Goldman Sachs is 'best in breed,' portfolio manager says

Ellison on GS: Just hold it, and let the market take care of itself

Goldman Sachs is the best in breed in the business it's in and is the kind of stock investors want to own, Hennessy Funds portfolio manager David Ellison told CNBC on Friday.

He believes the financial firm is going to benefit from higher stock prices, increased initial public offerings and more activity in the market.

"The earnings are generally going to move up," Ellison said in an interview with "Closing Bell."

"You just hold it and let the market take care of itself."

Lloyd Blankfein, chairman and chief executive officer of Goldman Sachs Group Inc.
Michael Nagle | Bloomberg | Getty Images

Financials have been soaring since President-elect Donald Trump's victory Nov. 8, with Goldman Sachs up 33 percent in that time period. Investors have been encouraged by promises of tax cuts and deregulation.

Jackie Reeves, managing director at Bell Rock Capital, sees strong underling tail winds.

"There is an overall bias here on the financials, specific Goldman as it relates to increased capital markets activity, increased M&A opportunities ... [and] IPO activity is looking better for 2017, especially as the stock market improves," she told "Closing Bell."

Reeves is also unconcerned about the possibility that Gary Cohn, Goldman's president and chief operating officer, will leave to take a role in the Trump administration.

Sources have told NBC News that Trump has offered Cohn a key economic post.

"Goldman has a deep bench of talent," Reeves said. "We don't really think there is any risk, if you will, on that side of the equation."

Disclosure: Ellison and Reeves own Goldman Sachs