Wednesday, November 25, 2009

Goldman Sachs on Track to Lowest Closing Price Since November (GS; BRK.A) and "Hedge Funds Beating Warren on Big Bet"

I know Mr. Buffett said he'd hold the warrants until the day before expiration but still...
From Bespoke Investment Group:

While there probably aren't a lot of people shedding tears over it, the stock of Goldman Sachs (GS) can't seem to get out of its own way. We've highlighted the relative weakness in this stock several times over the last few weeks, so this shouldn't come as any surprise, but GS is now on pace to close at its lowest levels since early November. Politicians in Washington and conspiracy theorists may be rejoicing in Goldman's misery, but if there's one thing Goldman employees can be thankful for it is that with the stock lagging the overall market, the intensity of public backlash directed towards the company seems to have abated. Next thing you know, the conspiracy theorists will claim that 'evil' Goldman is purposely making their stock weak just so they can buy back the stock at lower prices.

Goldman Sachs 112509

From CNBC:

Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
Warren Buffett is losing his "big bet" against a collection of hedge funds, but it's still early in the game.

Buffett and Protégé Partners LLC of New York City started a 10-year wager last year.

With a Treasury bond that will be worth $1 million at stake, Buffett has put real money behind his contention that an S&P 500 index fund will outperform five funds-of-hedge-funds over a decade, after all fees and expenses. (The money goes to the winner's favorite charity.)

Buffett is represented by Vanguard 500 Index Fund Admiral Shares (VFIAX). Protégé chose the five funds-of-funds. (Buffett knows the names of the five funds, but they are not being publicly revealed.)

Now, Fortune's Carol Loomis writes, the results for 2008 are in (it took awhile for all the funds to submit audited financial statements) .. and .. the hedge funds "soundly whipped" the index.

They fell, on average and net of all expenses and fees, only 23.9 percent. That's not great, but its still much better than the Vanguard index fund's 37 percent plunge, even with the index fund's much smaller fees and expenses....MORE