funds, although this number may change materially over time as determined by GFS’s managing member. Prior to April 1, 2008, GFS’s managing member generally did not allocate more than 25% of GFS’s total assets to any single Advisor at the time of allocation. As of April 1, 2008, there are no restrictions on the amount of assets of GFS that its managing member can allocate to any single Advisor. Event-driven strategies seek to identify security price changes resulting from corporate events such as restructurings, mergers, takeovers, spin-offs and other special situations. Corporate event arbitrageurs generally choose their investments based on their perceptions of the likelihood that the event or transaction will occur, the amount of time that the process will take and the perceived ratio of return to risk.
Strategies that may be utilized in the event driven sector include merger arbitrage, high yield/distressed securities and special situations. Other strategies may be employed as well.
Merger Arbitrage
Merger arbitrageurs seek to capture the price spread between current market prices and the value of securities upon successful completion of a takeover or merger transaction. The availability of spreads reflects the unwillingness of other market participants to take on transaction-based risk, i.e., the risk that the transaction will not be completed and the price of the company being acquired will fall. Merger arbitrageurs specialize in evaluating this risk and seek to create portfolios that reduce specific event risk.
High Yield/Distressed Securities
High yield/distressed securities strategies invest in debt or equity securities of firms in or near bankruptcy. Advisors differ in terms of the level of the capital structure in which they invest, the stage of the restructuring process at which they invest, and the degree to which they become actively involved in negotiating the terms of the restructuring.
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Special Situations
Special situations such as spin-offs and corporate reorganizations and restructurings offer additional opportunities for event-driven Advisors. Often these strategies are employed alongside merger arbitrage or distressed investing. An Advisor’s ability to evaluate the effect of the impact and timing of the event and to take on the associated event risk is the source of the returns. Advisors differ in the degree to which they hedge the equity market risk of their portfolios.
Multi-strategy and Other
Multi-strategy Advisors invest across a range of strategies. These Advisors tend to be more opportunistic in targeting specific event driven, equity long/short and relative value strategies during differing market environments.
Individuals and entities affiliated with the GS Group, including investment funds, directors, officers, employees, partners, trustees, managers, members and any related trusts, owned approximately 57% of GFS as of December 31, 2009.
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Re: PPS Trades since BK Filing -- you just never know who has been keeping the price down.
AI
