Institutional Investors Were Mixed On Goldman Sachs in Q2

Institutional investors were highly conflicted on Goldman Sachs during the second quarter of 2010.

By the end of Q2/2010, Goldman Sachs was widely rumored to be in final negotiations with the SEC to settle civil charges that alleged that Goldman had misled investors in certain mortgage securities.

The company would eventually reveal in mid-July that they had settled with the SEC for $550 million. This figure ended up being quite a bit less than what most people had originally expected.

At the end of Q2, Goldman was trading at around $131 per share. After announcing its settlement with the SEC, Goldman Sachs spiked to over $150 per share, and is currently trading at $141.81 today.

Leading up into the settlement announcement in mid-July, institutional investors were clearly very highly conflicted as to the future direction of Goldman Sachs.

Of the 96 institutional investors that we tracked in our database in Q2, nine opened new positions in Goldman Sachs, while 7 decided to sell every last one of their shares.

The 9 investors who opened up new positions in GS during Q2/2010 were:

Paulson & Co Inc - 1,100,000 shares
Bill & Melinda Gates Foundation - 500,000 shares
QVT Financial LP - 359,926 shares
AQR Capital Management LLC - 117,372 shares
Blue Ridge Capital Holdings LLC - 350,000 shares
Farallon Capital Management LLC - 108,300 shares
Fairholme Capital Management LLC - 5,990,601 shares
Harvard Management Co Inc - 6,000 shares

The 7 investors who closed their positions in GS during Q2 were:

Shumway Capital Partners LLC - 1,795,439 shares
Denali Advisors LLC - 82,837 shares
Renaissance Technologies LLC - 908,000 shares
Mazama Capital Management LLC - 3,293 shares
Bridger Management LLC - 160,000 shares
Cobalt Capital Management INC - 33,790 shares
Two Sigma Investments LLC - 62,776 shares


14 of the 96 funds in our database with existing positions in GS decided to increase the size of their holdings during Q2, while 13 decided to reduce their positions (but not sell out entirely).

Eton Park Capital Management (+1,000,000 shares), Citadel Advisors LLC (+711,564 shares) and SAC Capital Advisors LP (+109,153 shares) were some of the funds that elected to increase their exposure to GS during the second quarter, while Jennison Associates LLC (-3,068,869 shares), Janus Capital Management LLC (-2,091,640 shares) and Brookside Capital Management LLC (-1,175,000 shares) all elected to trim their positions.


It will be interesting to see how the institutional investor community reacted to the news of Goldman settling with the SEC in mid-July. We'll know when Q3 13F-HR filings are released in November..

Source: - Q2 Fund Report

Filed under: Hedge Fund News

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