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<\/picture><\/a><\/p>\n… when the bank reported its\u00a0second best quarter on record<\/a>, there was some more notable slide in the bank’s\u00a0Q2 earnings presentation<\/a>, and it had to do with what Goldman is doing for its own prop, or “asset management” book.<\/p>\n As shown in the table below, Goldman’s Asset Management (F\/K\/A “prop”) also had a stellar quarter, generating a record $5.1BN in net revenue, more than double the year ago quarter.<\/p>\n In explaining the group’s stellar performance, Goldman writes that “equity investments produced record net revenues, with the YoY increase primarily driven by significantly higher net gains from investments in private equities, driven by company-specific events, including capital raises and sales, and improved corporate performance versus a challenging 2Q20.”<\/p>\n The bank then breaks down the asset mix of its prop traders, which as of Q2 had some $21 billion in equity investments spread across various sectors, vintages and geographies (mostly the US).<\/p>\n Which brings us to the punchline: a chart showing what Goldman\u00a0had done\u00a0<\/em>with its equity investments in 2021. Here the bank pulls no punches, making it clear in the title that it has been busy “harvesting<\/strong><\/em>” its balance sheet equity portfolio. Which, of course, is another word for selling.<\/p>\n What is even more remarkable is just how much Goldman has harvested so far in 2021: as shown below, having started with a $20BN equity portfolio which has enjoyed a $5BN increase in market prices,\u00a0Goldman dumped a whopping $5.5 billion of its equity assets so far (excluding a modest $1.5BN in purchases) or more than a quarter of its entire portfolio as of Dec 31.<\/strong><\/p>\n<\/picture><\/a><\/p>\n<\/picture><\/a><\/p>\n