Goldman Sachs highlights energy stocks and alternative asset managers amid oil price surge

Goldman Sachs highlights energy stocks and alternative asset managers amid oil price surge.

Investing.com -- US stocks edged higher Monday as investors processed a more than 5% increase in oil prices while the Strait of Hormuz remains closed, according to Goldman Sachs.

Front-month Brent crude reached $100 per barrel following the weekend surge, though this level remains consistent with average prices seen since the start of the Iran war that began on February 28. Goldman Sachs analyst Neil Mehta released a note Monday identifying 10 energy stocks to purchase based on normalized oil price levels.

The investment bank also examined how the energy crisis is affecting exploration and production companies and refinery earnings in a recent podcast discussion with Mehta.

Separately, investors are contending with a decline in private credit markets, which has increased financing costs and created challenges for some consumer-focused payments platforms, according to Goldman Sachs analyst Will Nance.

The private credit situation is particularly affecting alternative asset managers with poor positioning, as private credit has represented approximately 50% of the sector's management fee growth. However, Goldman Sachs notes the private credit issues are concentrated among retail investors rather than institutional investors.

Goldman Sachs analyst Alex Blostein stated that outside of Blackstone and Owl Rock Capital, which have significant retail exposure, opportunities are emerging for alternative asset managers to earn larger fees and credit spreads by providing capital to private credit vehicles and direct loans.

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