Goldman's Asset Management Unit Buys Turkey & Argentina Debt

The Goldman Sachs Group’s GS investment management subsidiary, Goldman Sachs Asset Management (“GSAM”), is purchasing government debt from Turkey and Argentina as it finds these markets capable of offering more profitable bond trades in 2018. The news was reported by Bloomberg.

Philip Moffitt, head of fixed income in Asia-Pacific region, noted that GSAM has acquired an overweight position in the dollar bonds of these emerging markets. He reasoned that though due to some “dysfunctional, local political events” in these regions investors are selling these notes, they still have the potential to fund themselves.

Moffitt remains confident of their balance sheets and believes that even Turkey, despite its political backdrop, retains the ability to fulfill interest obligations. Further, he shared his view on the euro and dollar strength.

Owing to stable monetary policy and growth of the domestic economy, the euro is expected be “strongest of the Group-of-Three currencies”. Also, dollar is likely to continue to strengthen especially against emerging-market Asian currencies. Moreover, improving economic backdrop in the United States on the back of lower tax rates and easy monetary policy will continue to support dollar.

While Goldman is focused on Turkey and Argentina, other fund managers are eyeing opportunities in other markets. BlackRock BLK finds Indonesian stocks to be attractive currently. Also, Franklin Templeton Investments, a unit of Franklin Resources BEN, thinks that the “rout” in the emerging markets might be nearing end.

Goldman’s strong investment banking operations help keep its overall performance solid. Further, the company’s efforts to tap new growth opportunities through several strategic investments, including the digital consumer lending platform, will likely support its overall business growth.

Shares of Goldman have lost 10.2% so far this year compared with 5.9% decline witnessed by the industry it belongs to.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A stock in the same space worth considering is Evercore EVR. The stock has witnessed upward estimate revisions for current-year earnings over the past 30 days. Also, the company’s shares have rallied 31.5% in the past year. It carries a Zacks Rank of 2 (Buy).

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
 
Evercore Inc (EVR) : Free Stock Analysis Report
 
Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
 
BlackRock, Inc. (BLK) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research