4. The Goldman Sachs Group, Inc. (NYSE:GS)
Fisher Asset Management’s Stake Value: $1 billion
Number of Hedge Fund Holders: 75
P/E Ratio: 5.6
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the largest financial corporations in the United States. The company provides services like asset management, financial management, transaction banking, financial research and access to markets. Fisher Asset Management’s equity in the company is a close second to Eagle Capital Management’s stake in Goldman Sachs worth $1.1 billion. The Goldman Sachs Group has a P/E of 5.6, reinforcing its position in value stocks to buy in 2022 according to Ken Fisher.
75 hedge funds were bullish on the stock in the last quarter of 2021. In the same quarter, an investor letter from Ariel Investments discussed The Goldman Sachs Group. This is what they said:
“Rising interest rates, after a surprisingly long period of low absolute rates and negative “real” rates, will create a headwind. While there has been much debate about the cause of these low rates, we believe the most important factor has been the $120 billion in monthly federal reserve open market bond purchases and the accumulation of an $8 trillion balance sheet. The former will end, and the latter will shrink. It is not just the Fed that has aggressively purchased bonds, bidding up prices and lowering yields. Bond traders and hedge fund managers have added to positions, confident that being on the same side as the Fed was the wise place to be. Now as the Fed is about to become a seller of bonds rather than a buyer, Wall Street’s “smart money” is likely to follow suit. Against this backdrop, fixed income securities and bond substitutes such as high dividend paying utilities and absolute return hedge funds are substantially overpriced and are not likely to produce attractive returns going forward.
This expectation of a reversion to the mean for interest rates helped 2021 performance, though not as much as we had hoped. The yield on the U.S. 10-year Treasury did indeed increase from +0.92% at the beginning of the year to +1.52% at year-end. An underreported story was the poor performance of bonds last year. The Barclays Aggregate Index declined -1.67% for the year ending December compared to a return of +28.71% for equities as measured by the S&P 500. Interest rates have continued to climb in 2022 with the 10-year Treasury at +1.79% as we go to print. This move higher in rates has contributed to our good, early start to 2022. The Goldman Sachs Group, Inc. (NYSE:GS) jumped +47.59% for the year and +1.73% in the quarter.”
On May 9, Bloomberg reported that Goldman Sachs is not working with most of the special purpose acquisition corporations it took public any longer due to its reservations around the new liability guidelines.
