Acquisition and Expansion - Goldman Sachs agreed to acquire Innovator Capital Management, a provider of defined outcome ETFs, for approximately $2 billion [1] - The acquisition expands Goldman Sachs Asset Management's (GSAM) product offerings, particularly in actively managed ETFs and defined outcome/income-oriented ETFs [2] Demand and Growth of Defined Outcome ETFs - Client conversations reveal increasing interest in Buffer ETFs and defined outcome ETFs [3] - The defined outcome ETF category, invented in 2018, has experienced a cumulative average growth rate of approximately 60% over the past 5 years [5] - Research suggests the defined outcome ETF category could grow by four to five times over the next 5 years [5] Features and Benefits of Defined Outcome ETFs - Defined outcome ETFs can provide downside protection and a smoother investment experience while maintaining equity exposure [7] - These ETFs can be used to gradually re-enter the market and build a diversified portfolio aligned with specific investment goals [8] - The defined outcome category includes income-oriented strategies for yield enhancement and targeted buffer strategies for downside protection [9] - Innovation in the defined outcome space includes dual directionals and auto callables, offering institutional-level strategies through ETF technology [10][11] Example ETF Performance - The Innovator Defined Wealth Shield ETF (BALT) has more than doubled the performance of the S&P 500 in a one-year period [6]

Core Viewpoint - Goldman Sachs is actively expanding its asset management business through strategic acquisitions, including the recent $2 billion acquisition of Innovator Capital Management, which is expected to enhance its ETF offerings in a growing market segment [2][3][4]. Group 1: Acquisition Details - Goldman Sachs announced the acquisition of Innovator Capital Management for approximately $2 billion, aimed at scaling its asset management operations [2]. - The acquisition is anticipated to finalize in the second quarter of 2026 [2]. - Innovator Capital Management managed over $28 billion in assets across 159 ETFs as of September 30 [3]. Group 2: Market Strategy - The acquisition of Innovator is part of Goldman Sachs' strategy to strengthen its position in the fast-growing defined-outcome ETFs market, which utilizes options to limit losses and target specific gains [3]. - CEO David Solomon emphasized that active ETFs represent a dynamic and transformative segment in the investment landscape, indicating a focus on modern investment products [4]. Group 3: Broader Acquisition Activity - The recent acquisition reflects Goldman Sachs' leadership goals to generate stable and recurring revenues while diversifying beyond traditional investment banking and trading [4]. - In addition to the Innovator acquisition, Goldman Sachs also acquired Industry Ventures for $1 billion and purchased a stake in asset manager T. Rowe Price in September [4].

The Goldman Sachs Conviction List is a curated list of stocks that the firm's research team believes are highly likely to outperform the market. ...

Core Insights - The Dow Jones Industrial Average (DJIA) is up nearly 13% year to date, with leading stocks not being pure AI plays but rather companies like Caterpillar, Goldman Sachs, and IBM [1][2][3] Caterpillar (CAT) - Caterpillar has seen a significant stock increase of approximately 66.3% year to date, driven by strong global demand for construction and mining equipment [4] - Despite a decline in adjusted profits to $4.95 per share on $17.6 billion in sales, sales rose by 10% due to higher end-user equipment volumes [5] - The U.S. infrastructure push and lower interest rates have contributed to a substantial backlog, indicating sustained revenue visibility [6] - Caterpillar is also pivoting towards AI-enabling infrastructure, with partnerships that position it as a beneficiary of the tech boom [7] - Analysts view Caterpillar as a hybrid play, justifying a forward earnings multiple of 27 times [8] Goldman Sachs (GS) - Goldman Sachs ranks second among Dow leaders with a stock increase of over 49% year to date, attributed to a rebound in dealmaking and economic stability [9] - The third-quarter earnings were $12.25 per share on $15.2 billion in revenue, surpassing estimates [9][10] - The firm has advised on over $1 trillion in announced M&A volume this year, benefiting from sustained trading revenues and a healthy growth outlook [10] - Goldman Sachs' institutional focus allows it to capture upside from corporate optimism, driving shares to an all-time high of $856 [11] IBM (IBM) - IBM has achieved a 40% year-to-date gain, with shares nearing record closing highs of approximately $308 [12] - The turnaround is driven by software and consulting segments, with third-quarter revenue up 7% to $16.3 billion at constant currency [12] - The watsonx AI platform and Red Hat integration have boosted bookings and hybrid cloud adoption, with a consulting backlog of $31 billion [13] - IBM is also making strides in quantum computing and has raised full-year guidance to 5% growth and $14 billion in free cash flow [14]

Core Insights - Goldman Sachs predicts that rising revenues in 2026 will benefit middle consumers and enhance stock performance for companies targeting this demographic [1] Group 1: Revenue Projections - The forecast indicates a significant increase in revenues by 2026, which is expected to positively impact consumer spending [1] - Companies that cater to middle consumers are likely to see stock price appreciation as a result of this revenue growth [1] Group 2: Market Implications - The anticipated revenue growth is expected to create a favorable environment for stocks focused on middle-income consumers [1] - Investors may find opportunities in sectors that align with the spending habits of middle consumers as their financial situation improves [1]

Goldman’s purchase of an ETF fund manager isn’t about helping investors. It’s about keeping the fees flowing to Wall Street, Aaron Brown says (via @opinion) https://t.co/fly3TfBMIn ...

Group 1: AI Adoption Trends - The adoption rate of artificial intelligence (AI) among U.S. companies has reached 17.4%, with large enterprises showing particularly strong willingness to implement AI technologies [1][2] - 40% of large enterprises expect to deploy AI technology within the next six months, significantly higher than the overall industry average [2] - Industries leading in AI adoption include information technology, professional services, education, finance, insurance, real estate, healthcare, and entertainment [1] Group 2: Early Adopters and Investment Returns - Early adopters of generative AI are reporting positive investment returns and significant productivity improvements, encouraging more companies to invest in AI [3] - Surveys from consulting firms and business associations indicate that early adopters have realized actual benefits from generative AI applications [3] Group 3: Employment Market Impact - The surge in AI adoption is contributing to adjustments in the employment market, with October layoffs reaching the highest level since 2003 [4] - Many companies cite cost-cutting measures and AI adoption as reasons for layoffs, posing challenges for workers in industries with high AI adoption rates [4] - The trend of technology replacing human labor may accelerate in sectors leading in AI application, such as information technology, professional services, and finance [4]

Core Insights - Goldman Sachs announced plans to acquire Innovator Capital Management for $2 billion, positioning itself as the second-largest player in the defined-outcome ETF market [2][5] - The acquisition reflects a trend of consolidation in the ETF industry as competition intensifies, with many new product providers entering the market [3][4] Company Summary - The acquisition will elevate Goldman Sachs from an early-stage defined-outcome issuer to a significant player, gaining Innovator's 150 defined-outcome products and $28 billion in assets [5] - Currently, Goldman has three buffer ETFs with approximately $36 million in assets under management, indicating a need to align its offerings with market demand [4] Industry Summary - The ETF market is expected to see increased consolidation and M&A activity as firms seek scale and unique product offerings to meet growing investor demand for defined-outcome ETFs [3][4] - The trend is driven by wealth managers looking to provide niche strategies, with a particular focus on defined outcome and buffered ETFs [4]

Copper extended its recent surge on the London Metal Exchange, with benchmark futures topping $11,700 a ton. It was the strongest rally since last summer, as investors began positioning for a possible regime of phased, near-universal copper tariffs starting in 2027.A reinforcing narrative of tightening supply and dislocated inventories also played a role. Traders have been front‑loading shipments into the US to arbitrage higher domestic prices and to hedge against future import levies. That dynamic has left ...

Few people make partner at Goldman. Two brothers doing it within two years of each other is even more unusual. https://t.co/Nmy0W8ri9m ...