Goldman Fund Loses $989 Million: Report

A flagship hedge fund of

Goldman Sachs

(GS) - Get Report

has lost close to $1 billion since its launch in January, the

Financial Times

reports.

Goldman Sachs Investment Partners, which raised more than $6 billion, has told investors that it had lost $989 million by September. It said the fund was down about 13% in the third quarter. Year-to-date performance fell about 15.5%, the

Financial Times

reports.

The managers said the fund isn't alone in producing disappointing returns this quarter and this year and they "anticipate that these results will lead to net outflows from the hedge fund industry," reports the newspaper.

Goldman Sachs Investment Partners is managed by Raanan Agus and Kenneth Eberts, former heads of proprietary trading desks at Goldman.

More than half of the fund's losses in the third quarter were from its investments in commodities, basic materials, metals, mining, energy and agriculture. It also was hit hard by losses on convertible bonds, the

Financial Times

reports.

This article was written by a staff member of TheStreet.com.