Paulson Fund's Latest Bets: Still a Tough Road

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Includes: BAC, COF, TMO, WFC
by: Cambridge Fund Research

As we pointed out in our Q1 report on Paulson & Co., Joun Paulson's Q1 bets didn’t appear to be paying off and, indeed, he has had a well-publicized tough quarter. We provide a comprehensive look at the top 20 positions in his latest filing below (click here for our full Paulson Q2 2011 report):

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Shares are shown below (still sorted by Q2 2011 Market Value):
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As part of his ‘financials recovery’ theme, Paulson continued to accumulate shares of Capital One Financial (NYSE:COF):

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Despite a rather uneventful Q1 for this stock, the recent sell-off has sent shares down steeply:

Wells Fargo (NYSE:WFC) was another big increase for Paulson from 20.5M shares to 33.6M:

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This stock has steadily been under pressure over Q2 and has also sold off fairly substantially recently:

Bank of America (NYSE:BAC) is one large financial position that Paulson dramatically reduced in Q2:

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This position saw a very rapid decline while Paulson was reducing his position only to lose another 20%+ last week:

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One new position in the top 20 is Life Technology Corp (NASDAQ:LIFE), which is a life sciences company with “a focus on improving the human condition worldwide”. This stock appears to be a favorite among some other large hedge funds, Glenview Capital & Maverick:

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After posting disappointing Q2 results, the stock sold off substantially but given the nature of the bio-tech space and Paulson’s origin as a Merger Arb specialist, it’s likely he thinks this stock represents a buyout candidate:

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.