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

John Paulson is the most successful hedge fund manager of the past four years. He made $4 billion by betting against subprime mortgage investments in 2007 and another $5 billion by betting on gold and the recovery of the economy in 2010. Paulson's Paulson & Co. manages separate client-focused portfolios, employing merger arbitrage, long/short, and event-driven strategies. Paulson uses fundamental analysis to make his investments.

Paulson’s overall performance disappointed his investors so far this year. Especially his longer term holdings performed worse than the market. That’s why we wanted to check out his performance in his newer purchases. Here are John Paulson’s new purchases during the past 12 months (see Paulson's top holdings here):

Hewlett Packard (HPQ) recently traded at $33.32 and has a 1.4% dividend yield. HPQ lost 26.03% during the past 12 months. The stock has a market cap of $71.1 billion and P/E ratio of 8.4. Paulson initiated his $1.02 Billion position in HPQ during the first quarter. Appaloosa’s David Tepper also increased his bet on HPQ. He now has $260 Million in HPQ. (Check out Tepper’s top holdings.)

Lubrizol (LZ) recently traded at $134.39 and has a 1.07% dividend yield. LZ gained 41.99% during the past 12 months. The stock has a market cap of $8.7 billion and P/E ratio of 12.36. Paulson initiated his $804 million merger arbitrage position in LZ during the first quarter. He isn’t expected to generate more than a few percentage points from this investment.

Weyerhaeuser (WY) recently traded at $18.55 and has a 3.16% dividend yield. WY gained 10.1% during the past 12 months. The stock has a market cap of $10.2 billion and P/E ratio of 9.98. Paulson initiated his $780 million position in WY during the first quarter.

XL Group (XL) recently traded at $21.11 and has a 2.02% dividend yield. XL gained 20.88% during the past 12 months. The stock has a market cap of $6.7 billion and P/E ratio of 34.56. Paulson initiated his $723 million position in XL during the fourth quarter of 2010.

Alpha Natural Resources (ANR) recently traded at $34.7 and lost 3.98% during the past 12 months. The stock has a market cap of $4.8 billion and P/E ratio of 36.77. Paulson initiated his $712 million position in ANR during the first quarter. Cramer also recommended ANR back in March but the stock kept declining because of the fall in coal prices. Glenn Russell Dubin’s Highbridge Capital and James Dinan’s York are also bullish about ANR.

Baxter (BAX) recently traded at $54.68 and has a 2.23% dividend yield. BAX gained 26.67% during the past 12 months. The stock has a market cap of $31.7 billion and P/E ratio of 15.17. Paulson initiated his $430 million position in BAX during the fourth quarter of 2010.

BlackRock (BLK) recently traded at $166.46 and has a 3.17% dividend yield. BLK gained 11.08% during the past 12 months. The stock has a market cap of $33.4 billion and P/E ratio of 14.14. Paulson initiated his $402 million position in BLK during the fourth quarter of 2010.

Medtronic (MDT) recently traded at $33.61 and has a 2.83% dividend yield. MDT lost 7.2% during the past 12 months. The stock has a market cap of $36.4 billion and P/E ratio of 12. Paulson initiated his $366 million position in MDT during the fourth quarter of 2010.

International Paper (IP) recently traded at $26.76 and has a 3.7% dividend yield. IP gained 18.6% during the past 12 months. The stock has a market cap of $12.4 billion and P/E ratio of 9.99. Paulson initiated his $302 million position in IP during the fourth quarter of 2010.

Whirlpool (WHR) recently traded at $65.19 and has a 2.99% dividend yield. WHR lost 20.27% during the past 12 months. The stock has a market cap of $5.1 billion and P/E ratio of 20.34. Paulson initiated his $252 million position in WHR during the fourth quarter of 2010.

Teva Pharmaceutical (TEVA) recently traded at $41.73 and has a 2.06% dividend yield. TEVA lost 13.48% during the past 12 months. The stock has a market cap of $39.8 billion and P/E ratio of 12.14. Paulson initiated his $223 million position in TEVA during the fourth quarter of 2010.

Fifteen hedge funds had TEVA among their top 10 holdings. Hedge funds collectively own 4% of TEVA's outstanding shares. Jeffrey Altman is also the largest investor in TEVA among the hedge funds we track. Boykin Curry's Eagle Capital and Leon Cooperman's Omega Advisors were other hedge fund managers who are bullish about TEVA.

Genon Energy (GEN) recently traded at $3.6 and lost 3.6% during the past 12 months. The stock has a market cap of $2.9 billion. Paulson initiated his $197 million position in GEN during the fourth quarter of 2010.

Howard Hughes Corp. (HHC) recently traded at $52.64 and has a market cap of $2.1 billion. Paulson acquired his $155 million position in HHC after its spin-off during the fourth quarter of 2010. Bill Ackman is also a large investor in HHC and he made a ton of money from his GGP and HHC investments.

Source: John Paulson's New Purchases