Goldman Sachs expects clients to pull more money from its alternative funds in the first quarter of next year due to poor performance.

GSAM's alternative investment funds, which include its ailing flagship Global Alpha hedge fund, recorded zero net inflows in the three months to November, the second quarter this year it has had no new money. GSAM's alternative investment fund performance started slipping last year and inflows plummeted to zero in the second quarter of this year for the first time since 2004.