Fri, Feb 12, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund Lansdowne dumps entire $850m stake in Goldman Sachs

Monday, August 01, 2011
Opalesque Industry Update – Europe’s biggest hedge fund, Lansdowne Partners, has confirmed its decision to sell its entire $850m stake in American investment bank Goldman Sachs. The move raises question about the prospect of the global banking sector, various media reports say.

According to a report by the British newspaper The Independent, Lansdowne owns nearly one percent of the Wall Street bank’s equity. Lansdowne’s exposure in Goldman Sachs is equivalent to nearly 10%of its entire $10bn assets under management.

Others see the sale of at least 4.94 million Goldman shares as a further blow to the Wall Street Bank which saw its shares plunge to levels not seen since 2009 after results of second-quarter performance showed disappointing numbers.

Goldman Sachs reported a $1.09bn profit in the second quarter and announced a decision to cut up to 1,000 jobs worldwide.

What is significant with Lansdowne’s move is that the firm made a similar offloading decision at the height of the financial crisis in 2008 when it sold its shares ahead of the collapse of Lehman Brothers. The hedge fund is one of the top 20 investors in Goldman.

While the hedge fund’s decision to exit Goldman is due to the decline in the value of Goldman’s proprietary trading operations, many analysts hint that it also raises serious questions about the health of the global banking industry.

Banks’ proprietary trading operations are hit by new regulatory changes under the Volcker rule. Many investment banks have already disbanded their proprietary units.
Precy Dumlao

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise