Europe's Largest Hedge Fund Dumps Stake in Goldman (GS) as Growth Prospects Dwindle
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Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 1.7%
Revenue Growth %: +24.6%
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Has Goldman Sachs (NYSE: GS) share price peaked?
According to U.K.'s Daily Telegraph, Europe's largest hedge fund, Lansdowne Partners, has sold it's entire 4.94 million common stock stake in Goldman Sachs, about one percent of all outstanding, as concerns over continued growth continue to weigh.
The stake was valued at about £517 million, or $850 million.
Goldman shares are now trading at levels not seen since the 2008-09 financial meltdown.
Under new Volcker regulation, Goldman's lucrative property investing business has been curtailed. Reductions in leverage and new Basel III standards also convinced Lansdowne profits may thin out. According to the Telegraph, Goldman's return on equity has been cut in half, from 24 - 30 percent to just 15 percent, due to the changes.
Notably, the last time Lansdowne sold Goldman stock was ahead of the Lehman Brothers collapse in 2008. The firm isn't out of financials completely, being the third or fourth largest shareholder in Lloyd's Banking Group (NYSE: LYG).
Lansdowne currently has about $10 million in assets under management.
Bruce Berkowitz's Fairholme Capital currently retains a 1.29 percent stake in Goldman, the largest holding from a private U.S. hedge fund.
Goldman shares are up 1.3 percent early Monday.
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According to U.K.'s Daily Telegraph, Europe's largest hedge fund, Lansdowne Partners, has sold it's entire 4.94 million common stock stake in Goldman Sachs, about one percent of all outstanding, as concerns over continued growth continue to weigh.
The stake was valued at about £517 million, or $850 million.
Goldman shares are now trading at levels not seen since the 2008-09 financial meltdown.
Under new Volcker regulation, Goldman's lucrative property investing business has been curtailed. Reductions in leverage and new Basel III standards also convinced Lansdowne profits may thin out. According to the Telegraph, Goldman's return on equity has been cut in half, from 24 - 30 percent to just 15 percent, due to the changes.
Notably, the last time Lansdowne sold Goldman stock was ahead of the Lehman Brothers collapse in 2008. The firm isn't out of financials completely, being the third or fourth largest shareholder in Lloyd's Banking Group (NYSE: LYG).
Lansdowne currently has about $10 million in assets under management.
Bruce Berkowitz's Fairholme Capital currently retains a 1.29 percent stake in Goldman, the largest holding from a private U.S. hedge fund.
Goldman shares are up 1.3 percent early Monday.
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Lehman Brothers, Fairholme Capital Management, Hedge Funds, Lansdowne Partners, Bruce Berkowitz
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