Goldman Sachs BDC Inc

The letter mentions that Goldman Sachs was trimmed in the portfolio as its stock price reached new highs and its size in the portfolio had become overweighted. This indicates a cautious approach rather than a strong bullish or bearish stance on the company.

In the first quarter of 2026, we added significantly to our position in Goldman Sachs, viewing it as a high-quality business that is well-positioned for long-term growth. The market's short-term fears have created an attractive entry point for this compounder. We believe that as geopolitical situations evolve and AI reshapes competitive landscapes, Goldman Sachs will benefit from its strong market position and adaptability. Our restructuring has led us to focus on businesses like Goldman Sachs that we believe will thrive despite current uncertainties.

Goldman Sachs Group has been a long-term holding in the fund, and we maintained the position on the belief it continued to offer healthy fundamentals and a compelling valuation. Our holdings in financials also outperformed, led by Goldman Sachs Group and Citigroup. We maintain an upbeat fundamental view on the areas where we invest, and we think these factors indicate that undervalued dividend stocks continue to offer a wide range of opportunities for individual security selection.

Goldman Sachs reported a strong quarter, beating on both EPS and revenue. The increase in investment banking and trading revenue indicates robust performance, while the rise in the investment banking backlog suggests more future deals are on the horizon. Despite a decline in asset management fees, the overall outlook remains positive, reflecting the firm's strong market position and growth potential.

We are excited about the opportunity presented by Goldman Sachs, particularly in the context of the disconnect between stock prices and fundamentals. The Goldman Sachs Low Momentum basket has shown EPS growth of 17.7% while its performance has declined by approximately 12.5%. This indicates a significant opportunity as market participants are trading based on momentum rather than fundamentals. We believe that such conditions, characterized by heightened volatility, present compelling long opportunities, and we are optimistic about the potential for this to play out positively over time.

The manager discusses their portfolio adjustments, including bringing Goldman Sachs back to a normal-sized position. They express optimism about the financial sector's performance, particularly after a selloff, indicating that they believe these areas should be strong contributors to the portfolio as the year progresses.

The letter mentions Goldman Sachs Group Inc/The as a contributor to performance with a weight of 0.83%. However, there is no explicit directional argument made about the company's future prospects or valuation.