Citigroup and Barclays also released second quarter position reports. Jin Shi’s exclusive collation found that the positions of the four investment banks in the second quarter had obvious similarities,
. However, with the same position strategy, according to the existing data, only Barclays and Goldman Sachs obviously outperformed the market, while Xiaomo and Citigroup were close to a tie with the market. In the first quarter, the results of the four investment banks were 34.61% (Citigroup), 28.61% (Goldman Sachs), 25.21% (Xiaomo) and 21.8% (Barkley).
Why did Barclays turn against the wind and why Citigroup failed? What makes this difference? Has the market wind changed? Let’s focus on their specific strategies.
first of all, we will focus on the turnaround of the performance of the bank. Its positions are relatively concentrated. The top ten positions account for 33.6% of the total assets, while the other three investment banks are close to 20% or less. Looking at the position of Barclays, we also find that it pays special attention to hedging.
among the top five positions, SPDR S & amp; P 500 ETF calls accounted for 8.38% of the total positions, and SPDR S & amp; P 500 ETF put options accounted for 6.91% of the total positions. The fourth and fifth are also stock related assets, namely, ETF put options and call options in the INVESCO Nasdaq 100 index, which are still two-way positions of options that can be opened and withdrawn. It is worth noting that, from the above data, we can find that Barclays is bullish on the S & P 500 index, and slightly bearish on the Nasdaq 100 index.
in the second quarter, the largest increase in positions of Barclays was Baba’s put options and some high-yield corporate bonds; the largest reduction was in the S & P 500 Index ETF, and continued to reduce its position in industrial gas giant Lin plexus common stock.
the position of Barclays is in line with their recommendations to high net worth clients. They suggested in June that high net worth clients invest about one third of their multi asset portfolio in the US stock market in the medium term, because its risk return rate is the most attractive.
according to the data provided by whalewisdom, the return rates of Barclays in April and may were 12.62% and 15.63%, respectively, higher than those of the other three investment banks.
the market value of Goldman Sachs Group’s position in the second quarter increased by 16% to US $329.379 billion from US $283.841 billion in the first quarter. The top five positions were the S & P 500 Index ETF, apple, Microsoft, Amazon and iShares Russell 2000 Index ETF.
the largest increase in Goldman Sachs positions is the S & P 500 Index ETF, iShares Russell 2000 Index ETF, iShares Russell 2000 Index ETF put options and S & P 500 Index ETF call options. At the same time, the largest reduction in positions is INVESCO Nasdaq 100 Index ETF call options, pharmaceutical company Allergan and apple.
we can see that Goldman Sachs is more confident in the S & P 500 index and is more optimistic about small cap stocks. It may be expected that it will have a large room for growth, but it has prudently hedged. While Goldman is still heavily invested in technology stocks, it has begun to sell gradually.
under such a strategy, the second quarter performance of Goldman Sachs is also quite impressive. According to whalewisdom, its performance in April and may is only slightly lower than that of Barclays. Goldman Sachs this month said it was ready for a big reversal in market style. Kamakshya Trivedi, a strategist at Goldman Sachs, said: “888]
investors should be prepared to actively respond to the concentrated outbreak of a number of major events at the end of the year, resulting in a sharp reversal of market winds. Traditional cyclical stocks and bank stocks will be supported in the coming months as investors underestimate the impact of vaccine development and the US election on the stock market, while the leading position of technology stocks may be challenged.
according to the latest data, the total market value of Xiaomo’s position in the second quarter increased by 17% from $442.599 billion in the first quarter to $518.171 billion.
in the second quarter, Xiaomo added 707 subjects to its position portfolio and increased its holdings by 2108. The top five overweight stocks are JP Morgan beta builder Europe ETF, apple, JP Morgan beta builder Japan ETF, JP Morgan betabuilder international stock ETF and Boston Science Corporation.
we can see from the data of the first five big increases and decreases in positions that Xiaomo seems to be just replacing the Index ETF of Morgan Stanley in its original position with the beta builder series issued since 2018, still focusing on Boston science, the world’s leading medical technology company.
from the previous five positions, JP Morgan has a heavy position in the S & P 500 Index ETF, Microsoft, apple, Amazon and vanguard international bond market ETF. Alibaba is its sixth largest stake.
according to whalewisdom statistics, JPMorgan’s return on investment in April was slightly higher than that of the market, and slightly lower than that of the S & P 500 index in May.
Pedro Martins Junio, JPMorgan’s chief Latin American equity strategist in Sao Paulo, said in July that as the epidemic continues to spread and the expanding deficit threatens corporate returns in 2021, emerging market stocks are facing increasing risks. In the emerging market equity model, India’s market rating was downgraded from neutral to low. Super match China, Brazil, Indonesia, Russia and South Korea.
the market value of Citigroup’s position in the second quarter increased by 9.5% to US $1281.16 billion from US $110.62 billion in the first quarter.
Citi’s top five overweight stocks are: INVESCO Nasdaq 100 Index ETF call option and INVESCO Nasdaq 100 Index ETF put option, iShares Russell 2000 Index ETF put option and iShares Russell 2000 Index ETF call option and apple. It can be seen that Citigroup’s focus in the second quarter may be technology stocks and small cap stocks.
Citigroup’s most reduced positions are put options on some high-yield corporate bonds, Allergan common stock of pharmaceutical company, ETF put options of S & P 500 index and call options of some high-yield corporate bonds.
Citi’s top five positions include: S & P 500 Index ETF put option, iShares Russell 2000 Index ETF put option, S & P 500 Index ETF, S & P 500 Index ETF call option and INVESCO Nasdaq 100 Index ETF put option.
Citigroup said this month that the U.S. stock market is likely to go down with the exit of policy makers’ stimulus measures. The current stimulus measures enable companies to pass on labor costs to the government, and boost corporate profits to be stronger than expected.
Citigroup’s performance in the second quarter is not optimistic. According to whalewisdom statistics, the investment return of Citigroup in April was only 6.93%, which was lower than the market; the investment return rate in May was only slightly higher than that of the S & P 500 index.