Goldman Sachs to invest $400m in precious metals company
Goldman Sachs will invest $4 billion in a new precious metals hedge fund, it was announced Monday.
The investment, which the firm said would be part of a broader $4.3 billion effort to hedge against the global financial crisis, is a departure from its usual investment strategy of backing other companies.
Goldman Sachs said the hedge fund will invest in assets that are “strongly correlated” to the performance of its own precious metals holdings.
The fund will be led by Goldman Sachs’ chief investment officer, Peter Kaplan, who is also chairman of the investment advisory firm Guggenheim.
Kaplan previously served as the chairman of Gugna Investment Advisors, the company behind Goldman Sachs, and was a senior partner at Morgan Stanley at the height of the 2008 financial crisis.
The move follows a spate of investments in precious metal investments by companies in recent years.
Earlier this month, the New York-based bank’s main investment manager, David Rosenberg, announced that he and his partners will invest an additional $300 million in a precious metals fund.
Last week, Goldman Sachs also invested $300m in an investment fund backed by a hedge fund that invests in companies in the precious metals sector.
In addition, Goldman has also said it is planning to invest an undisclosed amount in another investment fund.