Goldman Sachs Group, Inc.
Thesis
We have a sizable position in Goldman Sachs, which is the most productive investment banking organization in terms of revenues per head. The company has a strong internal culture and a deep bench of talent, which positions it well to adapt to changes in the industry. We believe it remains undervalued relative to its tangible book value.
Did it work?
The thesis is a valuation-driven long on Goldman Sachs, arguing the stock is undervalued relative to tangible book value, supported by qualitative claims about productivity and talent depth. With no price performance data and an unknown elapsed time, there is no way to assess whether the valuation gap closed or the qualitative advantages translated into outperformance. Since the thesis contains no specific catalyst whose outcome can be independently confirmed or invalidated, the verdict must remain open.