Goldman Sachs (GS) traders raked in money on every single day of the first quarter, an achievement Wall Street’s alpha dog has never accomplished before.
The firm’s traders didn’t have a single trading day in which they made less than $25 million in net revenue. That’s 63 days profitable out of 63 trading days.
Apparently, the record figure revealed by the New York-based firm in a filing with the SEC today, are the result of the investment bank being prepared to take more risks than rivals. On the other hand, this extraordinary success might reinforce for some the idea that Goldman has an unfair advantage.
“It will reinforce the heads we win, tails you lose mentality that people think actually exists and promotes the concept of an unfair advantage,” Douglas Ciocca, a managing director at Renaissance Financial, which owns Goldman shares, told Bloomberg. “It’s too politically charged not to, how is that possible that they only make money?”
During the quarter Goldman made $25 million to $50 million on 7 different days ; $50 million to $75 million on 50 different days ; $75 million to $100 million on 16 different days, and more than $100 million daily on 35 different days.
“This is the first time we have reported zero trading loss days in a quarter,” Samuel Robinson, a Goldman Sachs spokesman, said in an e-mail to Bloomberg News. “We believe it shows the strength of our customer franchise and risk management.”
Goldman generated $9.74 billion in trading revenue in the 1Q’10, exceeding all of its Wall Street competitors.