Should you invest in the Goldman Sachs (GS) group?


Asset management firm Manole Capital Management recently released its Q3 2022 Letter to Investors. A copy of it can be downloaded here. In 2022, the US stock index, the S&P 500, was very volatile and fell by 25%. The fund primarily focuses on the payments industry, a growing segment. During this fluctuating market, the company is prepared and takes this volatility into account in its portfolio. For more information on the fund’s top picks in 2022, please see its top five holdings.

Manole Capital Management mentioned The Goldman Sachs Group, Inc. (NYSE:GS) in its third quarter letter to investors. Based in New York, New York, The Goldman Sachs Group, Inc. (NYSE: GS) is a financial company that operates through the segments of investment banking, global markets, asset management and consumption and wealth management. On November 14, 2022, The Goldman Sachs Group, Inc. (NYSE:GS) stock closed at $382.36 per share. The one-month return of The Goldman Sachs Group, Inc. (NYSE:GS) was 21.83%, while its shares have lost 5.14% of their value over the past 52 weeks. The Goldman Sachs Group, Inc. (NYSE: GS) has a market capitalization of $129.48 billion.

Manole Capital Management made the following comment about The Goldman Sachs Group, Inc. (NYSE:GS) in its third quarter 2022 letter to investors:

“In 2019, Goldman Sachs, Inc. (NYSE:GS) caused a stir in the card industry by working with Apple and MasterCard on a credit card. The actual card is quite elegant (as you can see below) as the customer names are engraved on an Apple titanium card. The no-fee card generated a lot of hype as many early adopters quickly posted their latest card on various social media sites.

Marcus’ original goal (in 2016) was to leverage Goldman’s wonderful brand and create a full-service digital bank. This card was an important part of GS’s ambitions to grow its retail banking franchise called Marcus. After 5 years, Marcus now has 14 million customers and $16 billion in loan balances. Surprisingly, Marcus now accounts for nearly 20% of the company’s total revenue.

We thought it would be interesting to see how the Apple Card is doing in terms of loans and exposures. With over $100 billion in assets, it has been a successful source of cheap deposits for GS. Despite having an institutional/”white shoe” brand in the world of investment banking and trading, GS’s Apple Card has been a disappointment. (Click here to read the full text)

Goldman Sachs Group, Inc. (NYSE:GS) is not on our list of the 30 most popular stocks among hedge funds. According to our database, 69 hedge fund portfolios held The Goldman Sachs Group, Inc. (NYSE:GS) at the end of the second quarter, up from 71 in the previous quarter.

We discussed The Goldman Sachs Group, Inc. (NYSE:GS) in another article and shared ClearBridge Investments’ views on the company. Additionally, please see our Q3 2022 Hedge Fund Investor Letters page for more letters to hedge fund investors and other leading investors.

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Disclosure: none. This article originally appeared on Insider Monkey.


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