Goldman Sachs to cut asset management investments that weighed on earnings

Goldman Sachs Group Inc’s (GS.N) asset management arm will significantly reduce the $59 billion of alternative investments that weighed on the bank’s earnings.The Wall Street giant plans to divest its positions over the next few years and replace some of those funds on its balance sheet with outside capital.

Goldman had a dismal fourth quarter, missing Wall Street profit targets by a wide margin. Like other banks struggling as company dealmaking stalls, Goldman is letting go of more than 3,000 employees in its biggest round of job cuts since the 2008 financial crisis.

The bank will provide further details on its asset plan during Goldman Sachs’ investor day on Feb. 28. Alternative assets can include private equity or real estate as opposed to traditional investments such as stocks and bonds.

This is a developing story, courtesy Reuters.