Goldman Sachs profited handsomely in the LinkedIn IPO but, for a change, some are questioning the firm's trading/investment strategies. Goldman, which acquired 871,840 shares of LinkedIn in June 2008, sold its entire stake in Thursday's IPO.  At the share price of $45, that would translate into a profit of some $39 million.  Had Goldman held onto its shares, its stake would now be worth well north of $80 million. 

    Shareholders Who Kept Large Holdings.   Most LinkedIn shareholders sold only a small portion.  Reid Hoffman, the company’s co-founder, sold just ove 115,000 shares or less than 1% of his holdings;  he still retains a 20.1% stake.  Bain Capital sold 653,880 shares in the offering, or 15% of its holding, and it still holds a 3.9% stake in the company.  Three venture capital investors - Sequoia Capital, Greylock Partners, Bessemer Venture Partners - didn't sell any shares in the IPO.  Greylock and Sequoia stand to reap a windfall - both own stakes in excess of 14%.

    Shareholders Who Sold Entire Holdings.   If it’s any consolation to Goldman, both McGraw-Hill and the SVB Financial Group cashed out - McGraw Hill sold 436,000 shares, while SVB sold over 70,000 shares. 

A spokesman for Goldman declined to comment.   [NYT Dealbook, 5/19/11]