Goldman Sachs, Like the Leopard, Cannot Change Its Spots

In case you thought that Goldman Sachs actually does make sure that its clients come first, then read the following article to disenchant yourself:

GMAMX:  Goldman Sach[s]'s Muppet Fund of Funds
By Barry Ritholtz - The Big Picture

In our day job, we have a Fiduciary relationship with our clients. A Fiduciary has a legal obligation where all actions are performed for the benefit of the client. It is a much higher duty of care than the typical “Suitability” standard, which essentially says you cannot sell Facebook IPO shares to Grandma. We sit on the same side of the table as our investors, as opposed to adversaries looking to “monetize” clients.

So you can imagine our amusement when the prospectus for this fund made its way to our attention yesterday:

Goldman Sachs Multi-Manager Alternatives Fund (GMAMX)

It is a mutual fund of hedge funds, with all the layers of fees costs and taxes you might imagine.
. . . .
As Fiduciaries, we are always seeking ways to reduce cost and risk for clients’ without compromising performance. That means making sure that muppet investments like this will not be finding its way into any of our portfolios . . .

Read the entire article here