Goldman makes $300m from fund rescue

Goldman Sachs made $300m last month from the rescue of one of the investment bank’s troubled hedge funds, even as external investors lost more than a fifth of their money. The bank’s Global Equity Opportunities fund, into which it injected $2bn of its own money as part of a $3bn bail-out last month, recovered strongly after the rescue but still underperformed badly for August as a whole. The paper profit positions Goldman as a big beneficiary of last month’s credit squeeze and will boost quarterly profits when the bank reports 3Q results in a fortnight, although it is also likely to suffer from a drop in the value of debt not yet syndicated.