He was considered a contender to eventually become chief executive at the storied investment bank but instead is joining Michael Dell’s investment firm, MSD Capital, knowledgeable sources told The Wall Street Journal.
Goldman posted relatively weak performances from the end of the financial crisis almost until October 2018, when David Solomon took over as CEO.
Since then the firm's trading results, traditionally its bread and butter, have improved and it has expanded its consumer banking effort.
Goldman recently traded at $221.03, up 0.9%.
The New York firm's stock returned 2.17% over the past year through Friday. It has lost 1.32% annualized over the past three years, returned 4.41% annualized over the past five years and returned 4.02% annualized over the past 10 years. That 10-year performance compares with 13.9% for the S&P 500.
Morningstar analyst Michael Wong sees room for Goldman to rise, putting fair value at $238.
“While the market is unlikely to give the company much credit for its new initiatives in the near term, we believe the company has already shown positive changes in its business mix and that the market will eventually value the company much higher than it had been over the previous several years,” he wrote in a commentary last month.
“The company’s investment management business has become a priority. Assets under supervision exceeded $1.8 trillion at the end of 2019, while related investment management fees have recently clocked in at around 17% of net revenue.”