Goldman Sachs Alpha to Fail?

Alpha, as in GS’s quantitative Global Alpha fund. Someone is on the other side of every losing trade, and once one of those “someones” finds a flaw in other’s methodologies they pounce. Who’s the culprit here?

UPDATE: More on GS, from PK. This isn’t the Alpha fund getting assistance (yet), and David Viniar makes that clear. Also note that Hank Greenberg is one of the investors stepping up to help out – I find it somewhat ironic considering his previous “employer” just finished touting how comfortable they were with their fixed-income exposure, which is essentially saying “we’re not in the game, but we’d maybe, kinda like to be now.”

And still more from Mr. Kedrosky on that “other side” of the quant coin I already mentioned.

UPDATE 2: At least one fund has come clean for being other the other side of some sub-prime trades.