Hedge fund manager Whitney Tilson says in a couple years Goldman Sachs be the “premier investment bank in the world,” according to The Wall Street Transcript. Tilson, who has a reputation of picking “unloved” stocks, says he’s been “bottom fishing” the financials lately.
He’s bullish on Goldman Sachs, which he notes has been trading 13% below its tangible book value of $120.
“Goldman is being priced as if it is worth more dead than alive, which is crazy,” Tilson said in the TWST.
Goldman delivered disappointing third-quarter earnings reporting its second quarterly loss in history.
Shortly after Goldman’s earnings loss, Tilson added new positions in Goldman, JPMorgan and Citigroup, according to Reuters HedgeWorld.
Tilson said in TWST the reason Goldman lost money in the latest quarter is because “they reduced risk” due to current market volatility.
He thinks that will change in the near future.
“…a year or two from now, Goldman will be the premier investment bank in the world, and that it should be able to earn at least 15% return on equity,” he said.
Goldman’s stock is down more than 35% YTD.
Tilson’s T2 Partners, which was reportedly down 30% YTD as of mid-October, also owns positions in JPMorgan, Wells Fargo and Citigroup, according to The Wall Street Transcript.