LONDON, March 13 (Reuters) - Hedge funds ended last week positioned to scoop up winning profits from bearish positions on bank stock falls, according to a note by Goldman Sachs sent to clients late on Sunday.
They sold financially themed shares and banks for nine straight weeks but rather than only exiting long positions, funds added bearish bets, according to the note seen by Reuters.
Financials was the most net sold sector globally for Goldman Sachs's prime brokerage division, the part of the bank which serves hedge funds, the note said.
Hedge funds not only exited bullish positions on bank themed equities, they added short positions as of Friday, betting bank shares would fall, the Goldman note said.
Regional and smaller U.S. bank shares have slid on concerns of a broader fallout in the banking sector.
Goldman Sachs has invited wealth management clients to invest in fintech unicorn Stripe, as reported by Bloomberg.
The message was a rare peek into how the richest bank clients can access investments normally off-limits to individual investors.
Insider redacted the wealth management vice president's name and email address to protect their privacy.
Citi and JPMorgan, for instance, both have teams dedicated to direct private investments for private bank clients.
Private wealth is a real power alley for us, and those continue to be good sources of funding," said Salisbury at a conference in September.
MUMBAI, Feb 6 (Reuters) - The Indian rupee was headed lower against the dollar on Monday after a better-than-expected U.S. jobs report prompted investors to bet on more Federal Reserve rate increases.
The 1-month non-deliverable forward suggested that the rupee would open at 82.35-82.40 to the dollar compared with 81.8275 in the previous session.
"We continue to expect two more 25 basis points fed funds rate hikes in March and May, and we continue to expect no rate cuts in 2023."
Goldman Sachs's call for no rate cuts this year compares to CME futures indicating shallow rate cuts later this year.
"Oil prices are a big positive for the rupee, but we doubt that will have a large impact," the trader said.
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Market confidence that the Fed is just about done - reinforced by the statistical trappings of a recession in waiting – is combining with an overall decent level of economic activity and companies trying to defend profit margins.
Bond yields continue to retrace higher after a ferocious Treasury rally in recent months, which along with firmer oil and copper prices imply the global-growth tone is seen as steadier.
A clear trend this year is the sharp outperformance of non-US stocks.
Breadth is strong again, not quite a blast-off 90% upside day, but continuing a good run for the majority of stocks.
VIX under 20, benign but hard to see it falling too much in the nine days before the Fed decision but we'll see.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailJim Cramer goes over Goldman Sachs's and Morgan Stanley's most recent quarterly earnings reportsCramer gave his take on the two banks' earnings reports on Tuesday.
Rising interest rates roiled markets last year and global investment banking revenue sank more than 50% from a year-earlier quarter, according to data from analytics firm Dealogic.
SHARPLY LOWERAcross the board, investment banking fees were sharply lower.
Morgan Stanley's revenue from investment banking business fell 49% in the fourth quarter while Goldman Sachs's investment banking fees fell 48%.
JPMorgan's investment banking unit saw its revenue down 57%, Citigroup Inc's (C.N) investment banking revenue plunged 58% while Bank of America Corp (BAC.N) investment banking fees more than halved.
Strength in trading helped offset a slump in investment banking, while interest rate hikes by the U.S. Federal Reserve helped income.
NEW YORK, Jan 13 (Reuters) - Goldman Sachs Investment Strategy Group expects U.S. equities to generate positive returns for investors in 2023 even if the economy enters a recession, according to its outlook report released on Friday.
The bank's wealth management team expect the benchmark S&P 500 (.SPX) to end 2023 at between 4,200 and 4,300 points, up to 12% higher than its 2022 year-end level.
Last year, the S&P fell 19.4% in its worst year since 2008, reflecting higher interest rates and recession fears.
Goldman Sachs's team also considers indexes in Europe, Japan, Britain and emerging markets will deliver gains to investors this year.
They said there is a "fog of uncertainty still facing investors", but overall the outlook seems more positive for both equities and bonds.
[1/2] The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021.
REUTERS/Andrew Kelly/File PhotoJan 9 (Reuters) - Goldman Sachs Group (GS.N) will start cutting thousands of jobs across the firm from Wednesday, two sources familiar with the move said, as it prepares for a tough economic environment.
Goldman Sachs declined to comment.
Hundreds of jobs are also likely to be reduced from Goldman Sachs' loss-making consumer business after it scaled back plans for its direct-to-consumer unit Marcus, the sources said.
Investment banking fees nearly halved in 2022, with $77 billion earned globally by the banks, down from $132.3 billion one year earlier, Dealogic data showed.
Deals are set to revive slowly as companies and funds watch out for easier macroeconomic conditions, they said.
"This will provide a more stable backdrop for the return of a more robust M&A market," said Maliah.
Deals in private equity, a major M&A driver, amounted to $139 billion as of Dec. 15, down 52% on all of 2021.
"Banks' ability to write big-size checks is still much challenged," said Samson Lo, UBS's co-head of Asia-Pacific M&A.
An improvement in Asian equity capital market volumes from three-year lows will also help M&A deals, dealmakers said.
As investors become increasingly focused on the shift to electric vehicles, Goldman Sachs has a list of stocks aligning with automotive technology trends.
With this in mind, Delaney laid out his top picks for the industry, ranging from electric vehicle makers to component suppliers.
But softer anticipated supply and demand prompted Delaney to lower the price target to $235 from $305.
GM said in November it expects profits from electric vehicles to be around equal to gas vehicles by 2025 , which would put the legacy automaker multiple years ahead of its previously set schedule.
Last month, Morgan Stanley downgraded the stock to equal weight from overweight due to impacts from a slower rollout of electric vehicles.
chartAccording to Morgan Stanley, the relief rally that engulfed risk assets produced the second-largest year-to-date easing in U.S. financial conditions, worth 30 basis points.
By this measure, financial conditions now are easier than they were before the Fed's September and November rate hikes.
If all that is true, there may be less need to focus so heavily on financial conditions, and a more balanced monetary policy now is sensible.
To be clear, the Fed isn't completely turning its back on financial conditions.
By this measure, financial conditions have tightened considerably in recent months.
Asian markets close the week on a solid footing, which is how they may well round off the year if financial conditions - global and local - remain as supportive as they are right now.
Annual inflation in November is expected to fall to 5.1% from 5.7% in South Korea.
chartThe substantial easing in U.S. financial conditions since mid-October has been crucial to this performance.
Local financial conditions are also supportive.
Financial conditions in Japan, South Korea and Thailand have all stayed relatively tight, almost entirely due to the appreciation of their currencies against the dollar.
Late on Tuesday Atlanta Fed President Raphael Bostic said policy tightening so far has not dented inflation, and on Wednesday San Francisco Fed President Mary Daly said pausing the hiking cycle is off the table and is not part of the discussion.
Until recently, Daly was one of the most dovish members of the Federal Open Market Committee.
Her comments helped push Wall Street into the red on a day when bulls might have expected to have the upper hand.
The more the economy refuses to slow, the more aggressive the Fed will have to be.
Wall Street - and stocks and risk assets around the world - has a problem.
WageFi raised $400,000 from investors include former American Express and Goldman Sachs executives.
Prshant Batra, who founded the company this year and serves as its CEO, previously worked for Goldman Sachs's consumer banking unit, Marcus, and American Express.
The startup plans to mainly work with small and medium-sized businesses within the service industry that WageFi believes is underserved with financial products.
While this is the first institutional funding for WageFi, Batra said he's not rushing any other fundraising for the company.
Here is an exclusive look at the pitch deck WageFi used to raise $400,000 in pre-seed funding.
Blackstone is doubling down on private credit investments in a volatile market.
While its corporate private equity investment performance fell in the quarter, private credit rose.
As stock markets plunge, private equity investments' values sour, and central banks hike interest rates, the growing private credit market is heating up — and benefitting private investors stepping in to make loans as banks pull back.
Take Blackstone, the world's largest alternative asset manager known for its powerful private equity and real estate businesses.
Risks and opportunitiesBlackstone is hardly alone as it doubles down on private credit investments.
David Solomon is changing up Goldman Sachs divisions like he switches tracks.
Goldman Sachs's third restructuring in four years comes as insiders have been questioning the direction that Solomon is taking the storied investment bank in.
But first, read Dakin's rundown of who's up and who's down in the latest Goldman Sachs restructuring under CEO David Solomon.
The Swiss bank's investment bank chief Christian Meissner is also set to leave the company in the coming weeks.
Keep updated with the latest business news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief.
Goldman Sachs CEO David Solomon took major steps to restructure the Wall Street bank in 2020.
This week he acknowledged that some of his bets, including consumer bank Marcus, are not paying off.
Despite the move away from consumer banking, Solomon appears to want to continue to push into wealth management.
In October, he said Goldman Sachs Asset Management has grown into the nation's fifth largest asset manager.
"We also believe that reaching and serving employees in their workplace is a significant growth opportunity for Goldman Sachs," Solomon said on the third-quarter call.
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Goldman Sachs's US Economics team is anticipating three rate hikes this year, ending at a 4% rate.
It's looking like interest rate hikes aren't going away anytime soon even as financial conditions keep tightening.
Goldman Sachs' US economics team is anticipating three more rate hikes this year, according to a September 9 equity strategy note, with the next one coming in hot on September 21 at 75 basis points.
The note adds that increasing nominal treasury yields, widening credit spreads, a strengthening US dollar, and compressed equity valuations add to the evidence that financial conditions are tightening.
Since tightening financial conditions are a key source of macro uncertainty, the investment bank predicts that these stocks should generate attractive risk-adjusted returns.