Seeking Alpha
Newsletter provider, fund holdings, insider ownership
Profile| Send Message|
( followers)  

John Paulson is one of the world's most famous hedge fund managers, earning more than $5 Billion in 2010, including fees and capital gains. Paulson got his BA from New York University‘s College of Business and Public Administration and his MBA from Harvard Business School. In 2007, during the real estate bubble, he shorted subprime mortgages and provided enormous abnormal returns. Paulson's 2010 profit was one of the greatest returns in investment history, and one of the reasons for his fame. In 2010 Paulson won Absolute Return’s "Best Long-term Performance (over five years)" award for his Advantage Fund.

Paulson’s total assets under management are about $36 Billion, higher than his AUM in 2010, which was $32.1 Billion. Approximately, $29.3 Billion of his clients’ money is invested in U.S. securities. At the end of September, this number was $23 Billion. Currently he has 88 different stocks in his portfolio.

Here are the 20 largest positions of Paulson as of December 31, 2010.

COMPANY

VALUE

RETURN

(MILLION $)

SPDR GOLD TRUST (NYSEARCA:GLD)

4370

-2.40%

ANGLOGOLD ASHANTI LTD (NYSE:AU)

2016

-3.40%

CITIGROUP INC (NYSE:C)

1987

3.80%

BANK OF AMERICA CORP (NYSE:BAC)

1893

10.60%

ANADARKO PETE CORP (NYSE:APC)

1621

6.30%

HARTFORD FINL SVCS GRP (NYSE:HIG)

1164

16.30%

SUNTRUST BKS INC (NYSE:STI)

1014

7.90%

COMCAST CORP (NASDAQ:CMCSA)

879

17.40%

CAPITAL ONE FINL CORP (NYSE:COF)

830

23.90%

MGM RESORTS INTL (NYSE:MGM)

650

-0.20%

WELLS FARGO & CO (NYSE:WFC)

635

5.50%

MYLAN INC (NASDAQ:MYL)

634

10.50%

TRANSOCEAN LTD (NYSE:RIG)

500

20.00%

GENZYME CORP (GENZ)

487

5.90%

JPMORGAN CHASE & CO (NYSE:JPM)

483

13.30%

GOLD FIELDS LTD NEW (NYSE:GFI)

436

-4.60%

ALCON INC (NYSE:ACL)

409

1.20%

PFIZER INC (NYSE:PFE)

399

10.70%

BLACKROCK INC (NYSE:BLK)

381

8.40%

MCAFEE INC (MFE)

370

3.50%

Since the end of December, SPY returned 7%. Only nine of the 20 largest positions of Paulson have beaten SPY since then. Gold is still Paulson’s largest investment. Weighted average return of this portfolio is 5.6%, underperformed the SPY by 1.4 percentage points. The decline in gold prices was the main reason for his relatively poor performance. When GLD, AU and GFI are excluded, his portfolio’s return increases to 9.7% which is 2.7 percentage points higher than the SPY. Paulson has been extremely bullish about banking stocks with significant investments in Citigroup and Bank of America. William Ackman’s Pershing Square, David Tepper’s Appaloosa, Daniel Loeb’s Third Point, Andreas Halvorsen’s Viking Global, Richard Perry’s Perry Capital, Joseph DiMenna’s Zweig-DiMenna, and Leon Cooperman’s Omega Advisors are among the hedge funds who are bullish about Citigroup. Bill Miller and Lee Ainslie have large Bank of America holdings, whereas Warren Buffett sold all his BAC shares during the fourth quarter.

John Paulson significantly increased his investments in the following seven stocks during the last quarter:

STOCK

% CHANGE IN STOCK HOLDINGS

ANADARKO PETE CORP (APC)

58.8%

SUNTRUST BKS INC (STI)

16.9%

CAPITAL ONE FINL CORP (COF)

15.8%

WELLS FARGO & CO (WFC)

32.3%

GENZYME CORP (GENZ)

259.8%

ALCON INC (ACL)

83.8%

MCAFEE INC (MFE)

60.0%

Except COF and STI, these stocks underperformed SPY since December. However, weighted average return of these seven stocks was 7.7%, slightly better than SPY thanks to COF’s 23.9% return. Ray Dalio, Bill Miller, and Andreas Halvorsen are other high profile COF investors.

We recently analyzed John Paulson’s long term investments here on Seeking Alpha. He still holds all six stocks in his portfolio according to the latest 13F fillings.

STOCK

RETURN

% CHANGE IN STOCK HOLDINGS

Boston Scientific Corp (NYSE:BSX)

-0.4%

-69%

Cheniere Energy Inc (NYSEMKT:LNG)

68.7%

-62%

Kinross Gold Corp (NYSE:KGC)

-13.1%

-41%

Marshall & Ilsley Corp (NYSE:MI)

9.4%

-37%

Regions Financial Corp (NYSE:RF)

11.3%

0%

SPDR Gold Trust (GLD)

-2.4%

0%

Weighted average returns of long-term holdings are -2.3% since the end of December. Paulson reduced his BSX, LNG, KGC and MI holdings significantly during the last quarter of 2010. BSX and KGC holdings were also reduced during the third quarter. Roberto Mignone’s Bridger Management also has a significant BSX position.

During the fourth quarter of 2010, Paulson sold out 16 stocks. The most important ones are Hewitt Associates (HEW), NBTY Inc (NTY), Mariner Energy (ME), Mirant Corp (MIR) and Burger King (BKC).

Source: John Paulson's 20 Largest Holdings and Recent Performance