We recently compiled a list of the Top 10 Stocks to Buy According to Lee Munder Capital Group. In this article, we are going to take a look at where The Goldman Sachs Group, Inc. (NYSE:GS) stands against the other stocks.

Lee Munder Capital Group Investments, more commonly known as LMCG Investments, LLC, is an independent, employee-owned investment management company. Established in 2000 as Lee Munder Capital Group, it has 25 years of average investment experience and typically deals with alternative investments and wealth management. Specifically, the globally focused investment management firm provides a diverse array of investment strategies tailored to institutional investors, financial advisors, and private clients. The firm specializes in global equity, fixed income, and absolute return or relative value credit strategies. With a client-first approach, LMCG prioritizes aligning its interests with those of its investors, emphasizing transparency and long-term value creation. By leveraging its expertise and disciplined investment approach, the firm aims to deliver strong financial performance and best-in-class investment solutions. Founded and managed by Lee Munder himself, the firm has established a strong reputation in the financial industry.

As of March 2024, LMCG Investments manages discretionary assets totaling approximately $5.5 billion, serving 1,527 clients. The firm reported $1.63 billion in managed 13F securities for the fourth quarter of 2024, with its top 10 holdings making up over 28% of its portfolio. LMCG’s strategic investment approach and diversified portfolio reflect its commitment to delivering strong financial performance and value to its clients.

Munder also established Lee Munder Venture Partners LLC and founded Munder Capital Management. With extensive experience in investment management, Munder has held key positions, including Vice President at Loomis, Sayles & Co. LP. Currently, he serves as Chairman at IC Real Tech, an innovation-driven video technology company. Lee Munder holds an MBA from Wayne State University and an undergraduate degree from Ohio State University. Given this, we will take a look at top 10 stocks in Lee Munder’s portfolio.

Our Methodology

The stocks discussed below were picked from LMCG’s 13F filings for the fourth quarter of 2024. They have been compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To provide readers with a more holistic analysis of each stock, we have included the hedge fund sentiment regarding each company using data from over 900 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds show interest in? The reason is simple: our research has shown that we can outperform the market by imitating the latest top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

The Goldman Sachs Group, Inc. (NYSE:GS)

Number of Hedge Fund Holders as of Q3: 72

LMCG’s Equity Stake: $29.42 Million 

The Goldman Sachs Group, Inc. (NYSE:GS) is a leading multinational investment bank and financial services firm. Established in 1869 by Marcus Goldman in New York City, the company initially specialized in commercial paper financing for entrepreneurs. Over the decades, Goldman Sachs expanded its services and played a pivotal role in major financial markets, pioneering innovations such as using price-to-earnings ratios for company valuation instead of the conventionally used book value. Today, the firm ranks among the world’s largest investment banks, offering a diverse suite of financial services, including investment banking, securities underwriting, asset management, and wealth advisory. Recognized as a prominent financial institution, Goldman Sachs maintains a strong global presence, ranking 55th on the Fortune 500 list and 23rd on the Forbes Global 2000 list in 2024.

The Goldman Sachs Group, Inc. (NYSE:GS) operates through three primary divisions: Global Banking and Markets, Asset and Wealth Management, and Platform Solutions. Its revenue streams include advisory fees from mergers and acquisitions, underwriting services, proprietary trading, prime brokerage, and private equity investments. Goldman Sachs also generates earnings from its direct banking arm, Goldman Sachs Bank USA, and various hedge funds. By structuring complex financial products, facilitating initial public offerings, and making strategic investments, The Goldman Sachs Group, Inc. (NYSE:GS) sustains its competitive edge. With its long-standing reputation, extensive client base, and financial expertise, the company continues to be a dominant force in the global financial sector.

LMCG owns 51,377 shares of the company as of Q4 2024, with a total value of $29.42 million, representing 1.8% of Munder’s portfolio. Moreover, the fund increased its stake in Goldman Sachs Group, Inc. (NYSE:GS) by 6% during the fourth quarter of 2024, which suggests a positive hedge fund sentiment about the stock. Insider Monkey’s database indicated that 72 hedge funds out of the 900 hedge funds held stakes in the company as of the end of Q3 2024, with a total value of $5.64 billion, as opposed to 68 funds in Q2.

The Goldman Sachs Group, Inc. (NYSE:GS) announced on January 13 that it would be strengthening its position in private credit and private equity by launching the Capital Solutions Group, integrating financing, structuring, and risk management services within Global Banking & Markets. Additionally, the firm is expanding its alternative investment team in Asset & Wealth Management to enhance investment sourcing and strategy. With a history of leading major equity offerings and debt financings, the company continues to enhance its service offerings to meet the growing demand for alternative investments. This strategic expansion reinforces Goldman Sachs as one of the top stocks to buy, driven by innovation, strong market positioning, and a proven ability to adapt to evolving financial trends.

Ariel Appreciation Fund stated the following regarding The Goldman Sachs Group, Inc. (NYSE:GS) in its Q4 2024 investor letter:

“Several stocks in the portfolio delivered solid returns in the quarter. Global investment bank, The Goldman Sachs Group, Inc. (NYSE:GS) outperformed on a robust quarterly earnings beat, highlighted by strength across its investment banking, trading and asset management segments. Meanwhile, the U.S. election has been widely viewed as a positive catalyst across the industry. Investors expect the incoming administration to 1 The “Magnificent Seven” are the largest stocks in the S&P 500 Index driving market performance: Apple Inc. (AAPL), Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOGL), Meta Platforms Inc. (META), Microsoft Corp. (MSFT), NVIDIA Corp. (NVDA) and Tesla, Inc. (TSLA). 2 Hobson, Mellody and John W. Rogers Jr. “What the Stock market Taught Us This Year: Don’t Fall for These Investing Traps.” Wall Street Journal, 5 December 2023. emphasize deregulation and exhibit a greater openness to business combinations compared to the prior regime. Hence, management’s positive commentary around the operating momentum of its core franchises, an improving M&A outlook and the resilience of the U.S. economy sent shares higher.”

Overall GS ranks 9th on our list of Lee Munder Capital Group’s top stock picks. While we acknowledge the potential of GS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.