Is Goldman Sachs Trustworthy?
Alt title: Econ Smackdown: Paul Tudor Jones vs Goldman Sachs
Goldman may (or may not) have top notch analysts and an excellent research department. But given their history of saying and selling one thing and then doing another, can anyone trust what comes from them?
Should hedge funds be setting their Outlook to auto-delete anything from GS.com research department? How can you tell what is a real research report versus disinformation or some bizarre Psy-ops strategy?
All of this raises the more basic question: Can their clients trust what GS generates, when they don’t know if they are a) trading the opposite side of the report for their own accounts; or b) HFT front running ?
The question isn’t whether Goldman Sachs is Taibbi’s “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
It is much more simple than that — the more relevant question is “Can Goldman Sachs be trusted by their own clients ?”
“Paul Tudor Jones, the billionaire hedge-fund manager who outperformed peers last year, is wagering that Goldman Sachs Group Inc. and Morgan Stanley got it wrong in declaring the start of an economic recovery.
Jones’s Tudor Investment Corp., Clarium Capital Management LLC and Horseman Capital Management Ltd. are taking a bearish stand as U.S. stock and bond prices rise, saying that record government spending may be forestalling another slowdown and market selloff. The firms oversee a combined $15 billion in so- called macro funds, which seek to profit from economic trends by trading stocks, bonds, currencies and commodities.”
I am curious if anyone has any related thoughts on the matter . . . ?