##### 



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-K
 (Mark
One)
 þ
    
    Annual Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 For the fiscal year ended December 31, 2006
 OR
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 For the transition period from  to
 Commission file number: 000-50723
 Goldman Sachs Hedge Fund Partners, LLC
  Delaware
    
    04-3638229(State or Other Jurisdiction of
    
    (I.R.S. Employer Identification No.)Incorporation or Organization)701 Mount Lucas RoadPrinceton, New Jersey
    
    08540(Address of Principal Executive Offices)
    
    (Zip Code)
 (609) 497-5500
 (Registrants Telephone Number, including Area Code)
  Name of each exchangeTitle of each class
    
    on which registered
   o þ
 o þ
 þ o
 þ
  o o þ
 o þ
  Documents Incorporated By Reference




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##### 



TABLE OF CONTENTS
 PagePART IITEM 1. BUSINESS
    
    
    1PERFORMANCE
OF THE COMPANY
    
    
    6ITEM 1A. RISK FACTORS
    
    
    50ITEM
1B. UNRESOLVED STAFF COMMENTS
    
    
    83ITEM 2. PROPERTIES
    
    
    83ITEM 3. LEGAL PROCEEDINGS
    
    
    83ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
    
    
    83PART IIITEM 5. MARKET FOR THE REGISTRANTS COMMON EQUITY; RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
    
    
    84ITEM 6. SELECTED FINANCIAL DATA
    
    
    86ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    87ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
    
    106ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
    
    
    109ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
    
    
    110ITEM 9A. CONTROLS AND PROCEDURES
    
    
    110ITEM 9B. OTHER INFORMATION
    
    
    110PART IIIITEM 10. DIRECTORS, EXECUTIVE OFFICERS OF THE MANAGING MEMBER AND REGISTRANT AND CORPORATE GOVERNANCE
    
    
    110ITEM 11. EXECUTIVE COMPENSATION
    
    
    114ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
    
    
    115ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
    
    
    115ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
    
    
    118PART IVITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
    
    
    119
  -i-




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##### 



PART I
 
 ITEM 1. BUSINESS
 GOLDMAN SACHS HEDGE FUND PARTNERS, LLC
   INVESTMENT PROGRAM
 Investment Objective and Approach
  1




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##### 



PERFORMANCE OF THE COMPANYDescription of the Investment Funds and the Performance
of the Investment Funds
  PERFORMANCE OF THE COMPANYDirect
Allocations to Advisors.
 RISK FACTORS
  Allocation Among the Investment Funds
  2




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##### 



RISK FACTORSGeneral RisksRisks Related to the Company and the Investment
Funds Performance and OperationThere Can Be No Assurance that the Managing Members Decisions
Regarding Risk Allocations will be Successful; Inaccurate Information Provided by the Advisors May
Have a Material Adverse Effect on Implementing the Companys Investment Objective Special
Risks of the Companys StructureRisks Associated with the Company Investing in Other
EntitiesAdvisors May Have Limited Capacity to Manage Additional Investment Fund Investments, Which
Could Cause Dilution or Concentration of the Companys Investments or Negatively Affect Allocation
of Investments
 RISK FACTORSSpecial Risks of the Companys StructureRisks Related to the Companys StructureThe
Companys Financial Statements are, and in the Future Will Ultimately be, Based on Estimates of
Valuations Provided by Third Party Advisors Which May not be Accurate or May Need to be Adjusted in
the Future Risks Associated with the Company Investing in Other EntitiesValuation of the
Investment Funds Investments Will be Based Upon Valuations Provided by the Advisors Which are
Generally not Audited; Uncertainties in Valuations Could Have a Material Adverse Effect on the
Companys Net Assets MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONSCritical Accounting Policies and Estimates.
 3




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##### 



December 31, 2006
 Fair Value of
    
    Fair Value ofFair Value of
    
    Companys
    
    Companys InvestmentCompanys
    
    Investment as a % of
    
    as a % of AdjustedInvestment Fund
    
    Investment in $ Amount
    
    Members Equity (1)
    
    Members Equity (2)GELS
    
    $
    243,737,514
    
    
    
    36.81
    %
    
    
    35.54
    %GED
    
    $
    240,699,867
    
    
    
    36.36
    %
    
    
    35.10
    %GRV
    
    $
    98,479,997
    
    
    
    14.87
    %
    
    
    14.36
    %GTT
    
    $
    103,332,963
    
    
    
    15.61
    %
    
    
    15.07
    %Total
    
    $
    686,250,341
    
    
    
    103.65
    %(3)
    
    
    100.07
    %(3)
 
 (1)
    
    Members equity, used in the calculation of the investments as a percentage of members
equity, is reduced for member redemptions that are paid after the balance sheet date.(2)
    
    Adjusted members equity, used in the calculation of the investments as a
percentage of adjusted members equity, represents members equity excluding
$23,701,199 in Redemptions payable at December 31,
2006.(3)
    
    The total value of the Companys investments in the Investment Funds
exceeded 100% of members equity and adjusted members equity, respectively, because
members equity and adjusted members equity both reflected
certain accrued
liabilities of the Company, including fees and expenses, and, in addition, members
equity also reflected redemptions payable at December 31, 2006. December 31, 2005
 Fair Value of
    
    Fair Value ofFair Value of
    
    Companys
    
    Companys InvestmentCompanys
    
    Investment as a % of
    
    as a % of AdjustedInvestment Fund
    
    Investment in $ Amount
    
    Members Equity (1)
    
    Members Equity (2)GELS
    
    $
    294,096,911
    
    
    
    37.97
    %
    
    
    26.21
    %GED
    
    $
    301,443,254
    
    
    
    38.91
    %
    
    
    26.86
    %GRV
    
    $
    317,728,892
    
    
    
    41.02
    %
    
    
    28.32
    %GTT
    
    $
    211,060,876
    
    
    
    27.25
    %
    
    
    18.81
    %Total
    
    $
    1,124,329,933
    
    
    
    145.15
    %(3)
    
    
    100.20
    %(3)
 
 (1)
    
    Members equity, used in the calculation of the investments as a percentage of members
equity, is reduced for member redemptions that are paid after the balance sheet date.(2)
    
    Adjusted members equity, used in the calculation of the investments as a
percentage of adjusted members equity, represents members equity excluding
$347,523,596 in Redemptions payable at December 31,
2005.(3)
    
    The total value of the Companys investments in the Investment Funds
exceeded 100% of members equity and adjusted members equity, respectively, because
members equity and adjusted members equity both reflected
certain accrued
liabilities of the Company, including fees and expenses, and, in addition, members
equity also reflected redemptions payable at December 31, 2005. 4




---



##### 



December 31, 2004
 Fair Value of
    
    Fair Value ofFair Value of
    
    Companys
    
    Companys InvestmentCompanys
    
    Investment as a % of
    
    as a % of AdjustedInvestment Fund
    
    Investment in $ Amount
    
    Members Equity (1)
    
    Members Equity (2)GELS
    
    $
    226,276,134
    
    
    
    23.63
    %
    
    
    20.84
    %GED
    
    $
    268,186,702
    
    
    
    28.01
    %
    
    
    24.69
    %GRV
    
    $
    350,409,379
    
    
    
    36.60
    %
    
    
    32.27
    %GTT
    
    $
    248,081,137
    
    
    
    25.91
    %
    
    
    22.84
    %Total
    
    $
    1,092,953,352
    
    
    
    114.15
    %(3)
    
    
    100.64
    %(3)
 
 (1)
    
    Members equity, used in the calculation of the investments as a percentage of members
equity, is reduced for member redemptions that are paid after the balance sheet date.(2)
    
    Adjusted members equity, used in the calculation of the investments as a
percentage of adjusted members equity, represents members equity excluding
$128,546,636 in Redemptions payable at December 31,
2004.(3)
    
    The total value of the Companys investments in the Investment Funds
exceeded 100% of members equity and adjusted members equity, respectively, because
members equity and adjusted members equity both reflected certain accrued
liabilities of the Company, including fees and expenses, and, in addition, members
equity also reflected redemptions payable at December 31, 2004. December 31, 2003
 Fair Value of
    
    Fair Value ofFair Value of
    
    Companys
    
    Companys InvestmentCompanys
    
    Investment as a % of
    
    as a % of AdjustedInvestment Fund
    
    Investment in $ Amount
    
    Members Equity (1)
    
    Members Equity (2)GELS
    
    $
    140,117,348
    
    
    
    15.01
    %
    
    
    14.48
    %GED
    
    $
    221,899,920
    
    
    
    23.78
    %
    
    
    22.93
    %GRV
    
    $
    359,311,989
    
    
    
    38.50
    %
    
    
    37.12
    %GTT
    
    $
    249,583,571
    
    
    
    26.74
    %
    
    
    25.79
    %Total
    
    $
    970,912,828
    
    
    
    104.03
    %(3)
    
    
    100.32
    %(3)
 
 (1)
    
    Members equity, used in the calculation of the investments as a percentage of members
equity, is reduced for member redemptions that are paid after the balance sheet date.(2)
    
    Adjusted members equity, used in the calculation of the investments as a
percentage of adjusted members equity, represents members equity excluding
$34,529,625 in Redemptions payable at December
31, 2003.(3)
    
    The total value of the Companys investments in the Investment Funds
exceeded 100% of members equity and adjusted members equity, respectively, because
members equity and adjusted members equity both reflected certain accrued
liabilities of the Company, including fees and expenses, and, in addition, members
equity also reflected redemptions payable at December 31, 2003. 5




---



##### 



December 31, 2002
 Fair Value of CompanysFair Value of Companys
    
    Investment as a % ofInvestment Fund
    
    Investment in $ Amount
    
    Members EquityGELS
    
    $
    53,355,947
    
    
    
    13.92
    %GED
    
    $
    84,386,691
    
    
    
    22.02
    %GRV
    
    $
    146,920,415
    
    
    
    38.34
    %GTT
    
    $
    98,921,553
    
    
    
    25.81
    %Total
    
    $
    383,584,606
    
    
    
    100.09
    %(1)
 
 (1)
    
    The total value of the Companys investments in the Investment Funds exceeded 100%
of the Companys members equity, because the Companys members equity reflected
certain accrued liabilities of the Company, including fees and expenses. 
 PERFORMANCE OF THE COMPANY
 FEES AND EXPENSES.
 6




---



##### 



January 1, 2006  December 31, 2006
 Month of Issuance of
    
    Net Return for PeriodSeries of Units(1)
    
    Units
    
    Outstanding(2)Class A Series 1
    
    
    
    9.03%Class A Series 21
    
    January
    
    9.03%Class A Series 22
    
    February
    
    6.00%Class A Series 23
    
    March
    
    5.51%Class A Series 24
    
    April
    
    3.82%Class A Series 25
    
    May
    
    2.32%Class A Series 26
    
    June
    
    4.28%Class A Series 27
    
    July
    
    4.74%Class A Series 28
    
    August
    
    4.84%Class A Series 29
    
    September
    
    4.06%Class A Series 30
    
    October
    
    4.77%Class A Series 31
    
    November
    
    3.21%Class A Series 32
    
    December
    
    1.37%
 
 (1)
    
    As of December 31, 2006, the Company had 13 series of Class A units outstanding.
Each series of Class A units is identical in every regard except with respect to its
individualized incentive allocation base. Effective January 1, 2007, Class A Series
21 through Class A Series 32 units were converted into Class A Series 1 units. Class
A Series (other than Class A Series 1) issued in future periods represent issuances
of new series and are different from those series.(2)
    
    The net return is shown for the month of issuance through December 31,
2006. 7




---



##### 



January 1, 2005  December 31, 2005
 Month of Issuance of
    
    Net Return for PeriodSeries of Units(1)
    
    Units
    
    Outstanding(2)Class A Series 1
    
    
    
    4.57%Class A Series 9
    
    January
    
    4.57%Class A Series 10
    
    February
    
    5.17%Class A Series 11
    
    March
    
    4.12%Class A Series 12
    
    April
    
    4.69%Class A Series 13
    
    May
    
    6.28%Class A Series 14
    
    June
    
    5.87%Class A Series 15
    
    July
    
    4.71%Class A Series 16
    
    August
    
    3.26%Class A Series 17
    
    September
    
    2.31%Class A Series 18
    
    October
    
    1.04%Class A Series 19
    
    November
    
    2.77%Class A Series 20
    
    December
    
    1.46%
 
 (1)
    
    As of December 31, 2005, the Company had 13 series of Class A units outstanding.
Each series of Class A units is identical in every regard except with respect to its
individualized incentive allocation base. Effective January 1, 2006, Class A Series
9 through Class A Series 20 units were converted into Class A Series 1 units. Class A
Series (other than Class A Series 1) issued in future periods represent issuances of
new series and are different from those series.(2)
    
    The net return is shown for the month of issuance through December 31,
2005. 8




---



##### 



January 1, 2004  December 31, 2004
 Month of Issuance of
    
    Net Return for PeriodSeries of Units(1)
    
    Units
    
    Outstanding(2)Class A Series 1
    
    January
    
    
    5.53
    %Class A Series 2
    
    February
    
    
    4.48
    %Class A Series 3
    
    July
    
    
    4.95
    %Class A Series 4
    
    August
    
    
    5.73
    %Class A Series 5
    
    September
    
    
    5.72
    %Class A Series 6
    
    October
    
    
    4.98
    %Class A Series 7
    
    November
    
    
    4.01
    %Class A Series 8
    
    December
    
    
    1.12
    %
 
 (1)
    
    As of December 31, 2004, the Company had 8 series of Class A units outstanding.
Each series of Class A units is identical in every regard except with respect to its
individualized incentive allocation base. Effective January 1, 2005, Class A Series 2
through Class A Series 8 units were converted into Class A Series 1 units. Class A
Series (other than Class A Series 1) issued in future periods represent issuances of
new series and are different from those series.(2)
    
    The net return is shown for the month of issuance through December 31,
2004. January 1, 2003  December 31, 2003
 Month of Issuance of
    
    Net Return for PeriodSeries of Units(1)
    
    Units
    
    Outstanding(2)Class A Series 1
    
    January
    
    9.60%Class A Series 2
    
    February
    
    7.98%Class A Series 3
    
    March
    
    6.87%Class A Series 4
    
    April
    
    7.65%Class A Series 5
    
    May
    
    6.59%Class A Series 6
    
    June
    
    3.77%Class A Series 7
    
    July
    
    3.74%Class A Series 8
    
    August
    
    4.64%Class A Series 9
    
    November
    
    1.65%Class A Series 10
    
    December
    
    1.35%
 
 (1)
    
    As of December 31, 2003, the Company had 10 series of Class A units outstanding.
Each series of Class A units is identical in every regard except with respect to its
individualized incentive allocation base. Effective January 1, 2004, Class A Series
2 through Class A Series 10 units were converted into Class A Series 1 units. Class
A Series (other than Class A Series 1) issued in future periods represent issuances
of new series and are different from those series.(2)
    
    The net return is shown for the month of issuance through December 31,
2003. 9




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##### 



April 1, 2002  December 31, 2002
 Month of Issuance of
    
    Net Return for PeriodSeries of Units(1)
    
    Units
    
    Outstanding(2)Class A Series 1
    
    April
    
    3.97%Class A Series 2
    
    May
    
    3.88%Class A Series 3
    
    June
    
    3.19%Class A Series 4
    
    July
    
    2.33%Class A Series 5
    
    August
    
    2.52%Class A Series 6
    
    September
    
    1.51%Class A Series 7
    
    October
    
    0.75%Class A Series 8
    
    November
    
    1.77%Class A Series 9
    
    December
    
    2.34%
 
 (1)
    
    As of December 31, 2002, the Company had 9 series of Class A units outstanding.
Each series of Class A units is identical in every regard except with respect to its
individualized incentive allocation base. Effective January 1, 2003, Class A Series
2 through Class A Series 9 units were converted into Class A Series 1 units. Class A
Series (other than Class A Series 1) issued in future periods represent issuances of
new series and are different from those series.(2)
    
    The net return is shown for the month of issuance through December 31,
2002. pro rata pro rata FEES AND EXPENSES
 10




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##### 



LehmanBrothers
    
    MSCICompany
    
    3 Month
    
    Aggregate
    
    World
    
    S&P 500Investment Period
    
    (1)
    
    LIBOR
    
    Index
    
    Index
    
    Index1/1/2006  12/31/2006
    
    
    9.03
    %
    
    
    5.10
    %
    
    
    4.33
    %
    
    
    20.07
    %
    
    
    15.79
    %1/1/2005  12/31/2005
    
    
    4.57
    %
    
    
    3.32
    %
    
    
    2.43
    %
    
    
    9.49
    %
    
    
    4.91
    %1/1/2004  12/31/2004
    
    
    5.53
    %
    
    
    1.48
    %
    
    
    4.34
    %
    
    
    14.72
    %
    
    
    10.88
    %1/1/2003  12/31/2003
    
    
    9.60
    %
    
    
    1.23
    %
    
    
    4.11
    %
    
    
    33.11
    %
    
    
    28.68
    %4/1/2002  12/31/2002
    
    
    3.97
    %
    
    
    1.42
    %
    
    
    10.15
    %
    
    
    (20.16
    )%
    
    
    (22.31
    )%
 
 (1)
    
    Company returns shown are the net returns for Class A Series 1 for each of the
investment periods shown. See above for the Companys net returns for Class A Series
21-32, Class A Series 9-20, Class A Series 2-8, Class A Series 2-10 and Class A Series
2-9 for 2006, 2005, 2004, 2003 and 2002, respectively. Description of the Investment Funds and the Performance of the Investment Funds
  Goldman Sachs Global Equity Long/Short, LLC
  11




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##### 



Investment Period
    
    Net Return for Period1/1/2006  12/31/2006 (1)
    
    
    11.91
    %1/1/2005  12/31/2005 (1)
    
    
    9.93
    %1/1/2004  12/31/2004 (1)
    
    
    9.27
    %1/1/2003  12/31/2003 (1)
    
    
    13.73
    %1/1/2002  12/31/2002 (2)
    
    
    0.02
    %
 
 (1)
    
    Net return is based on the performance of Class C Series 1 units. Class C Series
1 units (no-fee-shares) of GELS (including those issued to the Company) are not
subject to management fees or incentive allocations paid or made to GS HFS as
managing member of GELS and therefore returns do not reflect the payment of any such
fees or the making of any allocations to GS HFS. In addition, returns for Class C
Series 1 units during the entire period reflect returns net of the compensation paid
to Advisors. The returns shown for 2003 and 2004 are also net of the payment of an
administration fee to GS HFS by GELS. The returns shown for 2005 and 2006 are net of
an administration fee paid by GELS to SEI who became the administrator of GELS on
January 1, 2005. No administration fee was paid to GS HFS by GELS in 2005 and 2006.(2)
    
    Annual net return is based on the performance of Class A Series 1 units
(for the period from January 1, 2002 to March 31, 2002) and Class C Series 1 (for the
period from the commencement of the Companys operations on April 1, 2002 to December
31, 2002). Class A Series 1 units of GELS are subject to a 1.25% management fee and
a 5% incentive allocation paid or made to GS HFS as managing member of GELS. The
returns shown, to the extent they reflect Class A Series 1 units, are net of the
management fee and the incentive allocation paid by GELS to GS HFS as managing member
of GELS. Class C Series 1 units (no-fee-shares) of GELS (including those issued to
the Company) are not subject to management fees or incentive allocations paid or made
to GS HFS as managing member of GELS and therefore the returns of Class C Series 1
units, do not reflect the payment of any such fees or the making of any allocations
to GS HFS. In addition, returns for Class A Series 1 units and Class C Series 1
units during the entire period reflect returns net of the compensation paid to
Advisors. The returns shown for Class C Series 1 units are also net of the payment
of an administration fee to GS HFS by GELS. Returns for the Class A Series 1 units
are shown for periods prior to the Companys commencement of operations on April 1,
2002 since GELS did not have no-fee-shares outstanding during such periods. Goldman Sachs Global Event Driven, LLC
  12




---



##### 



Risk Arbitrage/Special Situations
 i.e.
  Credit Opportunities/Distressed Securities
    Investment Period
    
    Net Return for Period1/1/2006  12/31/2006 (1)
    
    
    14.57
    %1/1/2005  12/31/2005 (1)
    
    
    7.65
    %1/1/2004  12/31/2004 (1)
    
    
    12.70
    %1/1/2003  12/31/2003 (1)
    
    
    18.09
    %4/1/2002  12/31/2002 (1)
    
    
    (0.66
    )%
 
 (1)
    
    Net return is based on the performance of Class C Series 1 units. Class C Series
1 units (no-fee-shares) of GED (including those issued to the Company) are not
subject to management fees or incentive allocations paid or made to GS HFS as
managing member of GED and therefore returns do not reflect the payment of any such
fees or the making of any allocations to GS HFS. In addition, returns for Class C
Series 1 units during the entire period reflect returns net of the compensation paid
to Advisors. The returns shown for 2002, 2003 and 2004 are also net of the payment of
an administration fee to GS HFS by GED. The returns shown for 2005 and 2006
are net of an administration fee paid by GED to SEI who became the administrator of
GED on January 1, 2005. No administration fee was paid to GS HFS by GED in 2005 and
2006. 13




---



##### 



Goldman Sachs Global Relative Value, LLC
  Credit Relative Value
  Convertible Arbitrage
  Equity Market Neutral
  Fixed Income Relative Value
  14




---



##### 



Investment Period
    
    Net Return for Period1/1/2006  12/31/2006 (1)
    
    
    5.89
    %1/1/2005
 12/31/2005 (1)
    
    
    4.09
    %1/1/2004  12/31/2004 (1)
    
    
    5.38
    %1/1/2003  12/31/2003 (1)
    
    
    7.11
    %1/1/2002  12/31/2002 (2)
    
    
    4.93
    %
 
 (1)
    
    Net return is based on the performance of Class C Series 1 units. Class C Series
1 units (no-fee-shares) of GRV (including those issued to the Company) are not
subject to management fees or incentive allocations paid or made to GS HFS as
managing member of GRV and therefore returns do not reflect the payment of any such
fees or the making of any allocations to GS HFS. In addition, returns for Class C
Series 1 units during the entire period reflect returns net of the compensation paid
to Advisors. The returns shown for 2003 and 2004 are also net of the payment of an
administration fee to GS HFS by GRV. The returns shown for 2005 and 2006 are net of
an administration fee paid by GRV to SEI who became the administrator of GRV on
January 1, 2005. No administration fee was paid to GS HFS by GRV in 2005 and 2006.(2)
    
    Annual net return is based on the performance of Class A Series 1 units
(for the period from January 1, 2002 to March 31, 2002) and Class C Series 1 (for the
period from the commencement of the Companys operations on April 1, 2002 to December
31, 2002). Class A Series 1 units of GRV are charged a 1.25% management fee and a 5%
incentive allocation by GS HFS as managing member of GRV. The returns shown, to the
extent they reflect Class A Series 1 units, are net of the management fee and the
incentive allocation paid by GRV to GS HFS as managing member of GRV. The Company
did not invest in Class A Series 1 units of GRV. Class C Series 1 units
(no-fee-shares) of GRV (including those issued to the Company) are not subject to
management fees or incentive allocations paid or made to GS HFS as managing member of
GRV and therefore returns, to the extent they reflect Class C Series 1 units, do not
reflect the payment of any such fees or the making of any allocations to GS HFS. In
addition, returns for Class A Series 1 units and Class C Series 1 units during the
entire period reflect returns net of the compensation paid to Advisors. The returns
shown are also net of the payment of an administration fee to GS HFS by GRV. Returns
for the Class A Series 1 Units are shown for periods prior to the Companys
commencement of operations on April 1, 2002 since GRV did not have no-fee-shares
outstanding during such periods. Goldman Sachs Global Tactical Trading, LLC
  15




---



##### 



Investment Period
    
    Net Return for Period1/1/2006  12/31/2006 (1)
    
    
    5.61
    %1/1/2005  12/31/2005 (1)
    
    
    4.03
    %1/1/2004  12/31/2004 (1)
    
    
    3.87
    %1/1/2003  12/31/2003 (1)
    
    
    11.61
    %1/1/2002  12/31/2002 (2)
    
    
    10.99
    %
 
 (1)
    
    Net return is based on the performance of Class C Series 1 units. Class C Series
1 units (no-fee-shares) of GTT (including those issued to the Company) are not
subject to management fees or incentive allocations paid or made to GS HFS as
managing member of GTT and therefore returns do not reflect the payment of any such
fees or the making of any allocations to GS HFS. In addition, returns for Class C
Series 1 units during the entire period reflect returns net of the compensation paid
to Advisors. The returns shown for 2003 and 2004 are also net of the payment of an
administration fee to GS HFS by GTT. The returns shown for 2005 and 2006 are net of
an administration fee paid by GTT to SEI who became the administrator of GTT on
January 1, 2005. No administration fee was paid to GS HFS by GTT in 2005 and 2006.(2)
    
    Annual net return is based on the performance of Class A Series 1 units
(for the period from January 1, 2002 to March 31, 2002) and Class C Series 1 (for the
period from the commencement of the Companys operations on April 1, 2002 to December
31, 2002). Class A Series 1 units of GTT are subject to a 1.25% management fee and a
5% incentive allocation paid or made to GS HFS as managing member of GTT. The
returns shown, to the extent they reflect Class A Series 1 units, are net of the
management fee and the incentive allocation paid by GTT to GS HFS as managing member
of GTT. The Company did not invest in Class A Series 1 units of GTT. Class C Series
1 units (no-fee-shares) of GTT (including those issued to the Company) are not
subject to management fees or incentive allocations paid or made to GS HFS as
managing member of GTT and therefore returns, to the extent they reflect Class C
Series 1 units, do not reflect the payment of any such fees or the making of any
allocations to GS HFS. In addition, returns for Class A Series 1 units and Class C
Series 1 units during the entire period reflect returns net of the compensation paid
to Advisors. The returns shown are also net of the payment of an administration fee
to GS HFS by GTT. Returns for the Class A Series 1 units are shown for periods prior
to the Companys commencement of operations on April 1, 2002 since GTT did not have
no-fee-shares outstanding during such periods. 16




---



##### 



Overview of the Investment Process of the Investment Funds
 i.e. i.e.
  i.e.
    PORTFOLIO COMPANIES. Direct Allocations to Advisors
 17




---



##### 



Direct Allocations to Advisors
 i.e. Overview of the Investment Process of the Investment Funds
 INVESTMENT
PROGRAMAllocation Among the Investment Funds.
 FEES AND
EXPENSES
 RISK FACTORS POTENTIAL CONFLICTS OF INTEREST.
 Certain Considerations Relating to Limited Capacity of Potential Advisors of Certain
Investment Funds
   18




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##### 



Hedging, Leverage and Other Strategies
 Hedging
  Leverage
  Additional Methods of Investing
such Advisor Funds by the Investment Funds RISK FACTORSInvestment Related RisksRisks Related to Investment and
TradingThe Use of Leverage May Substantially Increase the Adverse Impact to Which the Investment
Funds Investment Portfolios May be Subject
 19




---



##### 



. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONSLiquidity and Capital Resources
 Temporary and Defensive Strategies
  20




---



##### 



Potential Types of Advisor Investments
  Indirect Investments in Advisor Funds and with Advisors
  Investment in Exchange-Traded Advisor Funds
  Co-Investment Opportunities
   21




---



##### 



PORTFOLIO COMPANIES
 Economic Arrangements with Advisors
  POTENTIAL CONFLICTS OF INTERESTPotential
Conflicts Relating to the Allocation of Investment Opportunities Among the Company or Investment Funds
and Other Goldman Sachs Accounts
   POTENTIAL CONFLICTS OF INTEREST
 RISK FACTORS
 INTERNATIONAL ACTIVITIES
 i.e.
 RISK FACTORSInvestment
Related RisksRisks Related to International InvestmentsTrading on Foreign Exchanges May Involve
Higher Risk of Financial Irregularities and/or Lack of Appropriate Risk Monitoring and Controls Non-U.S. Investments Involve Special Risks not Usually Associated with Investments in U.S.
Securities Investment in Emerging Markets Involves Significant Risks, including Inflation and
Currency Devaluations Foreign Currency Transactions and Exchange Rate Risk Create Additional
Risks for Advisors Investing in Certain Financial Instruments Non-U.S. Futures Transactions
Afford Less Protection as Rules of a Foreign Exchange May Not be Enforced by a Domestic Regulator.
 22




---



##### 



PORTFOLIO COMPANIES
 POTENTIAL CONFLICTS OF INTEREST
  FEES AND EXPENSES
    FEES AND EXPENSES
 pro
rata
 23




---



##### 



pro rata pro rata FEES AND EXPENSES
  FEES AND EXPENSES
 Capital Accounts; Allocation of Gains and
Losses .
  24




---



##### 



Class ASeries 1Ratios to average
net assets (annualized):Expenses
    
    
    1.36
    %Incentive allocation
    
    
    0.46
    %Total expenses
and incentive allocation
    
    
    1.82
    %
  Fees and Expenses
    
    Percentage Amount
    
    Dollar AmountManagement Fee
    
    
    1.25
    %(1)
    
    $
    13,134
    (4)Incentive Allocation
    
    
    5
    %(2)
    
    $
    4,551
    (4)Administration Fee
    
    
    N/A
    (3)
    
    $
    1,053
    (4)Placement Fee
    
    None
    
    
    NoneEntry Fee
    
    None
    
    
    NoneExit Fee
    
    None
    
    
    NoneMinimum Subscription Amount
    
    
    N/A
    
    
    $
    1,000,000
    (5)
 
 (1)
    
    The Managing Member receives a monthly Management Fee, equal to one-twelfth of
1.25% of the net assets of the Company as of the end of the applicable month,
appropriately adjusted to reflect capital appreciation or depreciation and any
subscriptions, redemptions or distributions. See Capital Accounts; Allocation of
Gains and Losses below.(2)
    
    At the end of each fiscal year of the Company, the Managing Member is
entitled to receive an Incentive Allocation equal to 5% of the increase in the NAV
(as defined below in this section) of each series of Units. The Managing Member does
not receive a payment or make a contribution in the event of a decrease in the NAV of
a series of Units, however the Managing Member is only entitled to receive an
Incentive Allocation relating to an increase in NAV of a series of Units if the NAV
of such series is above a prior high NAV. See Capital Accounts; Allocation of
Gains and Losses below.(3)
    
    The Company bears a pro rata portion of the administration fee paid to the
administrator of the Investment Funds for services provided to the Investment Funds and Portfolio
Companies. In 2004, each of the Investment Funds paid its managing member an
administration fee of 0.20% for services rendered to it as administrator. The Dollar
Amount (which is approximate based on calculation) reflects the total administration
fee comprised of the Companys aggregate pro rata portion for services provided to
the Investment Funds and the fee directly payable by the Portfolio Companies based on
an investment of $1,000,000 in Class A Series 1 Units as of January 1, 2004.
Effective as of January 1, 2005, SEI (as defined below) became the administrator of
each Investment Fund and certain Portfolio Companies, and currently serves as the
administrator with respect to all of the Investment Funds and Portfolio Companies.
Throughout 2006, the administration fee rate (as discussed below)
ranged from 0.06% to 0.09%. (4)
    
    Based on an investment of $1,000,000 in Class A Series 1 Units as of
January 1, 2006.(5)
    
    The minimum subscription by a purchaser of Units is $1,000,000, although
the Managing Member, in its sole discretion, may accept subscriptions below the
minimum. 25




---



##### 



RISK FACTORS  Special Risks of the Companys Structure  Risks Related to The Companys Structure  The Companys Financial
Statements are, and in the Future Will Ultimately be, Based on Estimates of Valuations Provided by Third Party Advisors Which May not be Accurate or May Need to be Adjusted in the Future
 PERFORMANCE OF THE COMPANY  Direct Allocations to Advisors
    26




---



##### 



e.g INDEMNIFICATION OF DIRECTORS AND OFFICERS
 pro rata
  27




---



##### 



RISK FACTORSGeneral RisksRisks Related to the Units, Liquidity of
Units and the Offering of UnitsSpecial Considerations are Applicable to the Units; After the
Initial Offering of Units Subsequent Purchasers of Units May Suffer Losses Because of Previously
Established Open Positions
   POTENTIAL CONFLICTS OF INTEREST Goldman
Sachs or Intermediaries Financial and Other Interests and Relationships May
Incentivize Goldman Sachs or Intermediaries to Promote the Sale of Units and
Interests in the Investment Funds
 Capital Accounts; Allocation of Gains and Losses
 pro rata
 
 *
    
    An accounting period refers to the
following periods: the initial accounting period began upon the commencement
of operations of the Company. Each subsequent accounting period begins
immediately after the close of the preceding accounting period. Each
accounting period closes at the close of business on the first to occur of (i)
the last day of each calendar month, (ii) the last day of each fiscal year of
the Company, (iii) the date immediately prior to the effective date of the
admission of a new Member, (iv) the date immediately prior to the effective
date of an additional capital contribution by a Member, or (v) the date
immediately prior to the effective date of any redemption or complete
withdrawal by a Member. In addition, the final accounting period shall end on
the date the Company dissolves. 28




---



##### 



29




---



##### 



THE MANAGING MEMBER
       POTENTIAL CONFLICTS OF INTEREST
 POTENTIAL CONFLICTS OF INTEREST
 General Categories of Conflicts Associated with the Company and the Investment Funds
  30




---



##### 



Potential Conflicts Relating to the Selection of Advisors, the Sale of Units and the Allocation of
Investment Opportunities
 Goldman Sachs Other Activities May Have an Impact on the Selection of Advisors for
the Company
  3⁄4 General Categories of Conflicts Associated with the Company and the
Investment Funds Potential Conflicts Relating to the Allocation of Investment Opportunities Among
the Company or the Investment Funds and Other Goldman Sachs Accounts
 31




---



##### 



i.e.
 Goldman
Sachs or Intermediaries Financial and Other Interests and Relationships May Incentivize
Goldman Sachs or Intermediaries to Promote the Sale of Units and Interests in the Investment Funds
   32




---



##### 



33




---



##### 



Potential Conflicts Relating to the Allocation of Investment Opportunities Among the Company or the
Investment Funds and Other Goldman Sachs Accounts
   pro rata
  pro rata
 34




---



##### 



Other Potential Conflicts Relating to the Management of the Company and the Investment Funds by the
Managing Member
 Potential Restrictions and Issues Relating to Information Held by Goldman Sachs
   35




---



##### 



Potential Conflicts Relating to Goldman Sachs Proprietary Activities and Activities on Behalf of
Other Accounts
    36




---



##### 



37




---



##### 



Potential Conflicts in Connection with Investments in Goldman Sachs Money Market
Funds
  38




---



##### 



Goldman Sachs May In-Source Or Outsource
  Potential Conflicts Related to the Valuation of Investments Made by the Company and
the Investment Funds
  Potential Conflicts That May Arise When Goldman Sachs Acts in a Capacity Other than Managing Member
to the Company or the Investment Funds
    39




---



##### 



Potential Conflicts Relating to the Selection of Investments by the Advisors
 An Advisors Other Activities May Have an Impact on the Advisor Funds, Portfolio
Companies and Managed Accounts
  40




---



##### 



Potential Conflicts Relating to the Allocation of Investment Opportunities Among the
Advisors Accounts
  pro rata
  Other Potential Conflicts Relating to the Advisors Portfolio Management Activities
 Potential Restrictions and Issues Relating to Information Held by Advisors
   41




---



##### 



Potential Conflicts Relating to an Advisors Proprietary Activities on Behalf of
Other Accounts Managed by the Advisor
    42




---



##### 



43




---



##### 



Potential Conflicts That May Arise When an Advisor Acts in a Capacity Other Than
Advisor to the Advisor Funds, Portfolio Companies or Managed Accounts
     44




---



##### 



The Advisors May In-Source or Outsource
  Potential Conflicts in Connection with Brokerage Transactions and Proxy Voting by the Advisors
     45




---



##### 



Potential Restrictions on Advisor Activity
   Safeguards Implemented by the Managing Member to Address Conflicts of Interest
  46




---



##### 



Conflicts Resulting From Other Business Dealings of the Managing Member and its
Affiliates
   Conflicting Obligations to the Company and Other Advisory Accounts
   47




---



##### 



Personal Interests of Advisory Personnel
     Error
and Error Correction Policy
  Identification of Compensable Errors
   i.e.
  COMPETITION
  48




---



##### 



FISCAL YEAR
  EMPLOYEES
  SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
  
    
    investment strategies and allocations of assets;
    
    future performance; and
    
    trends in the four hedge fund sectors.
   RISK
FACTORS
   49




---



##### 



ITEM 1A.
 RISK FACTORS
 General Risks
  Risks Related to the Company and the Investment Funds Performance and Operation
 Past Performance of the Company is not Indicative of
Future Results
 Special Risks of the Companys StructureRisks Associated with the Company
Investing in Other EntitiesPast Performance of Affiliated Funds and of Advisors are not
Necessarily Indicative of the Results that the Company and any Investment Fund May Achieve or of
Future Results
 A Substantial Portion of an Investment Funds Assets May be Invested Utilizing Strategies That are
Not Within its Hedge Fund Sector; Most Advisors do not Provide Detailed Position Information
Regarding their Portfolios
 PERFORMANCE OF THE COMPANYDescription of the Investment Funds
and the Performance of the investment Funds
 e.g.
 50




---



##### 



There Can Be No Assurance that the Managing Members Decisions Regarding Risk Allocations will be
Successful; Inaccurate Information Provided by the Advisors May Have a Material Adverse Effect on
Implementing the Companys Investment Objective
 QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISKRISK MANAGEMENT
 Non-Diversified Status; the Managing Member may Allocate to One or More Advisors a Relatively Large
Percentage of an Investment Funds Assets
  51




---



##### 



Dependence on the Managing Member and the Advisors; the Managing Member Generally Has Limited
Access to Information on or Control over Advisors Portfolios and Members Assume the Risk that
Advisors May Knowingly Misrepresent Information Which Could Have a Material Negative Impact on the
Company
    52




---



##### 



The Company Does Not Currently Intend to Participate in New Issues Which May Limit Potential Gains
  Risks Related to the Companys Regulatory Environment
 Limited Regulatory Oversight; Members not Afforded Protection of Investment Company Act
    53




---



##### 



The Company Faces Legal, Tax and Regulatory Risks That May Adversely Affect the Company
  Risks Related to the Units, Liquidity of Units and the Offering of the Units
 Units Will Not be Listed and Will Not be Marketable
 The Company has Limited Liquidity and Limited Rights for Redemption
 The Company has Limited Liquidity and Limited Rights for Redemption
  54




---



##### 



Redemptions of Units are Subject to a Substantial Waiting Period and Potentially Outdated
Information
 force majeure
 Substantial Redemptions Could Have a Material Adverse Effect on the Company
 Special Risks of the Companys StructureRisks Related to the
Companys StructureThe Investment Funds and the Advisors Investments May not be Diversified and
there Can Be No Assurance that the Companys Allocation Models and Methodologies will Achieve the
Companys Allocation Goals MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONSLiquidity and Capital Resources
 55




---



##### 



Redemption May be in Cash or In-Kind Under the Sole Discretion of the Managing Member; Members May
Bear Risks Related to In-Kind Securities and Pay Fees in Disposing of In-Kind Securities
  Special Considerations are Applicable to the Units; After the Initial Offering of Units Subsequent
Purchasers of Units May Suffer Losses Because of Previously Established Open Positions
  i.e. pro rata
 56




---



##### 



Trading
Prior to Receipt of Subscription Monies and Prior to the Effective
Date of Subscriptions
   Special Risks of the Companys Structure
  Risks Related to the Companys Structure
 The Investment Funds and the Advisors Investments May not be Diversified and there Can Be No
Assurance that the Companys Allocation Models and Methodologies will Achieve the Companys
Allocation Goals
  57




---



##### 



The Companys Financial Statements are, and in the Future Will Ultimately be, Based on Estimates of
Valuations Provided by Third Party Advisors Which May not be Accurate or May Need to be Adjusted in
the Future
 General RisksRisks Related to the Company and the
Investment Funds Performance and OperationDependence on the Managing Member and the Advisors; the
Managing Member Generally Has Limited Access to Information on or Control over Advisors Portfolios
and Members Assume the Risk that Advisors May Knowingly Misrepresent Information Which Could Have a
Material Negative Impact on the Company Risks Associated with the Company Investing in
Other EntitiesValuation of the Investment Funds Investments Will be Based Upon Valuations
Provided by the Advisors Which are Generally not Audited; Uncertainties in Valuations Could Have a
Material Adverse Effect on the Companys Net Assets .
 58




---



##### 



BUSINESSMANAGING MEMBER
  The Other Business Activities and Relationships of Goldman Sachs and the Companys Advisors May
Create Conflicts of Interest
  59




---



##### 



POTENTIAL CONFLICTS OF INTEREST.
 Affiliates of Goldman Sachs and Members of the Company May Market and Trade Derivatives Linked to
the Performance of the Company, Which May Adversely Affect the NAV of the Company
   Special Risks of the Fund of Funds Structure
  Members of the Company are Subject to Multiple Levels of Fees and Expenses Because of the Companys
Structure and the Fee Structure of the Company May Create Incentives for Advisors to Make Risky
Investments
 FEES AND EXPENSES.
   60




---



##### 



The Company Could Indirectly Incur Duplicative Transaction Costs Without Accomplishing a Net
Investment Result
  Compensation Arrangements With the Managing Member and the Advisors of the Investment Funds May
Create Incentives for the Managing Member, the Investment Funds or the Advisors to Make Riskier
Investments or to Inflate Returns
 pro
rata
 Transactions Between and Among Funds May Be Undervalued and Negatively Affect the Companys
Performance
   61




---



##### 



Risks Associated with the Company Investing in Other Entities
 Past Performance of Affiliated Funds and of Advisors are not Necessarily Indicative of the Results
that the Company and Any Investment Fund May Achieve or of Future Results
 PERFORMANCE OF THE COMPANYCertain Considerations Relating
to Limited Capacity of Potential Advisors of Certain Investment Funds. e.g
 A Members Investment in the Company will be Affected by the Investment Policies and Decisions of
Advisors Which are Outside the Companys Control
 Investment Related Risks
 Limitations on Ability to Invest in Advisors May Result in Assets Not Being Used to Pursue
Investment Objectives
  62




---



##### 



Valuation of the Investment Funds Investments Will be Based Upon Valuations Provided by the
Advisors Which are Generally not Audited; Uncertainties in Valuations Could Have a Material Adverse
Effect on the Companys Net Assets
 General RisksRisks Related
to the Company and the Investment Funds Performance and OperationDependence on the Managing
Member and the Advisors; the Managing Member Generally Has Limited Access to Information on or
Control over Advisors Portfolios and Members Assume the Risk that Advisors May Knowingly
Misrepresent Information Which Could Have a Material Negative Impact on the Company Risks Related to the Companys StructureThe Companys Financial Statements
are, and in the Future Will Ultimately be, Based on Estimates of Valuations Provided by Third Party
Advisors Which May not be Accurate or May Need to be Adjusted in the Future
 Investment Fund Allocations to Advisor Funds are Difficult to Monitor and Control
  63




---



##### 



Trading in Investments May be Illiquid Which May Cause Substantial Losses and may Negatively Impact
the Ability to Make Distributions to a Withdrawing or Redeeming Member
   Advisor Redemption Holdbacks and Other Advisor Fund Liquidity Restrictions May Adversely Affect
Remaining Members
   Risks Related to the Companys StructureThe Companys Financial
Statements are, and in the Future Will Ultimately be, Based on Estimates of Valuations Provided by
Third Party Advisors Which May not be Accurate or May Need to be Adjusted in the Future
 64




---



##### 



Managed Account Allocations Expose the Investment Funds to Liability Exceeding Allocations
  An Investment Fund May Not be Able to Vote or May Limit its Voting Abilities
  Lack of Operating History of Certain Advisors; Past Performance of Advisors is not Indicative of
Future Results
  Advisors Invest Independently and May Hold Economically Offsetting Positions
  Advisors May Have Limited Capacity to Manage Additional Investment Fund Investments, Which Could
Cause Dilution or Concentration of the Companys Investments or Negatively Affect Allocation of
Investments
 PERFORMANCE OF THE COMPANYCertain Considerations Relating to Limited Capacity of Potential
Advisors of Certain Investment Funds.
 65




---



##### 



PERFORMANCE OF THE COMPANYCertain Considerations Relating to Limited Capacity of Potential
Advisors of Certain Investment Funds.
  Advisor Funds Securities are Generally Illiquid Which May Increase Costs and Limit Redemptions
  66




---



##### 



Frequent Trading and Turnover Typically Result in High Transaction Costs and the Investment Funds
Have No Control Over This Turnover
  Indemnification of Advisors May Create Costs for the Company and the Investment Funds
  Allocation of the Companys Assets May Not Protect the Company from Exposure to Economic Downturns
in Any Investment Fund or Hedge Fund Sector
  Investment Related Risks
  67




---



##### 



Risks Related to Investment and Trading
 An Investment in the Company Involves a High Degree of Risk That the Entire Amount Invested May be
Lost; Investment Results May Vary Substantially over Time
 BUSINESSINVESTMENT PROGRAM
  The Advisors May be Unable to or May Choose not to Seek to Achieve their Investment Goals; Advisors
May Not be Able to Locate Suitable Investment Opportunities
   The Use of Leverage May Substantially Increase the Adverse Impact to Which the Investment Funds
Investment Portfolios May be Subject
 PERFORMANCE OF THE COMPANYHedging, Leverage and Other
Strategies
 68




---



##### 



Convergence Risk May Result in Significant Losses of the Investment Funds and the Company
  Possible Effects of Speculative Position Limits Could Adversely Affect the Operations and
Profitability of the Investment Funds and the Company
   69




---



##### 



Short Selling Creates the Risk of Significant Losses
  The Ability of an Investment Fund to Hedge Successfully will Depend on the Particular Advisors
Ability to Predict Pertinent Market Movements Which Cannot be Assured
  Forward Contracts May Entail Significant Risks and Uncertainties Which Could Result in Substantial
Losses to the Investment Funds and the Company
 i.e.
 70




---



##### 



Swap Agreements May Increase or Decrease the Overall Volatility of an Investment Funds Portfolio
  i.e.
 71




---



##### 



The Prices of an Investment Funds Investments Can be Highly Volatile and Influenced by External
Factors Outside the Control of Such Investment Fund
  Failure of the Investment Funds Counterparties, Brokers, and Exchanges Exposes Investment Funds to
Credit Risks in Various Forms
 pro rata
 72




---



##### 



Risks Related to International Investments
 Trading on Non-U.S. Exchanges May Involve Higher Risk of Financial Irregularities and/or Lack of
Appropriate Risk Monitoring and Controls
  Non-U.S. Investments Involve Special Risks not Usually Associated with Investments in U.S.
Securities
  73




---



##### 



Investment in Emerging Markets Involves Significant Risks, including Inflation and Currency
Devaluations
  74




---



##### 



Foreign Currency Transactions and Exchange Rate Risk Create Additional Risks for Advisors Investing
in Certain Financial Instruments
  Non-U.S. Futures Transactions Afford Less Protection as Rules of a Non-U.S. Exchange May Not be
Enforced by a U.S. Regulator
  Risks Related to Securities and Other Instruments
 Investing in Derivative Instruments Involves Risk of Loss to the Advisors That Could Materially
Adversely Affect the Value of the Companys Net Assets
   75




---



##### 



Equity Securities and Equity-Related Instruments May be Subject to Various Types of Risk, Including
Market Risk, Liquidity Risk, Counterparty Credit Risk, Legal Risk and Operations Risk
  Fixed Income Securities are Subject to Credit Risk and Price Volatility
  i.e. i.e. i.e. i.e.
 76




---



##### 



High Yield Debt Investments are Subject to Significant Risks of Default, Illiquidity and Volatility
   Structured Securities May Present a Greater Degree of Market Risk and May be More Volatile, Less
Liquid and More Difficult to Price Accurately Than Less Complex Securities
  Call Options Involve Significant Risks for Buyers and Sellers
 e.g.
  Put Options Involves Significant Risks for Buyers and Sellers
 e.g.
 77




---



##### 



Reverse Repurchase Agreements May Increase the Volatility of an Investment Funds and the Companys
Investment Portfolio
  There are Significant Risks Associated with When-Issued and Forward Commitment Securities
  Derivatives with Respect to High Yield and Other Indebtedness Expose Advisors to Counterparty and
Issuer Risk
  78




---



##### 



The Company May be Prevented From Achieving its Objective During any Period in Which Assets are not
Substantially Invested in Accordance with Principal Investment Strategies
  Restricted and Illiquid Investments May Prevent Prompt Liquidation of Unfavorable Positions
Resulting in Substantial Loss
    Risks Related to Issuers of Securities
 The Issuers of Securities Acquired by Advisors will Sometimes Face a High Degree of Business and
Financial Risk
   79




---



##### 



Expected Transactions May not Take Place or may Result in Substantial Losses
  Investments in Small Capitalization Companies are Speculative and May be Difficult to Value
  Investments in Issuers of Indebtedness May be Adversely Affected in the Event of an Issuers
Insolvency
  80




---



##### 



Purchases of Securities and Other Obligations of Financially Distressed Companies Create an
Enhanced Risk of Substantial Loss or Loss of Entire Investment
  Investments in Certain Multi-Advisor Structures
 PERFORMANCE OF THE
COMPANYOverview of the Investment Process of the Investment Funds, Special Risks of the Companys Structure
 81




---



##### 



Additional Investment Risks of Certain Advisor Funds
      82




---



##### 



Limits of Risk Disclosure
 The Company Should be considered a Speculative Investment and Members Should Retain Their
Investment Only if They Can Sustain a Complete Loss of their Investment
    
 ITEM 1B. UNRESOLVED STAFF COMMENTS
  
 ITEM 2. PROPERTIES
  
 ITEM 3. LEGAL PROCEEDINGS
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  83




---



##### 



PART II
 
 ITEM 5.
    
    MARKET FOR THE REGISTRANTS COMMON EQUITY; RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
 Market Information
     Quarter Ended
    
    High
    
    Low3/31/05
    
    $
    120.77
    
    
    $
    119.536/30/05
    
    $
    120.08
    
    
    $
    118.229/30/05
    
    $
    124.44
    
    
    $
    121.7712/31/05
    
    $
    125.75
    
    
    $
    122.353/31/06
    
    $
    132.04
    
    
    $
    129.336/30/06
    
    $
    133.99
    
    
    $
    130.889/30/06
    
    $
    131.74
    
    
    $
    130.7612/31/06
    
    $
    137.10
    
    
    $
    132.83
  Record Holders of Units of the Company
  84




---



##### 



Distributions
  Recent Sales of Unregistered Units and Use of Proceeds
  Purchases of Units by the Company and Affiliated Purchasers
  EXHIBITS
AND FINANCIAL STATEMENT SCHEDULES.
 Performance Graph
   
 85




---



##### 




    
    The performance of the Company is based on net returns for Class A Series
1 Units. The performance of the Units shown in the graph is not necessarily
indicative of future performance.
    
    General: References to market or composite indices, benchmarks or other
measures of relative market performance over a specified period of time (for purposes
of this section, each an index) are provided for your information only. Reference
to an index does not imply that the portfolio will achieve returns, volatility or
other results similar to the index. The composition of an index may not reflect the manner in which a portfolio is constructed in relation
to expected or achieved returns, portfolio guidelines, restrictions, sectors,
correlations, concentrations, volatility or tracking error targets, all of which are
subject to change over time.
    
    MSCI World Index: The Morgan Stanley Capital International World
Equities Index is a price index of the total return with dividends reinvested monthly
net of dividend withholding tax of a representative group of listed companies for
each region, with each component market weighted on the basis of market
capitalization relative to the total market capitalization of the market being
measured and adjusted for changes in capital within the component firms.
    
    S&P 500 Index: The Standard & Poors S&P 500 Index is an index based on
the prices of the securities of 500 different companies. Total returns are calculated
by adding the dividend income and price appreciation for a given time period.
    
    Lehman Brothers Aggregate Index: The Lehman Brothers Aggregate Index
represents securities that are U.S. domestic, taxable, and dollar denominated. The
index covers the U.S. investment grade fixed rate bond market, with index components
for government and corporate securities, mortgage pass-through securities, and
asset-backed securities. These major sectors are subdivided into more specific
indices that are calculated and reported on a regular basis.
    
    Index Sources: Bloomberg.
 
 ITEM 6. SELECTED FINANCIAL DATA
  Commencement ofOperations(April 1, 2002)Year Ended December 31,
    
    to December 31,Operations Data
    
    2006
    
    2005
    
    2004
    
    2003
    
    2002Net trading
profit/(loss)
    
    $
    76,020,409
    
    
    $
    66,816,581
    
    
    $
    72,018,387
    
    
    $
    81,854,395
    
    
    $
    11,821,474Total expenses
    
    $
    9,926,911
    
    
    $
    14,836,748
    
    
    $
    14,457,852
    
    
    $
    10,733,672
    
    
    $
    2,459,020Net income/(loss)
    
    $
    66,569,645
    
    
    $
    52,141,634
    
    
    $
    58,055,729
    
    
    $
    71,218,666
    
    
    $
    9,395,178Less: Incentive
allocation to the
managing member
    
    $
    3,328,482
    
    
    $
    2,615,216
    
    
    $
    2,902,854
    
    
    $
    3,560,865
    
    
    $
    469,759Net income/(loss)
available for
pro-rata allocation
to members
    
    $
    63,241,163
    
    
    $
    49,526,418
    
    
    $
    55,152,875
    
    
    $
    67,657,801
    
    
    $
    8,925,419
 86




---



##### 



As of December 31,Financial Condition Data
    
    2006
    
    2005
    
    2004
    
    2003
    
    2002Investments
    
    $
    686,250,341
    
    
    $
    1,124,329,933
    
    
    $
    1,092,953,352
    
    
    $
    970,912,828
    
    
    $
    383,584,606Total assets
    
    $
    687,475,191
    
    
    $
    1,125,036,745
    
    
    $
    1,093,172,149
    
    
    $
    1,019,413,929
    
    
    $
    384,184,813Total liabilities
    
    $
    25,400,717
    
    
    $
    350,437,862
    
    
    $
    135,716,916
    
    
    $
    86,168,187
    
    
    $
    958,552Members equity
    
    $
    662,074,474
    (1)
    
    $
    774,598,883
    (2)
    
    $
    957,455,233
    (3)
    
    $
    933,245,742
    (4)
    
    $
    383,226,261Ending NAV/Unit:Class A Series
1
    
    $
    137.10
    
    
    $
    125.75
    
    
    $
    120.25
    
    
    $
    113.95
    
    
    $
    103.97
 
 (1)
    
    The reduction in members equity as of December 31, 2006 reflects Redemptions payable in
the amount of $23,701,199 that was payable at December 31, 2006.(2)
    
    The reduction in members equity as of December 31, 2005 reflects Redemptions payable in the
amount of $347,523,596 that was payable at December 31, 2005.(3)
    
    The reduction in members equity as of December 31, 2004 reflects Redemptions payable in the
amount of $128,546,636 that was payable at December 31, 2004.(4)
    
    The reduction in members equity as of December 31, 2003 reflects Redemptions payable in the
amount of $34,529,625 that was payable at December 31, 2003. 
 ITEM 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 Managements Discussion and Analysis of Financial Condition and Results of Operations
 Overview
 SELECTED FINANCIAL DATA RISK FACTORSSpecial Risks of the Companys
StructureRisks Related to the Companys StructureThe Companys Financial Statements Are, and in
the Future Will Ultimately be, Based on Estimates of Valuations Provided by Third Party Advisors
Which May not be Accurate or May Need to be Adjusted in the Future
    87




---



##### 



Results of Operations
  2006 Performance
  Overview
 QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISKRisk Management
 88




---



##### 



Portfolio Weight
    
    Portfolio Weight as
    
    Year Endedas a % of
    
    a % of Adjusted
    
    December 31, 2006Investment Fund
    
    Members Equity(1)
    
    Members Equity(2)
    
    Net Return(3)GELS
    
    
    36.81
    %
    
    
    35.54
    %
    
    
    11.91
    %GED
    
    
    36.36
    %
    
    
    35.10
    %
    
    
    14.57
    %GRV
    
    
    14.87
    %
    
    
    14.36
    %
    
    
    5.89
    %GTT
    
    
    15.61
    %
    
    
    15.07
    %
    
    
    5.61
    %
 
 (1)
    
    Members equity, used
in the calculation of the investments as a percentage of members
equity, is reduced for member redemptions that are paid after the balance sheet date.(2)
    
    As a percentage of the Companys adjusted members equity which represents members
equity excluding Redemptions payable in the amount of $23,701,199 that was payable at
December 31, 2006.(3)
    
    These returns are based on the performance of Class C Series 1 units. The
returns include administration fees. No management fee or incentive allocation was
charged by the managing member of the Investment Funds with respect to the Companys
investment in any of the Investment Funds. Past performance is not indicative of
future results, which may vary.  The Investment Funds
  Goldman Sachs Global Equity Long/Short, LLC
      89




---



##### 



Goldman Sachs Global Event Driven, LLC
        Goldman Sachs Global Relative Value, LLC
     90




---



##### 



Goldman Sachs Global Tactical Trading, LLC
     91




---



##### 



2005 Performance
  Overview
  92




---



##### 



Portfolio Weight
    
    Portfolio Weight as
    
    Year Endedas a % of
    
    a % of Adjusted
    
    December 31, 2005Investment Fund
    
    Members Equity(1)
    
    Members Equity(2)
    
    Net Return(3)GELS
    
    
    37.97
    %
    
    
    26.21
    %
    
    
    9.93
    %GED
    
    
    38.91
    %
    
    
    26.86
    %
    
    
    7.65
    %GRV
    
    
    41.02
    %
    
    
    28.32
    %
    
    
    4.09
    %GTT
    
    
    27.25
    %
    
    
    18.81
    %
    
    
    4.03
    %
 
 (1)
    
    Members equity, used in the calculation of the investments as a percentage of members
equity, is reduced for member redemptions that are paid after the balance sheet date.(2)
    
    As a percentage of the Companys adjusted members equity which represents members
equity excluding Redemptions payable in the amount of $347,523,596 that was payable
at December 31, 2005.(3)
    
    These returns are based on the performance of Class C Series 1 units. The
returns include administration fees. No management fee or incentive allocation was
charged by the managing member of the Investment Funds with respect to the Companys
investment in any of the Investment Funds. Past performance is not indicative of
future results, which may vary.  The Investment Funds
  Goldman Sachs Global Equity Long/Short, LLC
    e.g
 93




---



##### 



Goldman Sachs Global Event Driven, LLC
       Goldman Sachs Global Relative Value, LLC
  94




---



##### 



Goldman Sachs Global Tactical Trading, LLC
  95




---



##### 



2004 Performance
  96




---



##### 



Overview
  Portfolio Weight
    
    Portfolio Weight as
    
    Year Endedas a % of
    
    a % of Adjusted
    
    December 31, 2004Investment Fund
    
    Members Equity(1)
    
    Members Equity(2)
    
    Net Return(3)GELS
    
    
    23.63
    %
    
    
    20.84
    %
    
    
    9.27
    %GED
    
    
    28.01
    %
    
    
    24.69
    %
    
    
    12.70
    %GRV
    
    
    36.60
    %
    
    
    32.27
    %
    
    
    5.38
    %GTT
    
    
    25.91
    %
    
    
    22.84
    %
    
    
    3.87
    %
 
 (1)
    
    Members equity, used in the calculation of the investments as a percentage of members
equity, is reduced for member redemptions that are paid after the balance sheet date.(2)
    
    As a percentage of the Companys adjusted members equity which represents members
equity excluding Redemptions payable in the amount of $128,546,636 that was payable
at December 31, 2004.(3)
    
    These returns are based on the performance of Class C Series 1 units. The
returns include administration fees. No management fee or incentive allocation was
charged by the managing member of the Investment Funds with respect to the Companys
investment in any of the Investment Funds. Past performance is not indicative of
future results, which may vary.  The Investment Funds
  Goldman Sachs Global Equity Long/Short, LLC
     97




---



##### 



Goldman Sachs Global Event Driven, LLC
       Goldman Sachs Global Relative Value, LLC
  98




---



##### 



Goldman Sachs Global Tactical Trading, LLC
   99




---



##### 



Comparison of Select Financial Information from 2006, 2005, and 2004
 Interest Income
  Expenses
  100




---



##### 



Incentive Allocation
   BUSINESS FEES AND EXPENSES
 Liquidity and Capital Resources
  101




---



##### 



force majeure
    102




---



##### 



103




---



##### 



Recent Accounting Pronouncements
 FASB Interpretation No. 48
 Accounting for Uncertainty in Income Taxes
 104




---



##### 



Statement of Financial Accounting Standards No. 157
 Fair Value Measurements
 Critical Accounting Policies and Estimates
  BUSINESSCERTAIN RISK FACTORSGeneral
RisksRisks Related to the Company and the Investment Funds Performance and OperationDependence
on the Managing Member and the Advisors; the Managing Member Generally Has Limited Access to
Information on or Control over Advisors Portfolios and Members Assume the Risk that Advisors May
Knowingly Misrepresent Information Which Could Have a Material Negative Impact on the Company Special Risks of the Companys StructureRisks Related to the Companys StructureThe Companys
Financial Statements are, and in the Future will be, Based on Estimates of Valuations Provided by
Third Party Advisors Which May not be Accurate or May Need to be Adjusted in the Future Special Risks of the Companys StructureRisks Associated with the Company Investing in Other
EntitiesValuation of the Investment Funds Investments Will be Based upon Valuations Provided by
the Advisors Which are Generally not Audited; Uncertainties in Valuations Could Have a Material
Adverse Effect on the Companys Net Assets
 105




---



##### 



Off Balance Sheet Risk
  Contractual Obligations
  
 ITEM 7A.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Quantitative and Qualitative Disclosures About Market Risk
  106




---



##### 



Year EndedDecember 31, 2006% of Adjusted
    
    Fair Value/Value
    
    Net Trading ProfitInvestment Fund
    
    % of Members Equity
    
    Members Equity (6)
    

at Risk
    
    (in millions)
    
    LiquidityGELS
    
    
    36.81
    %
    
    
    35.54
    %
    
    $
    243,737,514
    
    
    $
    27.6
    
    
    (1)GED
    
    
    36.36
    %
    
    
    35.10
    %
    
    $
    240,699,867
    
    
    $
    33.9
    
    
    (2)GRV
    
    
    14.87
    %
    
    
    14.36
    %
    
    $
    98,479,997
    
    
    $
    8.7
    
    
    (3)GTT
    
    
    15.61
    %
    
    
    15.07
    %
    
    $
    103,332,963
    
    
    $
    5.8
    
    
    (4)Total
    
    
    103.65
    %(5)
    
    
    100.07
    %(5)
    
    $
    686,250,341
    
    
    $
    76.0Year EndedDecember 31, 2005% of Adjusted
    
    Fair Value/Value
    
    Net Trading ProfitInvestment Fund
    
    % of Members Equity
    
    Members Equity (6)
    

at Risk
    
    (in millions)
    
    LiquidityGELS
    
    
    37.97
    %
    
    
    26.21
    %
    
    $
    294,096,911
    
    
    $
    25.7
    
    

    (1)GED
    
    
    38.91
    %
    
    
    26.86
    %
    
    $
    301,443,254
    
    
    $
    20.9
    
    
    (2)GRV
    
    
    41.02
    %
    
    
    28.32
    %
    
    $
    317,728,892
    
    
    $
    12.3
    
    
    (3)GTT
    
    
    27.25
    %
    
    
    18.81
    %
    
    $
    211,060,876
    
    
    $
    7.9
    
    
    (4)Total
    
    
    145.15
    %(5)
    
    
    100.20
    %(5)
    
    $
    1,124,329,933
    
    
    $
    66.8
 
 (1)
    
    Redemptions can be made quarterly with 45 days notice, or at the sole discretion
of the Managing Member.(2)
    
    Effective January 1, 2006, redemptions can be made quarterly with 91 days
notice, or at the sole discretion of the Managing Member. Prior to January 1, 2006,
redemptions could be made semi-annually with 45 days notice, or at the sole discretion
of the Managing Member.(3)
    
    Effective January 1, 2006, redemptions can be made quarterly with 91 days
notice, or at the sole discretion of the Managing Member. Prior to January 1, 2006,
redemptions could be made quarterly with 45 days notice, or at the sole discretion of
the Managing Member.(4)
    
    Effective January 1, 2006, redemptions can be made quarterly with 60 days notice
(prior to the valuation date), or at the sole discretion of the Managing Member. Prior
to January 1, 2006, redemptions could be made semi-annually with 60 days notice, (prior
to the redemption date), or at the sole discretion of the Managing Member.(5)
    
    The total value of the Companys investments in the Investment Funds exceeded
100% of members equity and adjusted members equity, respectively, because members
equity and adjusted members equity reflected certain accrued liabilities of the
Company, including fees and expenses, and members equity also reflected redemptions
payable after the balance sheet date.(6)
    
    Adjusted members equity, used in the calculation of the investments as a
percentage of adjusted members equity, represents members equity excluding Redemptions
payable in the amount of $23,701,199 that was payable at December 31, 2006 and
$347,523,596 that was payable at December 31, 2005. 107




---



##### 



Risk Management
  RISK FACTORSGeneral RisksRisks Related to the Company and the Investment Funds Performance and
OperationA Substantial Portion of an Investment Funds Assets May be Invested Utilizing Strategies
That are not Within its Hedge Fund Sector; Most Advisors do not Provide Detailed Position
Information Regarding their Portfolios and Dependence on the Managing Member and the Advisors;
the Managing Member Generally Has Limited Access to Information on or Control over Advisors
Portfolios and Members Assume the Risk that Advisors May Knowingly Misrepresent Information Which
Could Have a Material Negative Impact on the Company
 RISK FACTORSGeneral RisksRisks Related to the Company and the
Investment Funds Performance and OperationA Substantial Portion of an Investment Funds Assets
May be Invested Utilizing Strategies That are not Within its Hedge Fund Sector; Most Advisors do
not Provide Detailed Position Information Regarding their Portfolios and Dependence on the
Managing Member and the Advisors; the Managing Member Generally Has Limited Access to Information
on or Control over Advisors Portfolios and Members Assume the Risk that Advisors May Knowingly
Misrepresent Information Which Could Have a Material Negative Impact on the Company
  108




---



##### 



BUSINESSINVESTMENT PROGRAMAllocation Among the Investment Funds.
    
 ITEM 8.
    
    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
   109




---



##### 



Fiscal Quarter EndedMar. 31,
    
    June 30,
    
    Sep. 30,
    
    Dec. 31,2005
    
    2005
    
    2005
    
    2005Net Trading Profit/(Loss)
    
    $
    2,165,716
    
    
    $
    4,068,802
    
    
    $
    44,098,205
    
    
    $
    16,483,858Total Expenses
    
    $
    3,281,121
    
    
    $
    3,596,025
    
    
    $
    3,693,226
    
    
    $
    4,266,376Net Income/(Loss)
    
    ($
    1,096,814
    )
    
    $
    559,164
    
    
    $
    40,446,627
    
    
    $
    12,232,657Net Income/(Loss) Available
for pro rata allocation
to Members
    
    ($
    1,109,981
    )
    
    $
    518,802
    
    
    $
    38,496,572
    
    
    $
    11,621,025Mar. 31,
    
    June 30,
    
    Sep. 30,
    
    Dec. 31,2006
    
    2006
    
    2006
    
    2006Net Trading Profit/(Loss)
    
    $
    43,835,232
    
    
    ($
    4,725,910
    )
    
    $
    1,952,682
    
    
    $
    34,958,405Total Expenses
    
    $
    2,806,142
    
    
    $
    2,440,102
    
    
    $
    2,207,817
    
    
    $
    2,472,850Net Income/(Loss)
    
    $
    41,240,462
    
    
    ($
    7,044,975
    )
    
    ($
    173,192
    )
    
    $
    32,547,350Net Income/(Loss) Available
for pro rata allocation
to Members
    
    $
    39,178,439
    
    
    ($
    6,696,764
    )
    
    ($
    165,319
    )
    
    $
    30,924,807
 
 ITEM 9.
    
    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
  
 ITEM 9A.
    
    CONTROLS AND PROCEDURES
  
 ITEM 9B.
    
    OTHER INFORMATION
 PART III
 
 ITEM 10.
    
    DIRECTORS, EXECUTIVE OFFICERS OF THE MANAGING MEMBER AND REGISTRANT AND CORPORATE
GOVERNANCE
 BUSINESSTHE MANAGING MEMBER.
 110




---



##### 



NAME
    
    AGE
    
    POSITION(S)Tobin V. Levy
    
    
    63
    
    
    Director*Kent A. Clark
    
    
    42
    
    
    Director, Managing Director and Chief
Investment Officer**Hugh J. Lawson
    
    
    38
    
    
    Director, Managing Director and Global Head of
Product ManagementJennifer Barbetta
    
    
    34
    
    
    Director, Managing Director and
Chief Financial Officer*Omar Asali
    
    
    36
    
    
    Managing Director and Head of GEDPeter Ort
    
    
    36
    
    
    Managing Director and Head of GELSThomas Dobler
    
    
    41
    
    
    Vice President and Head of GTTMelanie Owen
    
    
    29
    
    
    Vice President and Head of GRV
 
 *
    
    On March 30, 2007, Tobin
V. Levy notified the Company that effective April 1, 2007, he will
no longer serve on the Board of Directors of the Managing Member for
the Company. Mr. Levy will remain a Managing Director of the Managing
Member and will continue to support the Managing Member in a variety
of capacities.
Jennifer Barbetta has been elected as a new
member of the Board of Directors of the Managing Member as of this
date.**
    
    Performing the responsibilities of principal executive officer effective August 7,
2006  Tobin
V. Levy
 Kent A. Clark
 Hugh J. Lawson
 Jennifer
Barbetta
 111




---



##### 



Omar
Asali
 Peter
Ort
 Thomas Dobler
 Melanie Owen
 Compliance with Section 16(a) of the Securities Exchange Act of 1934
  Code of Ethics
  112




---



##### 



Corporate Governance
 Nominating Committee and Compensation Committee
  Audit Committee and Audit Committee Financial Expert
   
    
    reviewed and discussed the financial statements with management of
the Managing Member responsible for the management and operations of the
Company;
    
    discussed with the independent auditors the matters required to be
discussed by the statement of Auditing Standards No. 61, as amended, as adopted
by the Public Company Accounting Oversight Board in Rule 3200T;
    
    received the written disclosures and the letters from the
independent accountants required by Independence Standards Board
Standard No.
1, as adopted by the Public Company Accounting Oversight Board in Rule 3600T,
and has discussed with the independent accountant, the independent accountants
independence; and based on the review and discussions referred to above, the Board
of Directors of the Managing Member recommended that the audited financial
statement be included in the Companys Annual Report for filing with the SEC.
 113




---



##### 



Board meetings and Committees; Annual Meeting Attendance; Shareholder Communications
    
 ITEM 11.
    
    EXECUTIVE COMPENSATION
  BUSINESS FEES AND EXPENSES.
 Fee
Type
    
    Fee AmountManagement Fee paid or payable by the Company
    
    $
    9,131,947Incentive Allocation paid or payable by the Company
    
    $
    3,328,482Placement Fee paid or payable by the Company to Goldman Sachs
    
    $
    
 114




---



##### 



ITEM 12.
    
    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
 Security Ownership of Certain Beneficial Owners
  Security Ownership of Management
    Percentage of All InvestorsNumber of Units
    
    Name of Beneficial Owner
    
    Interests0
    
    Tobin V. Levy
    
    0
    
    Kent A. Clark
    
    0
    
    Hugh J. Lawson
    
    0
    
    Jennifer Barbetta
    
    0
    
    Thomas Dobler
    
    0
    
    Peter Ort
    
    0
    
    Omar Asali
    
    0
    
    Melanie Owen
    
    0
    
    Directors and executive officers as a group
    
    
 Changes in Control
  
 ITEM 13.
    
    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
 BUSINESSPOTENTIAL CONFLICTS OF INTEREST
 BUSINESSPOTENTIAL CONFLICTS OF
INTEREST
 BUSINESSPOTENTIAL CONFLICTS OF INTEREST.
 115




---



##### 



BUSINESSINVESTMENT PROGRAMInvestment Objective and Approach
 BUSINESSFEES AND
EXPENSES
     Director Independence
  Brokerage
   116




---



##### 



Placement Agent
  117




---



##### 



ITEM 14.
    
    PRINCIPAL ACCOUNTANT FEES AND SERVICES
  Year Ended December 31,2006
    
    2005Audit Fees
    
    $
    134,000
    
    
    $
    120,000Audit-Related Fees (1)
    
    $
    
    
    
    $
    280,000Tax Fees (2)
    
    $
    40,500
    
    
    $
    50,000All Other Fees
    
    $
    
    
    
    $
    Total
    
    $
    174,500
    
    
    $
    450,000
 
 (1)
    
    Audit-related fees for the year ended December 2005 are for Sarbanes Oxley 404 consultation,
documentation and testing.(2)
    
    Tax services primarily involve assistance with the preparation of tax returns and
K-1s.  118




---



##### 



PART IV
 
 ITEM 15.
    
    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 (a)
    
    Documents Filed as Part of this Annual Report:
 1.
    
    Financial Statements.
 PageDescription of Financial Statements
    
    
    NumberGoldman Sachs Hedge Fund Partners, LLC Financial StatementsReport of
Ernst & Young LLP, Independent Registered Public Accounting Firm
    
    
    F-2Schedule of
Investments as of December 31, 2006 and 2005
    
    
    F-3Balance Sheet as of December 31, 2006 and 2005
    
    
    F-5Statement of Operations for the years ended December 31, 2006, 2005 and 2004
    
    
    F-6Statement of
Changes in Members Equity for the years ended December 31, 2006, 2005 and 2004
    
    
    F-7Statement of Cash Flows for the years ended December 31, 2006, 2005 and 2004
    
    
    F-8Notes to Financial Statements
    
    
    F-9
 2.
    
    Financial Statement Schedules.Certain schedules are omitted because they are not applicable or the required
information is shown in the financial statements or notes thereto.3.
    
    List of Exhibits.See Index of Exhibits included on page E-1.
 119




---



##### 



SIGNATURES
  GOLDMAN SACHS HEDGE FUND PARTNERS, LLC(Registrant)By: Goldman Sachs Hedge Fund Strategies LLCManaging MemberBy:
    
    /s/ Jennifer BarbettaName: Jennifer Barbetta

Title: Managing Director and Chief Financial Officer
  120




---



##### 



INDEX OF EXHIBITS
 Exhibit No.
    
    Description3*
    
    Copy of Amended and Restated Limited Liability Company
Agreement of Goldman Sachs Hedge Fund Partners, LLC dated
January 1, 2006 (Note: the LLC Agreement also defines the
rights of the holders of Units of the Company) (filed as
Exhibit 3 to the Form 8-K, filed January 6, 2006, and
incorporated herein by reference).10.1*
    
    Copy of Amended and Restated Limited Liability Company
Agreement of Goldman Sachs Global Tactical Trading, LLC, dated
as of January 1, 2006 (filed as Exhibit 10.1 to the Form 8-K,
filed January 6, 2006, and incorporated herein by reference).10.2*
    
    Copy of Amended and Restated Limited Liability Company
Agreement of Goldman Sachs Global Equity Long/Short, LLC,
dated as of January 1, 2006 (filed as Exhibit 10.2 to the 8-K,
filed January 6, 2006, and incorporated herein by reference).10.3*
    
    Copy of Amended and Restated Limited Liability Company
Agreement of Goldman Sachs Global Relative Value, LLC, dated
as of January 1, 2006 (filed as Exhibit 10.3 to the Form 8-K,
filed January 6, 2006, and incorporated herein by reference).10.4*
    
    Copy of Amended and Restated Limited Liability Company
Agreement of Goldman Sachs Global Event Driven, LLC, dated as
of January 1, 2006 (filed as Exhibit 10.4 to the Form 8-K,
filed January 6, 2006, and incorporated herein by reference).10.5*
    
    Distribution Agreement between Goldman Sachs Hedge Fund
Partners, LLC and Goldman, Sachs & Co. dated March 1, 2002
(filed as Exhibit 10.5 to the Form 10, filed April 29, 2004,
and incorporated herein by reference).10.6*
    
    Administration Agreement between Goldman Sachs Hedge Fund
Partners, LLC and Goldman Sachs Hedge Fund Strategies LLC
(formerly Goldman Sachs Princeton LLC) dated March 1, 2002
(filed as Exhibit 10.6 to the Form 10, filed April 29, 2004,
and incorporated herein by reference).10.7
    
    Administration Agreement between Goldman Sachs Hedge Fund
Partners, LLC and SEI Global Services, Inc. dated February 9, 2007.14.1*
    
    Code of Ethics for Goldman Sachs Hedge Fund Partners, LLC
(filed as Exhibit 14.1 to the Form 10-K, filed March 29, 2005,
and incorporated herein by reference).14.2
    
    Amended Code of Ethics for Goldman Sachs Hedge Fund Strategies
LLC.31.1
    
    Certification of Chief Executive Officer in the form
prescribed by Rule 13a-14(a) or 15d-14(a) under the Securities
Exchange Act of 1934.31.2
    
    Certification of Chief Financial Officer in the form
prescribed by Rule 13a-14(a) or 15d-14(a) under the Securities
Exchange Act of 1934.32.1
    
    Certification of Chief Executive Officer in the form
prescribed by 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    
    Certification of Chief Financial Officer in the form
prescribed by 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    Previously filed. E-1




---



##### 



INDEX OF FINANCIAL STATEMENTS
 PageDescription of Financial Statements
    
    
    NumberGoldman Sachs Hedge Fund Partners, LLC Financial StatementsReport of
Ernst & Young LLP, Independent Registered Public Accounting Firm
    
    
    F-2Schedule of Investments as of December 31, 2006 and 2005
    
    
    F-3Balance Sheet as of December 31, 2006 and 2005
    
    
    F-5Statement of Operations for the years ended December 31, 2006, 2005 and 2004
    
    
    F-6Statement of Changes in Members Equity for the years ended December 31, 2006, 2005 and 2004
    
    
    F-7Statement of Cash Flows for the years ended December 31, 2006, 2005 and 2004
    
    
    F-8Notes to Financial Statements
    
    
    F-9
 F-1




---



##### 



Report of
    Ernst & Young LLP,
    Independent Registered Public Accounting Firm
           ERNST &
    YOUNG LLP
    F-2




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  Schedule
    of Investments
  December 31,
    2005 and 2004
  2006


2005% of


% of adjusted





% of


% of adjustedFair


members


members


Fair


members


membersInvestee

value


equity(1)


equity(2)


value


equity(1)


equity(2)Goldman Sachs Global Equity
    Long/Short, LLC

$
243,737,514



36.81
%


35.54
%

$
294,096,911



37.97
%


26.21
%Goldman Sachs Global Event Driven,
    LLC


240,699,867



36.36
%


35.10
%


301,443,254



38.91
%


26.86
%Goldman Sachs Global Relative
    Value, LLC


98,479,997



14.87
%


14.36
%


317,728,892



41.02
%


28.32
%Goldman Sachs Global Tactical
    Trading, LLC


103,332,963



15.61
%


15.07
%


211,060,876



27.25
%


18.81
%Total investments (cost
    $554,997,009 and $949,298,808, respectively)

$
686,250,341



103.65
%


100.07
%

$
1,124,329,933



145.15
%


100.20
%   (1)
    
    Members equity used in the
    calculation of the investments as a percentage of members
    equity, is reduced for member redemptions that are paid after
    the balance sheet date.(2)
    
    Adjusted members equity used
    in the calculation of the investments as a percentage of
    adjusted members equity, represents members equity
    excluding Redemptions in the amount of $23,701,199 payable at
    December 31, 2006 and Redemptions in the amount of
    $347,523,596 payable at December 31, 2005.   F-3




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  Schedule
    of Investments (continued)
  December 31,
    2006 and 2005
        2005% ofProportionate


% of


adjustedShare of Fair


members


membersInvestee

Underlying investment


Value


equity(1)


equity(2)Goldman Sachs Global Event Driven,
    LLC


OZ Domestic Partners, LP



23,653,904



3.04
%


2.10
%Goldman Sachs Global Relative
    Value, LLC


OZ Domestic Partners, LP



18,712,511



2.41
%


1.66
%   (1)
    
    Members equity used in the
    calculation of the underlying investments held by the Investees
    as a percentage of members equity, is reduced for member
    redemptions that are paid after the balance sheet date.(2)
    
    Adjusted members equity used
    in the calculation of the underlying investments held by the
    Investees as a percentage of adjusted members equity,
    represents members equity excluding Redemptions payable in
    the amount of $347,523,596 that was payable at December 31,
    2005.   F-4




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  BALANCE
    SHEET
  December 31,
    2006 and 2005
  2006


2005ASSETSAssets:Investments (cost $554,997,009 and
    $949,298,808, respectively)

$
686,250,341


$
1,124,329,933Cash and cash equivalents


1,224,850



706,812Total assets

$
687,475,191


$
1,125,036,745LIABILITIES AND
    MEMBERS EQUITYLiabilities:Redemptions payable

$
23,701,199


$
347,523,596Due to managing member


1,415,426



2,321,114Due to bank


15,592



10,112Accounts payable and accrued
    liabilities


268,500



583,040Total liabilities


25,400,717



350,437,862Members equity (units
    outstanding 4,928,239.53 and 6,507,125.18, respectively)


662,074,474



774,598,883Total liabilities and
    members equity

$
687,475,191


$
1,125,036,745Analysis of members equity:Net capital contributions,
    accumulated net investment income/(loss) and realized
    profit/(loss)

$
530,821,142


$
599,567,758Accumulated net unrealized
    profit/(loss)

$
131,253,332


$
175,031,125    F-5




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  STATEMENT
    OF OPERATIONS
  For the
    years ended December 31, 2006, 2005 and 2004
  2006


2005


2004Income from trading:Equity in earnings of investees:Realized profit/(loss)

$
119,798,202


$
38,871,694


$
18,366,046Changed in unrealized profit/(loss)


(43,777,793
)


27,944,887



53,652,341Net trading profit/(loss)


76,020,409



66,816,581



72,018,387Interest income


476,147



161,801



495,194Expenses:Management fee


9,131,947



13,560,772



12,234,696Professional fees


481,551



1,237,030



1,641,442Interest expense


252,759



37,747



546,069Miscellaneous expenses


60,654



1,199



35,645Total expenses


9,926,911



14,836,748



14,457,852Net investment income/(loss)


(9,450,764
)


(14,674,947
)


(13,962,658
)Net income/(loss)


66,569,645



52,141,634



58,055,729Less: Incentive allocation to the
    managing member


3,328,482



2,615,216



2,902,854Net income/(loss) available for
    pro-rata allocation to members

$
63,241,163


$
49,526,418


$
55,152,875    F-6




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  STATEMENT
    OF CHANGES IN MEMBERS EQUITY
  For the
    years ended December 31, 2006, 2005, and 2004
  Managing








Totalmembers


Members


Members


membersequity


units


equity


equityBalance at December 31, 2003

$




8,540,512.41


$
933,245,742


$
933,245,742Subscriptions






1,238,393.44



126,385,622



126,385,622Redemptions


(2,902,854
)


(1,321,377.58
)


(157,329,006
)


(160,231,860
)Share class conversion






(350,724.93
)






Allocations of net income/(loss):Incentive allocation


2,902,854











2,902,854Pro-rata allocation










55,152,875



55,152,875Balance at December 31, 2004






8,106,803.34



957,455,233



957,455,233Subscriptions






2,253,291.93



225,329,193



225,329,193Redemptions


(2,615,216
)


(3,708,281.88
)


(457,711,961
)


(460,327,177
)Share class conversion






(144,688.21
)






Allocations of net income/(loss):Incentive allocation


2,615,216











2,615,216Pro-rata allocation










49,526,418



49,526,418Balance at December 31, 2005






6,507,125.18



774,598,883



774,598,883Subscriptions






418,830.00



41,883,000



41,883,000Redemptions


(3,328,482
)


(1,650,633.46
)


(217,648,572
)


(220,977,054
)Share class conversion






(347,082.19
)






Allocations of net income/(loss):Incentive allocation


3,328,482











3,328,482Pro-rata allocation










63,241,163



63,241,163Balance at December 31, 2006

$




4,928,239.53


$
662,074,474


$
662,074,474    F-7




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  STATEMENT
    OF CASH FLOWS
  For the
    years ended December 31, 2006, 2005, and 2004
  2006


2005


2004Cash flows from operating
    activitiesNet income/(loss)

$
66,569,645


$
52,141,634


$
58,055,729Adjustments to reconcile net
    income/(loss) to net cash from operating activities:Purchases of investments


(92,900,000
)


(192,640,000
)


(174,845,756
)Proceeds from sales of investments


607,000,001



228,080,000



124,823,619Realized profit/(loss) from sales
    of Investments


(119,798,202
)


(38,871,694
)


(18,366,046
)Change in unrealized profit/(loss)


43,777,793



(27,944,887
)


(53,652,341
)(Increase)/decrease in
    operating assets:Other assets










77,464Increase/(decrease) in
    operating liabilities:Due to managing member


(905,688
)


(926,660
)


(721,913
)Accounts payable and accrued
    liabilities


(314,540
)


(339,466
)


753,631Net cash from operating activities


503,429,009



19,498,927



(63,875,613
)Cash flows from financing
    activitiesSubscriptions


41,883,000



225,329,193



126,385,622Redemptions


(544,799,451
)


(241,350,217
)


(66,214,849
)Proceeds from loan


79,732,020



13,448,144



3,000,000Repayments of loan


(79,726,540
)


(16,438,032
)


(47,500,000
)Net cash from financing activities


(502,910,971
)


(19,010,912
)


15,670,773Net change in cash and cash
    equivalents


518,038



488,015



(48,204,840
)Cash and cash equivalents at
    beginning of year


706,812



218,797



48,423,637Cash and cash equivalents at end
    of year

$
1,224,850


$
706,812


$
218,797Supplemental disclosure of cash
    flow informationCash paid by the Company during
    the year for interest

$
247,279


$
27,635


$
546,069    F-8




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
  Note 1 
    Significant accounting policies
  Organization and basis of financial statements
        Consolidation
   F-9




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
   Note 1 
    Significant accounting policies (continued)
    December 31, 2006% owned


Adjusted


Adjusted %Company


Investee


by the


Investee


owned by theinvestment


equity(1)


Company(1)


equity(2)


Company(2)GELS

$
243,737,514


$
834,038,536



29.22
%

$
885,765,989



27.52
%GED


240,699,867



917,260,045



26.24
%


958,045,903



25.12
%GRV


98,479,997



314,304,435



31.33
%


340,185,617



28.95
%GTT


103,332,963



244,658,889



42.24
%


287,382,985



35.96
%Total

$
686,250,341   December 31, 2005% owned


Adjusted


Adjusted %Company


Investee


by the


Investee


owned by theinvestment


equity(1)


Company(1)


equity(2)


Company(2)GELS

$
294,096,911


$
816,334,736



36.03
%

$
971,851,587



30.26
%GED


301,443,254



971,795,729



31.02
%


1,014,743,053



29.71
%GRV


317,728,892



397,729,785



79.89
%


742,911,706



42.77
%GTT


211,060,876



316,096,988



66.77
%


484,726,735



43.54
%Total

$
1,124,329,933   (1)
    
    The Investees equity used in
    the calculation of the percentage owned by the Company is
    reduced for member redemptions from the Investees that are paid
    after the balance sheet date.(2)
    
    The Adjusted Investees Equity
    used in the calculation of the percentage owned by the Company
    represents Investees equity excluding Redemptions payable
    at December 31, 2005 and December 31, 2006.  Equity in earnings of investees
    Cash and cash equivalents
   F-10




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
   Note 1 
    Significant accounting policies (continued)
  Allocation of net income/(loss)
    Subscriptions and redemptions
    Income taxes
    Indemnifications
    Note 2 
    Investments
   F-11




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
   Note 2 
    Investments (continued)
          Year Ended December 31,Investee

Liquidity


2006


2005


2004GELS


(1
)

$
27,640,603


$
25,751,277


$
17,695,686GED


(2
)


33,856,614



20,855,652



27,901,912GRV


(3
)


8,751,105



12,266,713



17,918,978GTT


(4
)


5,772,087



7,942,939



8,501,811Total





$
76,020,409


$
66,816,581


$
72,018,387   (1)
    
    Redemptions can be made quarterly
    with 45 days notice, or at the sole discretion of the
    Managing Member.(2)
    
    Effective January 1, 2006,
    redemptions can be made quarterly with 91 days notice, or
    at the sole discretion of the Managing Member. Prior to
    January 1, 2006, redemptions could be made semi-annually
    with 45 days notice, or at the sole discretion of the
    Managing Member.(3)
    
    Effective January 1, 2006,
    redemptions can be made quarterly with 91 days notice, or
    at the sole discretion of the Managing Member. Prior to
    January 1, 2006, redemptions could be made quarterly with
    45 days notice, or at the sole discretion of the Managing
    Member.(4)
    
    Effective January 1, 2006,
    redemptions can be made quarterly with 60 days notice
    (prior to the valuation date), or at the sole discretion of the
    Managing Member. Prior to January 1, 2006, redemptions
    could be made semi-annually with 60 days notice, (prior to
    the redemption date), or at the sole discretion of the Managing
    Member. F-12




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
   Note 2 
    Investments (continued)
  Goldman Sachs Global Equity Long/Short, LLC
  Goldman Sachs Global Event Driven, LLC
  Goldman Sachs Global Relative Value, LLC
  Goldman Sachs Global Tactical Trading, LLC
 F-13




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
   Note 2 
    Investments (continued)
    2006


2005


2004Management


Incentive


Management


Incentive


Management


IncentiveInvestee

fees


fee


fees


fee


fees


feeGELS


1.60
%


19.91
%


1.50
%


19.94
%


1.42
%


20.00
%GED


1.51
%


19.91
%


1.47
%


19.92
%


1.43
%


19.94
%GRV


1.64
%


20.98
%


1.65
%


20.88
%


1.57
%


20.76
%GTT


2.11
%


21.71
%


2.02
%


20.63
%


2.05
%


20.46
%       Investee

12/31/2006


12/31/2005GELS

$
193,158,402


$
241,980,239GED


178,904,875



236,665,601GRV


90,318,077



282,956,248GTT


92,615,655



187,696,720Total

$
554,997,009


$
949,298,808    Note 3 
    Fees
       F-14




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
  Note 4 
    Risk Management
          Note 5 
    Related parties
         F-15




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
  Note 6 
    Borrowing facility
      Note 7 
    New accounting pronouncements
     F-16




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
  Note 8 
    Members equity
    Year ended December 31, 2006


Year ended December 31, 2005


Year ended December 31, 2004Units


Amount


Units


Amount


Units


AmountShare Class
    Conversion
    Class ASeries 1


1,747,528.47


$
219,744,215



911,205.28


$
109,573,710



4,493,143.70


$
512,003,655Series 2










(687.41
)


(71,818
)


(415,994.14
)


(44,920,761
)Series 3










(83,221.74
)


(8,734,155
)


(752,365.57
)


(80,402,510
)Series 4










(12,734.34
)


(1,346,355
)


(879,574.26
)


(94,683,681
)Series 5










(17,500.00
)


(1,850,110
)


(654,391.41
)


(69,753,438
)Series 6










(298,400.00
)


(31,325,187
)


(836,120.00
)


(86,760,878
)Series 7










(412,100.00
)


(42,863,013
)


(1,210,045.71
)


(125,529,478
)Series 8










(231,250.00
)


(23,383,072
)


(86,289.39
)


(9,029,305
)Series 9


(210,475.70
)


(22,009,240
)










(8,313.51
)


(845,096
)Series 10


(494,654.82
)


(52,022,308
)










(774.64
)


(78,508
)Series 11


(303,250.00
)


(31,573,596
)














Series 12


(263,000.00
)


(27,533,177
)














Series 13


(279,367.65
)


(29,690,733
)














Series 14


(276,499.99
)


(29,272,927
)














Series 15


(128,500.00
)


(13,455,578
)














Series 16


(52,500.00
)


(5,421,351
)














Series 17


(10,000.00
)


(1,023,103
)














Series 18


(51,262.50
)


(5,179,803
)














Series 19


(12,000.00
)


(1,233,270
)














Series 20


(13,100.00
)


(1,329,129
)






(347,082.19
)

$




(144,688.21
)

$




(350,724.93
)

$
Subscriptions
    Class ASeries 1





$







$




182,499.95


$
20,796,273Series 2


















687.41



68,741Series 3


















83,221.74



8,322,174Series 4


















12,734.34



1,273,434Series 5


















17,500.00



1,750,000Series 6


















298,400.00



29,840,000Series 7


















412,100.00



41,210,000Series 8


















231,250.00



23,125,000Series 9










244,566.36



24,456,636







 F-17




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
  Year ended December 31, 2006


Year ended December 31, 2005


Year ended December 31, 2004Units


Amount


Units


Amount


Units


AmountNote 8 
    Members equity(continued)Series 10










546,895.41



54,689,541







Series 11










313,250.00



31,325,000







Series 12










282,000.00



28,200,000







Series 13










305,217.66



30,521,766







Series 14










294,000.00



29,400,000







Series 15










128,500.00



12,850,000







Series 16










52,500.00



5,250,000







Series 17










10,000.00



1,000,000







Series 18










51,262.50



5,126,250







Series 19










12,000.00



1,200,000







Series 20










13,100.00



1,310,000







Series 21


20,000.00



2,000,000















Series 22


126,060.00



12,606,000















Series 23


17,500.00



1,750,000















Series 24


16,500.00



1,650,000















Series 25


26,000.00



2,600,000















Series 26


5,000.00



500,000















Series 27


19,000.00



1,900,000















Series 28


79,750.00



7,975,000















Series 29


20,000.00



2,000,000















Series 30


6,020.00



602,000















Series 31


39,000.00



3,900,000















Series 32


44,000.00



4,400,000















Total


418,830.00


$
41,883,000



2,253,291.93


$
225,329,193



1,238,393.44


$
126,385,622   Year ended December 31, 2006


Year ended December 31, 2005


Year ended December 31, 2004Units


Amount


Units


Amount


Units


AmountRedemptionsClass ASeries 1


1,650,633.46


$
217,648,572



3,549,600.61


$
441,034,885



1,321,377.58


$
157,329,006Series 9










34,090.66



3,553,991







Series 10










52,240.59



5,492,810







Series 11










10,000.00



1,041,174







Series 12










19,000.00



1,989,089







Series 13










25,850.01



2,747,295







Series 14










17,500.01



1,852,717







1,650,633.46


$
217,648,572



3,708,281.88


$
457,711,961



1,321,377.58


$
157,329,006  F-18




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
   Note 8 
    Members
    equity(continued)
    Year ended December 31, 2006


Year ended December 31, 2005


Year ended December 31, 2004Units


Amount


Units


Amount


Units


AmountNon-managing membersClass ASeries 1


4,509,409.53


$
618,241,552



4,412,514.52


$
554,854,668



7,050,909.85


$
847,881,523Series 2


















687.41



71,818Series 3


















83,221.74



8,734,155Series 4


















12,734.34



1,346,355Series 5


















17,500.00



1,850,110Series 6


















298,400.00



31,325,187Series 7


















412,100.00



42,863,013Series 8


















231,250.00



23,383,072Series 9










210,475.70



22,009,240







Series 10










494,654.82



52,022,308







Series 11










303,250.00



31,573,596







Series 12










263,000.00



27,533,177







Series 13










279,367.65



29,690,733







Series 14










276,499.99



29,272,927







Series 15










128,500.00



13,455,578







Series 16










52,500.00



5,421,351







Series 17










10,000.00



1,023,103







Series 18










51,262.50



5,179,803







Series 19










12,000.00



1,233,270







Series 20










13,100.00



1,329,129







Series 21


20,000.00



2,180,597















Series 22


126,060.00



13,362,621















Series 23


17,500.00



1,846,363















Series 24


16,500.00



1,713,051















Series 25


26,000.00



2,660,197















Series 26


5,000.00



521,404















Series 27


19,000.00



1,990,075















Series 28


79,750.00



8,361,171















Series 29


20,000.00



2,081,244















Series 30


6,020.00



630,689















Series 31


39,000.00



4,025,172















Series 32


44,000.00



4,460,338















Subtotal


4,928,239.53


$
662,074,474



6,507,125.18


$
774,598,883



8,106,803.34


$
957,455,233Managing member






















Total members equity





$
662,074,474






$
774,598,883






$
957,455,233   F-19




---



##### 



GOLDMAN
    SACHS HEDGE FUND PARTNERS, LLC
  NOTES TO
    FINANCIAL STATEMENTS
  December 31,
    2006
  Note 9 
    Financial highlights
    2006


2005


2004Class A


Class A


Class ASeries 1


Series 1


Series 1Per unit operating performance:Net asset value, beginning of
    period

$
125.75


$
120.25


$
113.95Income from operations:Net trading profit/(loss)


13.67



7.44



8.30Net investment
    income/(loss)(1)(2)


(2.32
)


(1.94
)


(2.00
)Total income/(loss) from operations


11.35



5.50



6.30Net asset value, end of period

$
137.10


$
125.75


$
120.25Ratios to average net
    assets(3)Expenses


1.36
%


1.36
%


1.48
%Incentive allocation


0.46
%


0.22
%


0.28
%Total expenses and incentive
    allocation


1.82
%


1.58
%


1.76
%Net investment income/(loss)


(1.76
)%


(1.57
)%


(1.71
)%Total return (prior to incentive
    allocation)(4)


9.51
%


4.79
%


5.83
%Incentive
    allocation(4)


(0.48
)%


(0.22
)%


(0.30
)%Total
    return(4)


9.03
%


4.57
%


5.53
%   (1)
    
    Net investment income/(loss) is
    calculated based on average shares outstanding during the period.(2)
    
    Includes incentive allocation.(3)
    
    The ratios of expenses and net
    investment/(loss) to average net assets are calculated by
    dividing total expenses and net investment income/(loss),
    respectively, by the month end average net assets for the
    period. The ratios to average net assets calculated above do not
    include the Companys proportionate share of the net
    investment income and expenses of the Investees. The ratios to
    average net assets for each member may vary based on
    individualized fee structures and the timing of capital
    transactions.(4)
    
    The components of total return are
    calculated by dividing the change in the per share value of each
    component for the period by the net asset value per share at the
    beginning of the period. The total return for Class A
    Series 1 is calculated taken as a whole. The total return
    for each member may vary based on individualized fee structures
    and the timing of capital transactions.    Note 10 
    Subsequent events
   F-20