Artisan Partners Limited Partnership - Antero Peak Strategy on The Goldman Sachs Group Inc
Thesis
Goldman Sachs is held within the new Evolving Financials theme. The fund believes financial companies spent the post-global-financial-crisis period improving efficiency, reducing costs and strengthening capital while facing increasingly restrictive regulation and depressed capital markets activity. Capital markets activity, lending and confidence are now recovering while the regulatory pendulum appears to be becoming more favorable. Deregulation could unlock excess capital, accelerate buybacks, increase lending and improve returns on equity. The strategy believes this creates an unusual combination of cyclical recovery and structural improvement in financial-sector economics.
“The result may be a rare setup where cyclical recovery and structural improvements are occurring simultaneously.”