Portfolio Commentary

    RNS Number : 7059A
  Goldman Sachs Dynamic Opportunities
  05 August 2008
   

    Goldman Sachs Dynamic Opportunities Limited
    Performance Highlight
    June 2008 
    Market Overview

    Goldman Sachs Dynamic Opportunities Limited ("GSDO" or the "Fund") ended the month of June in negative territory across the three share
classes.

    Broadly speaking, June created challenging conditions for managers across the board. Eight out of twenty managers in the portfolio
posted positive returns.

    One out of three Relative Value managers finished the month positive. A volatility manager saw positive performance, benefiting from
increased equity market volatility in June. Another multi-strategy manager finished the month roughly flat as losses in the fundamental
equity and structured finance strategies offset gains in commodities and distressed credit positions.

    Event Driven managers experienced a challenging environment but realised substantially lower intra-month volatility than global equity
and credit markets as managers entered the month with reasonably defensive exposures. Two out of seven Event Driven managers generated
positive performance in June.  While the Fund's credit oriented managers continue to selectively add exposure, especially in the senior
parts of the capital structure, some were positioned neutral to net short given their cautious view on the broader markets and finished the
month flat to slightly negative.  One multi-strategy manager generated positive performance as gains in short positions in the U.S. more
than offset losses resulting from exposure to emerging markets, particularly net long exposure to India. Another manager detracted from
performance as gains in their U.S. book were more than offset by losses in certain European and Indian names.

    Equity Long/Short managers generally faced a tough market. Although many of the Equity Long/Short managers within the Fund outperformed
the broad global equity markets, there was a wide dispersion of returns among managers. Two out of seven Equity Long/Short managers posted
positive performance in June.  Top performing managers benefited from short positions in financials, consumer discretionary, and industrials
as well as select long positions in materials and energy.  Some managers were defensively positioned with lower net exposure coming into
June; however, managers who had recently increased net exposure and removed portfolio hedges tended to under-perform their peers. The worst
performing managers saw losses from long financials and industrial positions and short energy/materials positions, in addition to long
exposure in emerging markets and Europe.  Another manager detracted from returns as long positions in the financials and consumer cyclical
sectors traded down over the month.

    All three of the Tactical Trading managers generated positive performance in June.  Many managers were able to capture profits from
trends across markets, such as in commodities, where long-biased positioning in energy and agriculture has helped as many products have
rallied strongly; and in equities, where short positions have been profitable.  One manager experienced gains driven largely by the strong
results in equity strategies, while fixed income trading was roughly flat on the month. Another manager posted more modest returns as gains
in discretionary trading were partially offset by losses in the equity statistical arbitrage strategy.  

    Sources: Bloomberg, Financial Times, Reuters, The New York Times, The Wall Street Journal. 


Click on, or paste the following link into your web browser, to view the associated PDF document.

    
http://www.rns-pdf.londonstockexchange.com/rns/7059A_-2008-8-5.pdf

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
MSCDGGGRDKMGRZM