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Another Day, Another Loss For Goldman Sachs Clients: Latest GS FX Reco Stopped Out With 0.8% Loss In Just 3 Days
Goldman's Thomas Stolper is not having a good year. Or rather, Thomas Stolper is having a blockbuster year, Goldman clients who listened to Tom Stolper are scraping the bottom of the GoM. Pretty much every single trade conceived by the Goldman FX team ends up stopping out with clients ending up on the losing end. Tonight is just such an example: "$/PHP closed London at 46.10, above our stop and leading to a potential loss of 0.8%." The trade was initiated on Monday. 0.8% in 3 days. Annualized that's just under a 100% loss. Clients 0 - Goldman + ∞.
Full note, just released:
Trade Update: Stopped out of short $/PHP after stalled CNY appreciation and rising risk aversion
On Monday we opened a short $/PHP recommendation, assuming that Asian currencies will appreciate in sync with further CNY strength following the Chinese announcement over the weekend. However since we initiated, $/CNY has basically not moved and many Asian currencies have given back initial gains. A distinctive risk off flavour for most of the week added to the pressure on pro-cyclical Asian currencies.
$/PHP closed London at 46.10, above our stop and leading to a potential loss of 0.8%. We remain short $/CNY via 1yr NDFs and short $/KRW.
GS FX Research
At this point it bears pointing out Matt Goldstein's latest report on the squid: Saving Goldman Sachs, in which Matt does a terrific and lengthy analysis of the very tenuous relationship between Goldman and its clients. In it we read such pearls:
"Goldman is the smartest guy out there, but it doesn't seem to be bound by any ethical guidelines, at least that we can see," said Michael Vogelzang, the chief investment officer at Boston Advisors, a $1.7 billion money manager, which owns shares of Goldman. "The individuals there are great. We love working with our contacts. But it is very frustrating."
Sorry Mike, no Elf Christmas party for you this year. Although maybe this will set off an avalance of all those who hate the vampire squid yet are afraid of speaking up against the monopolist firm. We doubt it: it appears Goldman is now on the offensive in retaining existing relationships:
One hedge fund trader whose firm uses Goldman as a prime broker said a Goldman executive called a few days after the SEC lawsuit and offered to treat some of the fund's trading team to a sushi lunch. Other fund customers have been similarly feted, sources said.
Another hedge fund that a year ago turned down Goldman for a prime brokerage assignment was recently contacted again by the Wall Street firm to see if it would reconsider. A person close to the hedge fund, who declined to be identified, said the incident was surprising since Goldman rarely comes back begging for business.
A former Goldman partner, who left the firm more than a decade ago but still advises a number of Goldman clients, said the firm's sudden TLC is a clear response to the SEC lawsuit and the pounding the firm suffered during an especially harsh hearing on Capitol Hill in April.
"Everything Goldman is doing now is related to the lawsuit," the former partner said. "It is about brand identity and preserving the brand."
The full article is a must read, yet Matt fails to focus precisely on such marginal incidents where Goldman, at least in its open sell side research, continues to have a sub 0.500 batting average in its recommendations, which continue to be driven by the firm's seeming permabullishness (ref A. Joseph Cohen and David Kotstin). Should the market correct at least half way to fair value and drop to 900, Goldman's clients may be forced to reevaluate their relationship with their prime broker, if for no other reason, then just the inability to pay the annual PB fee will gradually become an issue. And last time we checked Goldman does not like being paid in soft dollars.
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Loss, bitchez
Troll.
Loser!
Fucking hannah banana!
I'm pissed we can't trade USD/PHP here in the states. I checked with several firms and none of them carry the pair. Unless, someone out there can direct me to the right place.
If you surf through www.pdex.com.ph you might find links to a dealer. But why would you want to. If you can't find any dealers, imagine what the spreads are going to look like. There might not be any liquidity when you want to get out. It's not like this is a heavily traded pair outside the US.
+1.5
A magic 8-ball, ouija board, crystal ball, or a monkey trained to roll dice would give Goldmans fools/clients a 50 percent improvement vs GS FX calls.
Its a matter of days before the fools/clients get stopped out; almost like the "aaannnnd... its gone." scene from south park.
People and institutions are beginning to catch on to their Squid-like ways. It will continue. The cat is coming out of the bag. They can't help it, they are showing themselves to be the true scum that they are on a regular basis now.
I think ZeroHedge should start a "Don't participate in this manipulated market campaign." Who's money is JP Morgan and the Squid going to steal if nobody participates?
Is sell side research even incentivized to be correct? If it is as you say it is, their analysts make a sell call, then GS prop trades against it. It obviously means that GS prop doesn't really take any research seriously and essentially profit in every type of market. So really, what is the utility of sell side rsearch? Keeping up the farce? Seriously curious on their utility.
By making so many mistakes, GS will have no option but to punish them with..................................................................................................... a promotion!!
Zzzzzzzzzzzzzzz.
random anecdotes devoid of statisitical evidentiary value
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