Goldman Sachs has released their top trades for 2012.  There are some interesting ideas in here.  Some bullish bets and some bearish bets:

1. Short European High Yield credit (Buying protection on the iTraxx Crossover index), for a target of 950bp (opened at 770bp) and a potential return of 4.5%, stop at 680bp

2. Short 10-yr German Bunds for a target of 2.8% (open at 2.3%) and a potential return of +4.5%, stop 2.0%

3. Go long EUR/CHF for a target of 1.35 (opened at roughly 1.2260) and a potential return of 11% including carry, stop at 1.20

4. Long Canadian equities (S&P TSX) vs Japanese equities (Nikkei), FX unhedged for a target of 120 (opened at 100) and a potential return of 20%, stop at 90

5. Long a Global Rebalancing Basket (CNY, MYR versus GBP, USD) for a target of 107 (opened at 100) and a potential return of 7%, stop at 98

6. Long July 2012 ICE Brent Crude Oil futures for a target of $120/bbl (opened at $107/bbl) and a potential return of 12%, stop at $100/bbl

Source: Zero Hedge


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Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

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  • Kid Dynamite

    do you have their top trades for 2011 so we can evaluate how they did?

  • bearshort

    Well, a good portion of their prop trading team did go to KKR this year. Judging by their EURUSD recommendations, you might have a nice return if you started an inverse GS fund.

  • Cullen Roche
  • AWK

    Uh-oh. You quoted Zero Hedge. I’m amazed I posted a comment before Zero Brains did. Or did I (given moderation delay)?

  • JB

    Cullen what are your trades for 2012? That would be more interesting that those pricks at GS

  • Larry

    Cullen, when and where did you call for the “face ripping rally” in equities? Kudos to you, but unfortunately I missed it. I read the majority of items on your site, including comments, but somehow missed that one. Again, kudos, and you are doing a great job

  • ZeroBrains

    That’s rich. Tyler stole and posted the whole proprietary note. He has no shame.

  • Andrew

    Have plenty of clean underpants ready for the will they-won’t they solve the Euro crisis moments.

    That’s unless the Gnomes raid your drawers.

  • JWG

    ZH’s pure contempt for GS in particular and the Wall Street-DC scam machine in general warms my heart. I will not lose any sleep over ZH “stealing” information that is obviously given to it by GS insiders or customers. The average Wall Street guy would sell his grandmother down the river for an extra 50 basis points on a deal, and so I don’t worry about ZH’s ethics. The fact that the editorial content and commentariat at ZH are more often than not insane just adds entertainment value to the site.

  • daniel

    How can an average person trade the itraxx crossover index?