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Guggenheim hedge fund stumbles

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Source: Guggenheim Partners

Guggenheim Partners has slashed personnel at an internal hedge fund that hasn't lived up to big expectations.

The $220 billion asset management and investment banking firm cut at least eight senior employees in December at Guggenheim Global Trading, a roughly $600 million hedge fund unit based in the New York suburb of Purchase.

The layoffs come amid mediocre performance and little success attracting external clients at GGT, which is led by RBC and Guggenheim fund of hedge funds veterans Loren Katzovitz and Patrick Hughes. There have even been discussions about Guggenheim shedding the unit by selling its majority stake to GGT's senior executives, according to one account.

A spokesman for Guggenheim declined to comment.

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