Goldman Sachs Group Inc. (GS), the fifth- biggest U.S. bank by assets, redeemed about $250 million from hedge funds during the first quarter as it begins to comply with rules requiring banks to reduce such investments.


Under the Volcker rule provision of the Dodd-Frank financial-reform law, federally backed banks are required to limit their investments in private equity and hedge funds to no more than 3 percent of the fund or 3 percent of the bank's Tier 1 capital. Goldman Sachs's fund stakes were worth $17.2 billion at the end of March and the firm was committed to providing an additional $7.77 billion to the funds, the filing showed.

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