In the turmoil of today’s markets, there is an ongoing debate about whether a fund is being bailed out or is a parent company simply injecting new money. Liz Moyer has written about this subject in Forbes.

“Goldman (nyse: GS http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=GS - news http://www.forbes.com/markets/company_news.jhtml?ticker=GS- people http://www.forbes.com/peopletracker/results.jhtml?startRow=0&name=&ticker=GS) injected $2 billion of equity into its floundering Global Equity Opportunities fund on Monday, along with another $1 billion from big-ticket investors including Hank Greenberg, Richard Perry and Eli Broad. That will help shore up the long/short equity fund, which is down almost 30% so far this year–long enough for markets to stabilize and for it to get out of the tricky leveraged bets it took before markets went haywire last week.
But just to make it perfectly clear: This is not a rescue. “This is a good opportunity for us and the other investors,” said David Viniair, Goldman’s chief financial officer, on a conference call Monday.”

This article goes on to explain some of the underlying causes of the market turmoil:

“Like many other managers, Goldman is experiencing the same problems with its so-called quant funds. Quant (or quantitative) funds use computer models to make investment decisions. When things started going haywire, the models broke down.
Funds caught with significant losses in credit and bond investments had to sell stock holdings to lower the risks of their overall portfolios, and so much selling in the stock market skewed it as well. Stocks that were held long fell, and stocks that were held short rose, exacerbating losses.
“A large number of quantitative managers have seen their models begin to behave in unexpected ways,” wrote Matthew Rothman, a Ph.D. research strategist at Lehman Brothers.
Sure enough, quant managers have been disclosing losses. Renaissance Technology’s $26 billion institutional equities fund is down 7% for the year through last Wednesday. Some of AQR’s funds are down as well, as, reportedly, are quant funds at Tykhe Capital, Highbridge Capital and D.E. Shaw (of which Lehman now owns 20%).”

Here is a link to the entirety of Ms. Moyer’s article:
http://www.forbes.com/business/2007/08/13/goldman-bail-out-biz-cx_lm_0813goldman.html

Mike