Sumary of Goldman Lost $820MM Trading Stocks In Q2 As It Quietly Liquidated Billions In Equities:
- , commission-based flow trading ) results – all of which came in stellar especially on the banking advisory side and equity trading.
- According to Goldman’s investor presentation, “equity investments net revenues reflected significant net losses from investments in public equities during the quarter compared with net gains in 3Q20, partially offset by significantly higher net gains from investments in private equities.
- “Goldman further breaks down the equity revenue, and notes that whereas investments in private equity brought in $1.755BN, public equities actually led to a whopping $820 Million loss (compared to $780 Million profit a year ago).
- Wait, “significant losses” from investments in public stocks in Q3, a quarter in which the S&P barely had any dips and only neared a 5% drawdown toward the end, on Sept 30, on the combination of soaring energy prices, China’s property crisis, stagflation fears and the Fed’s taper.
- For the most part, however, Q3 was just as quiet and buoyant as Q2, a quarter in which Goldman’s prop trading desk made a whopping $5.1 billion.
- was Goldman short the market as it ripped higher in Q3?Surely someone on the Goldman call would or should ask this question, although we doubt it – analysts there seemed far too starstruck with DJ D-Sol’s banking and flow trading revenue.
- But if they don’t ask about how Goldman lost almost a billion trading stocks, surely someone will ask why the bank keeps dumping stocks, pardon “harvesting” gains, hand over fist.
- This number was offset by $5 billion in equity additions, for a total Net Dispositions amount of $11 billion, or “harvesting” since the bank’s 2020 Investor Day.