Things are not what they used to be at Goldman Sachs. As we reported a few weeks ago, transformational changes are reportedly taking place there, changes which are mostly alleged to involve a big focus on electronic trading and quiet culling of superfluous salespeople and trading staff.
However, a comment in Financial News today suggests Goldman may actually need to hire some more salespeople and sales idea generators (research staff) than it has already.
Notably, a former hedge fund salesman at Goldman Sachs complained that in the past clients used to pick up the phone and call Goldman. Nowadays, however, he said: “The phones ring less often and business has migrated to “flow-monsters” such as JP Morgan or Deutsche Bank.”
Both equity and fixed income headhunters say Goldman isn’t particularly hiring at the moment – along with the rest of the street – but that its equity research department is very thin. “Compared to UBS and Deutsche, Goldman has always been very light on equity research,” says the head of one equities boutique.
Another suggests Goldman’s salespeople are having to work much harder than in the past: “Clients are getting pretty well broked by all five top forms now. In the past, people would call Goldman because they’d want to know how they were investing their own cash. They’ve lost that advantage.”
Maybe Goldman needs to retool?