Performance Highlight May 2008

    RNS Number : 5758Y
  Goldman Sachs Dynamic Opportunities
  08 July 2008
   
     Goldman Sachs Dynamic Opportunities Limited
    Performance Highlight
    May 2008 

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    Goldman Sachs Dynamic Opportunities Limited ("GSDO" or the "Fund") returned 0.71% net1 in the month of May (for the USD share class).

    Fourteen out of twenty managers in the portfolio posted positive returns. 

    One out of three Relative Value managers finished the month positive, while the two other managers were roughly flat in May. One
multi-strategy manager experienced gains in commodity and credit strategies; however, these gains were partially offset by losses resulting
from macro hedges.  A volatility manager detracted slightly from returns as most Asian markets experienced low levels of realized
volatility, and single stock implied volatility ended the month slightly lower.  

    Five out of seven Event Driven managers generated positive performance in May. Many of the Event Driven managers experienced broad
positive performance driven by positive events in the merger arbitrage and special situations strategies.  Liquidity in the credit markets
improved in May as spreads in the high yield and leveraged loan markets tightened and activity in the primary market picked up. Managers who
were long credit benefited from the tightening; however, some managers were positioned net short given their cautious view on the broader
markets. Portfolio hedges detracted from manager performance as did the dynamics between cash and synthetic bonds in the high yield and
leveraged loan markets.  One manager capitalized on long-biased equity exposure, particularly to European financial exchanges and U.S.
transportation names. Another manager detracted from performance as exposure to emerging markets, particularly net long exposure to India,
negatively impacted returns.   

    Five out of seven Equity Long/Short managers posted positive performance in May.  Managers generating positive performance had exposure
to energy, basic materials, technology, and short financials. Additionally, a number of managers were rewarded for increasing net exposure
during April, allowing them to capture more of the market upside during May.  Managers generating negative performance tended to be
overweight Europe, which underperformed relative to North American markets, while managers with exposure to long volatility and long
financials also underperformed. One U.S. focused manager profited from long consumer positions.  Another manager detracted from portfolio
performance as long positions in financials sold-off during the month.

    All three of the Tactical Trading managers generated positive performance in May. Equities and commodities trading, particularly energy
related commodities trading, drove performance, while fixed income strategies experienced mixed results. One manager benefited from strong
equities performance, commodities trading, and long exposure to natural gas. However, these gains were partially offset by losses in
currencies and fixed income trading.  

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


    Performance
                                 NAV per Share   MTD    QTD    YTD   Cum ITD  Ann ITD2  Vol ITD  Inception Date

 Goldman Sachs Dynamic              2.1236      0.71%  0.99%  0.53%  17.85%    9.37%     5.18%       Aug-06
 Opportunities Limited - (USD)
 Net1
 3 Month USD LIBOR                    N/A       0.23%  0.44%  1.60%   9.40%    5.02%     0.22%       Aug-06
 Goldman Sachs Dynamic              1.6501      0.86%  1.26%  0.72%  15.13%    7.99%     5.09%       Aug-06
 Opportunities Limited - (EUR)
 Net1
 3 Month EUR LIBOR                    N/A       0.39%  0.77%  1.93%   7.60%    4.08%     0.17%       Aug-06
 Goldman Sachs Dynamic              1.1611      0.87%  1.33%  1.27%  18.18%    9.54%     5.04%       Aug-06
 Opportunities Limited - (GBP)
 Net1
 3 Month GBP LIBOR                    N/A       0.50%  0.98%  2.45%  10.62%    5.66%     0.15%       Aug-06
    Portfolio Characteristics (Reflects USD Share Class)1
                     Excess Return            Fund          Standard Deviation    Sharpe    Beta MSCI World (Hgd     Beta Leh Agg
                  Annualized (Net)2,3       Annualized                                            to USD)
                                              (Net)2                                      
 Last 12 Months          0.81%                5.54%               5.00%            0.16             0.18                -0.52
 Since Inception         4.35%                9.37%               5.18%            0.84             0.21                -0.67
    Cumulative Performance (Reflects USD Share Class)1
 Date    Fund (Net)
 Aug-06    0.90%
 Sep-06    -1.90%
 Oct-06    -0.38%
 Nov-06    1.88%
 Dec-06    3.44%
 Jan-07    4.97%
 Feb-07    4.92%
 Mar-07    6.83%
 Apr-07    8.87%
 May-07    11.67%
 Jun-07    12.40%
 Jul-07    13.11%
 Aug-07    11.77%
 Sep-07    13.54%
 Oct-07    17.27%
 Nov-07    16.79%
 Dec-07    17.24%
 Jan-08    15.76%
 Feb-08    18.42%
 Mar-08    16.69%
 Apr-08    17.03%
 May-08    17.85%


    Return Comparison (Inception-To-Date) (Reflects USD Share Class)1
                          Annualized Return2   Risk
 Fund (Net)                     9.37%         5.18%
 MSCI World (Hgd to USD)        4.46%         11.02%
 Leh Agg                        6.51%         2.71%
    Weights4
 Sectors                %     ž of Core Managers  ž of Niche Managers
 Equity Long / Short  32.46%          4                    3
 Event Driven         36.47%          4                    3
 Relative Value       8.85%           2                    1
 Tactical Trading     22.22%          3                    0

 Overall            %     ž of Managers
 Core Allocation  72.72%       13
 Niche Exposure   27.28%        7
    Attribution (Reflects USD Share Class)5,6
                      Contribution to Fund Returns
 Sector                 MTD      QTD        YTD
 Equity Long / Short   0.48%    0.73%     -1.35%
 Event Driven          0.25%    0.58%     -0.20%
 Relative Value        0.11%    -0.02%    -0.06%
 Tactical Trading      0.10%    0.14%      3.00%
    Performance Analysis - Sectors (Reflects USD Share Class)5,7
 Sector               Portfolio Weight4      MTD    QTD     YTD        ITD    Ann ITD2  Vol ITD     Inception Date
 Equity Long / Short       32.46%           1.48%  2.27%   -4.08%     23.74%   12.32%    9.57%          Aug-06
 Event Driven              36.47%           0.69%  1.61%   -0.76%     22.63%   11.77%    4.69%          Aug-06
 Relative Value             8.85%           1.22%  -0.02%  -0.35%     -4.74%   -2.61%   16.62%          Aug-06
 Tactical Trading          22.22%           0.46%  0.62%   15.21%     52.96%   26.09%    7.51%          Aug-06
    Performance Analysis - Overall (Reflects USD Share Class)5,7
 Sector           Portfolio Weight4      MTD    QTD    YTD        ITD    Ann ITD2  Vol ITD      Date
 Core Allocation       72.72%           0.96%  1.39%  2.63%      22.09%   11.50%    6.36%      Aug-06
 Niche Exposure        27.28%           0.91%  1.54%  -0.67%     27.97%   14.40%    5.63%      Aug-06

    Monthly Performance (Reflects USD Share Class)5
 Year   Jan     Feb     Mar     Apr    May    Jun    Jul    Aug     Sep     Oct    Nov     Dec    Year
 2008  -1.26%  2.30%   -1.46%  0.29%  0.71%    -      -      -       -       -      -       -    0.53%
 2007  1.48%   -0.05%  1.82%   1.91%  2.57%  0.65%  0.64%  -1.19%  1.58%   3.28%  -0.40%  0.38%  13.34%
 2006    -       -       -       -      -      -      -    0.90%   -2.78%  1.54%  2.27%   1.53%  3.44%

    GSDO's Investments by Manager Name8,9
 Sector / Manager                Strategy                                 Holding
 Equity Long / Short                                                       
 AKO Capital                     Europe Diversified                       Niche
 Gartmore                        Emerging Markets                         Niche
 Glenview                        US Diversified                           Core
 Karsch                          US Diversified                           Core
 Marble Bar (Jandakot)           Europe Diversified (Short-Term Trading)  Niche
 Tosca                           Global Diversified                       Core
 TPG-Axon Capital                Global Diversified                       Core
 Event Driven                                                              
 Anchorage                       Credit Opportunities / Distressed        Core
 Eton Park                       Multi-Strategy                           Core
 Och-Ziff                        Multi-Strategy                           Core
 Silver Point                    Credit Opportunities / Distressed        Niche
 Spinnaker (Global Opportunity)  Emerging Markets                         Niche
 Spinnaker (Global Emerging      Emerging Markets                         Niche
 Markets)
 The Children's Investment Fund  Multi-Strategy                           Core
 Tisbury                         Multi-Strategy                           Niche
 Relative Value                                                            
 Artradis                        Volatility Trading                       Niche
 Stark                           Multi-Strategy                           Core
 Tactical Trading                                                          
 Brevan Howard                   Macro - Discretionary                    Core
 D.E. Shaw                       Macro - Model                            Core
 Moore                           Macro - Discretionary                    Core
 Total Number of Allocations:
 20


    Endnotes
    Past performance is not indicative of future results, which may vary. Please see Disclosures for important information.

    References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time
(each, an "index") are provided for your information only. References to the indices do not imply that the portfolio will achieve returns,
volatility or other results similar to the indices. The composition of the indices may not reflect the manner in which a portfolio is
constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations,
volatility or tracking error targets, all of which are subject to change over time. Information regarding the Fund's investment objectives
is contained in the Fund's latest report and accounts, but is subject to amendment. Source for index data: Bloomberg. 
    This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political
conditions and should not be construed as research or investment advice or a recommendation to buy or sell investments in the Fund or any
other investments mentioned in this report or to follow any investment strategy. Furthermore, this report should not be construed as an
invitation or inducement to engage in investment activity in the Fund. 
    1     Performance is final and unaudited. The figures published here are final as of 30/05/2008, calculated as of 01/07/2008, but are
potentially subject to revision. Returns are presented in the currency displayed. 
    2     Returns less than 12 months are cumulative, not annualized.
    3     This is the excess return over the risk-free rate (3 Month USD LIBOR).
    4     Does not include cash. The Investment Manager may change the allocations over time. The allocations noted before should not be
deemed representative of allocations in the future. Allocations based upon month-end valuations as of 30/05/2008, calculated as of
01/07/2008. Figures may not sum to 100% due to rounding.  
    5     Performance is final and unaudited. The figures published here are final as of 30/05/2008, calculated as of 01/07/2008, but are
potentially subject to revision. 
    6     Contribution data is geometrically calculated based on a monthly time series. Data will not arithmetically sum to fund total.
Cumulative geometric returns for less than 12 months are calculated as follows: (1+r1)*(1+r2)***(1+rn)-1. Annualized geometric returns for
returns greater than 12 months are calculated as follows: [(1+r1)*(1+r2)***(1+m)]12/m -1. 
    7     Sector and overall returns are net of underlying manager fees but gross of Goldman Sachs management and incentive fees. Presented
in USD unless otherwise stated. 
    8     As of 30/05/2008, calculated as of 01/07/2008. This information discusses general market activity, industry or sector trends, or
other broad-based economic, market or political conditions and should not be construed as research or investment advice or a recommendation
to buy or sell investments in the Fund or any other investments mentioned in this report or to follow any investment strategy. Furthermore,
this report should not be construed as an invitation or inducement to engage in investment activity in the Fund. 
    9     This is a list of all GSDO managers excluding Amaranth. Amaranth has been excluded because it is a holding (a) that comprises less
than 1% of GSDO's assets and (b) from which GSDO has submitted a full redemption form. The list is subject to change without notice to
investors and therefore may not be an indication of the ten largest investments that currently comprise the Fund's portfolio. 

    Disclosures
    Opinions and views expressed are current opinions as of the date appearing in this material only. No part of this material may be i)
copied, photocopied or duplicated in any form, by any means; or ii) redistributed without the prior written consent of Goldman Sachs Hedge
Fund Strategies LLC. 
    This report does not form part of, and must not be used for the purposes of, any offering of shares in the Fund.
    This material has been prepared by Goldman Sachs Asset Management (GSAM) and/or Goldman Sachs International (GSI) and is not a product
of the Goldman Sachs Global Investment Research (GIR) Department. The views and opinions expressed may differ from those of the GIR
Department or other departments or divisions of Goldman Sachs and its affiliates. Investors are urged to consult with their financial
advisors before buying or selling any securities. This information may not be current and neither GSAM nor GSI has an obligation to provide
any updates or changes. 
    References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time
(each, an "index") are provided for your information only. References to the indices do not imply that the portfolio will achieve returns,
volatility or other results similar to the indices. The composition of the indices may not reflect the manner in which a portfolio is
constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations,
volatility or tracking error targets, all of which are subject to change over time. Information regarding portfolio objectives is contained
in the prospectus as amended from time to time. Source for index data: Bloomberg. 
    Indices are unmanaged. The figures for the index reflect the reinvestment of dividends but do not reflect the deduction of any fees or
expenses which would reduce returns. Investors cannot invest directly in indices.
    Effect of fees on performance: 
    The following table provides a simplified example of the effect of management and incentive fees on portfolio returns. For example,
assume a portfolio has a steady investment return, gross of fees, of 0.5% per month and total management fees of 0.1250% per month of the
market value of the portfolio on the last day of the month and incentive fees of 10% of net profits. Management fees and incentive fees are
deducted from the market value of the portfolio on that day. There are no cash flows during the period. The table shows that, assuming that
other factors such as investment return and fees remain constant, the difference increases due to the compounding effect over time. Of
course, the magnitude of the difference between gross-of-fee and net-of-fee returns will depend on a variety of factors, and the example has
been intentionally simplified.
    Period Gross Return Net Return Differential  
    1 year 6.17% 4.13% 2.04% 
    2 years 12.72% 8.42% 4.29%
    10 years 81.94% 49.83% 32.11%
    MSCI World Index: Morgan Stanley Capital International's market capitalization weighted index is composed of companies representative of
the market structure of 22 developed market countries in North America, Europe, and the Asia/Pacific Region. The index is calculated without
dividends, with net or with gross dividends reinvested, in both US dollars and local currencies.
    Lehman Brothers Aggregate Index: The index is composed of securities from Lehman Brothers Government/Corporate Bond Index,
Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. The index's total return consists of price
appreciation/depreciation plus income as a percentage of the original investment. Indexes are rebalanced monthly by market capitalization. 

    Supplemental Risk Disclosure for All Potential Investors in Hedge Funds and other private investment funds (collectively, "Alternative
Investments") 
    In connection with your consideration of a direct or indirect investment in any Alternative Investment, you should be aware of the
following risks:
    Alternative Investments are not subject to the same regulatory requirements or governmental oversight as mutual funds. The sponsor or
manager of any Alternative Investment may not be registered with any governmental agency.
    Alternative Investments often engage in leverage and other investment practices that are extremely speculative and involve a high degree
of risk. Such practices may increase the volatility of performance and the risk of investment loss, including the loss of the entire amount
that is invested.
    Alternative Investments may purchase instruments that are traded on exchanges located outside the United States that are "principal
markets" and are subject to the risk that the counterparty will not perform with respect to contracts. Furthermore, since there is generally
less government supervision and regulation of foreign exchanges, Alternative Investments are also subject to the risk of the failure of the
exchanges and there may be a higher risk of financial irregularities and/or lack of appropriate risk monitoring and controls.
    Past performance is not a guide to future performance and the value of Alternative Investments and the income derived from them can go
down as well as up. Future returns are not guaranteed and a loss of principal may occur.
    Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and
unrealized gains, and such fees may offset all or a significant portion of such Alternative Investment's trading profits.
    Alternative Investments are offered in reliance upon an exemption from registration under the Securities Act of 1933, as amended, for
offers and sales of securities that do not involve a public offering in the United States. 
    Alternative Investments may themselves invest in instruments that may be highly illiquid and extremely difficult to value. This also may
limit your ability to transfer your investment.
    Alternative Investments generally are not required to provide their investors with periodic pricing or valuation information.
    There may be conflicts of interest between the Alternative Investment and other service providers, including the investment manager and
sponsor of the Alternative Investment.
    Alternative Investments may involve complex tax and legal structures. Investment in any particular Alternative Investment, or
Alternative Investments generally, is only suitable for sophisticated investors for whom such an investment does not constitute a complete
investment program and who fully understand and are willing to assume the risks involved in such Alternative Investment. You are urged to
consult with your own tax, accounting and legal advisers regarding any investment in any Alternative Investment.
    Investors are also urged to take appropriate advice regarding any applicable legal requirements and any applicable taxation and exchange
control regulations in the country of their citizenship, residence or domicile which may be relevant to the subscription, purchase, holding,
exchange, redemption or disposal of any Alternative Investment.
    We refer you to the prospectus for a more complete discussion of the risks relating to an investment in any particular Alternative
Investment. You are urged to read all applicable offering materials, including the entire prospectus, prior to any investment in any
Alternative Investment. Investment Restrictions apply to many of Goldman Sachs' Alternative Investments. Goldman Sachs Hedge Fund Strategies
LLC (HFS) is the Investment Manager to the Fund referenced herein. HFS, a US registered investment adviser, is part of Goldman Sachs Asset
Management and is a wholly owned subsidiary of The Goldman Sachs Group, Inc.
    There may be conflicts of interest relating to the Fund and its service providers, including Goldman Sachs and its affiliates, who are
engaged in businesses and have interests other than that of managing, distributing and otherwise providing services to the Fund. These
activities and interests include potential multiple advisory, transactional and financial and other interests in securities and instruments
that may be purchased or sold by the Fund, or in other investment vehicles that may purchase or sell such securities and instruments. These
are considerations of which investors in the Fund should be aware. Additional information relating to these conflicts is set forth in the
latest prospectus for the Fund.
    This document has been communicated outside of the United States by Goldman Sachs International, Peterborough Court, 133 Fleet Street,
London, EC4A 2BB, authorised and regulated by the Financial Services Authority. 
    This report may also be communicated in the United Kingdom by Goldman Sachs Asset Management International which is authorised and
regulated by the Financial Services Authority (FSA).
    Prospective investors should inform themselves as to any applicable legal requirements and taxation and exchange control regulations in
the countries of their citizenship, residence or domicile which might be relevant.
    Investors should consider that the returns that they will receive will be a function of the share price of the Fund. While we would
expect that the Fund would trade substantially in line with its underlying NAV, investors should consider that the traded status of the Fund
could lead it to have a significantly higher volatility and correlation to equities.
    Investors should consider that the liquidity of their investment will be a function of the market demand for the shares of the Fund.
There is the potential for the Fund to trade at a discount to NAV and lack of market demand may lead to their being a less liquid market.
    Copyright © 2008 Goldman, Sachs & Co. All Rights Reserved.


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