The chart below tracks the performance of the hallowed Goldman Sachs European “conviction buy list” relative to the MSCI Europe index.
It shows that Goldman’s analyst calls have outperformed the index by 14 per cent since January, 2008:
The MSCI Europe however has fallen 36.5 per cent since January 2008, meaning Goldman’s spectacular record would still have resulted in you losing money.
Benchmarking, as all managers know, can be a beautiful thing.
Related links:
The management myth – FT Alphaville
Anatomy of a Goldman trading huddle – FT Alphaville
Goldman’s VIP-list – FT Alphaville