Goldman Sachs is reportedly looking to boost its struggling commodities unit with fresh hires and new clients as it tries to rebound from its worst quarter in over 18 years.
The news was first reported by Bloomberg News’ Dakin Campbell, Jack Farchy, and Javier Blas:
The bank will bring in a few high-profile commodities salesmen as well as some traders, an acknowledgment that the roughly 180-person unit’s performance has suffered in recent years from failures to replace senior talent as it cut costs, people familiar with the strategy said.
Goldman’s commodities unit is housed in the fixed-income division of the bank. As a whole, the unit posted its worst quarterly performance since the fourth quarter of 2015 in the second quarter. The Wall Street Journal reported last week that a sour bet on the direction of natural gas prices contributed to Goldman Sachs‘ weak performance.
Goldman Sachs is also planning to do more business with existing corporate clients in the natural resources space, according to the Bloomberg story. The balance of Goldman Sachs’ client list has long been a focus for Wall Street analysts, who have questioned Goldman Sachs’ reliance on hedge fund and investor clients.