Goldman Sachs Group Inc.'s Global Alpha hedge fund rebounded this year after a 40 percent plunge in 2007, said three people with knowledge of its performance.

Global Alpha, once Goldman's largest hedge fund, rose about 19 percent through mid-June, said the people, who declined to be identified because the returns are confidential. Goldman's Global Equities Opportunities fund, which required a $3 billion cash infusion last year, rose about 7 percent, the people said.

Kudos to them, but this doesn't mean they've regained half the lost ground. A 19% rise following a 40% plunge would put Global Alpha only at 71% of where it started before the credit crisis -- still almost a 30% decline.

If Global Alpha managed a 40% gain this year -- which would be pretty phenomenal -- they would still be 16% underwater relative to the same starting point.

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