Business Insider just reported that Landsdowne Partners, one of Goldman's top 20 investors has dumped its entire $850 million stake. Wow, talk about lack of confidence. Of course, as you will see, they are taking some losses also and their investment in GS is not helping them at all.
BI goes on to explain,
The Telegraph cites four reasons why the $10 billion long/short equity hedge fund run by Stuart Roden and Peter Davies sold the huge stake:
- Dodd Frank legislation that caused Goldman to get rid of its proprietary trading business
- Capital requirements
- "The bank saw its shares hit a two-year low of $125.50, having fallen 19.2% this year"
- "Profits in the second quarter of the year fell to $1.09 billion, from $2.7 billion in the first three months of the year, as its behemoth Fixed Income, Currency and Commodity division saw revenues tumble by 64pc from the first quarter"