Wednesday, November 4, 2009

Goldman's q3 trading revenue down, hit-rate up (GS)

I've been waiting for their 10Q to come out. The charts on pages 124 of these reports highlight trading revenue by day.

Due to summer vacations, Goldman made over $100million (in its trading account)per day only 55% of the time, down from 70% in the second quarter.

Lest you worry about them though, they made money 98% of the time versus 97% last quarter. I've previously written about Goldman's shift from an investment bank to a hedge fund, but hey at least they're a VERY VERY profitable hedge fund. That said, with a 98% hit-rate while client orders are also flying about, the argument for front-running makes a lot of sense.

2009 AlphaNinja

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