Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
New York Times reports that Goldman Sachs’ efforts to hedge its bets in commodity trades, along with fixed income and currency trades, resulted in a disappointing drop in reported income in Q2.
On Tuesday Goldman reported $1.05 billion in profit in the second quarter, or $1.85 share.
Analysts were expecting $2.27 a share.
The firm substantially reduced its risk in the three months ended June 30, an overly conservative approach that cost millions in the short term, said a person with knowledge of the matter who was not authorized to speak on the record. Goldman, in part, hedged its trading activities, a move that ate into profit. It also robbed the company of the upside in certain commodities like oil, the person said.
Image of Goldman Sachs building is by Quantumquark.
