John Paulson is one of the most successful hedge fund managers since 2007. He founded Paulson & Co. in 1994. However, it is only recently that he came into the spotlight. In 2007, he gained popularity for his bets against the subprime mortgages. He made $4 billion during the year owing to his bets. He again proved his talent by betting on gold and making another $5 billion in 2010. A few months back, we wrote an article that presented Paulson’s and George Soros’ views regarding size and return.
We compiled 11 John Paulson stocks that have P/E ratios below 12 and 52 week returns less than %5. Paulson had at least $100 million invested in these stocks at the end of June. You can check out John Paulson’s top holdings at Insider Monkey.
1. CITIGROUP INC (C): Citigroup recently traded at $26.74 and has a 0.15% dividend yield. Citigroup lost 31.58% during the past 12 months. The stock has a market cap of $78 billion and P/E ratio of 8.13. Paulson had $1.4 million invested in Citigroup shares. Citigroup Inc is currently one of the most popular stocks. A lot of prominent hedge fund managers are bullish about the company; these include Bruce Berkowitz, Bill Ackman, and Lee Ainslie. Despite the bullish position of famous hedge fund managers, Citigroup has lost 33% since the end of June. Citigroup is Paulson’s third largest holding.
2. HARTFORD FINL SVCS GRP (HIG): The Hartford Financial Services Group provides insurance and financial services worldwide. HIG recently traded at $16.64 and has a 2.4% dividend yield. HIG lost 26.44% during the past 12 months. The stock has a market cap of $7.4 billion and P/E ratio of 4.67. Paulson had $1068 million invested in HIG shares.
3. WELLS FARGO & CO (WFC): Wells Fargo is a diversified financial services company that provides banking, insurance, investments, mortgage banking, investment banking, retail banking, brokerage, and consumer finance. WFC recently traded at $23.52 and has a 2.04% dividend yield. WFC lost 7.55% during the past 12 months. The stock has a market cap of $124.2 billion and P/E ratio of 9.12. Paulson had $943 million invested in WFC shares. Warren Buffett has been adding to his WFC holdings during the second quarter and he had nearly $10 billion invested in it at the end of June (see Warren Buffett’s top stock picks).
4. HEWLETT PACKARD CO (HPQ): Hewlett-Packard Company is one of the leading technology companies operating worldwide. HPQ recently traded at $22.65 and has a 2.12% dividend yield. HPQ lost 40.28% during the past 12 months. The stock has a market cap of $47 billion and P/E ratio of 5.32. Paulson had $855 million invested in HPQ shares. Forty hedge funds had Hewlett-Packard in their portfolios last quarter. Hedge funds collectively own about 4% of the outstanding shares.
5. TEVA PHARMACEUTICAL INDS (TEVA): TEVA recently traded at $38.49 and has a 2.25% dividend yield. TEVA lost 27.72% during the past 12 months. The stock has a market cap of $36.2 billion and P/E ratio of 11.03. Paulson had $202 million invested in TEVA shares. During the second quarter of 2011, John Griffin cut his stake in Teva Pharmaceuticals by 22%.
6. GENON ENERGY INC (GEN): GenOn Energy provides energy, capacity, ancillary, and other energy services in the United States. GEN recently traded at $3.07 and has a 0% dividend yield. GEN lost 18.13% during the past 12 months. The stock has a market cap of $2.4 billion and P/E ratio of 10.96. Paulson had $199 million invested in GEN shares.
7. JPMORGAN CHASE & CO (JPM): JPMorgan Chase & Co. provides various financial services worldwide. JPM recently traded at $32.08 and has a 3.12% dividend yield. JPM lost 18.18% during the past 12 months. The stock has a market cap of $125.1 billion and P/E ratio of 6.85. Paulson had $192 million invested in JPM shares. Eighty five hedge funds owned JPM during the second quarter. Hedge funds own about 4% of JPM shares. Lee Ainslie’s Maverick Capital, Jonathan Jacobson’s Highfields Capital, and Andreas Halvorsen’s Viking Global are among the hedge funds with huge JPM positions (check out Andreas Halvorsen’s top holdings).
8. MEDTRONIC INC (MDT): Medtronic provides device-based medical therapies worldwide. MDT recently traded at $33.38 and has a 2.91% dividend yield. MDT gained 2.64% during the past 12 months. The stock has a market cap of $35.4 billion and P/E ratio of 11.63. Paulson had $188 million invested in MDT shares.
9. POPULAR INC (BPOP): BPOP recently traded at $1.79 and lost 36.52% during the past 12 months. The stock has a market cap of $1.8 billion and P/E ratio of 4.59. Paulson had $185 million invested in BPOP shares.
10. VEECO INSTRS INC DEL (VECO): VECO recently traded at $31.43 and lost 5.81% during the past 12 months. The stock has a market cap of $1.3 billion and P/E ratio of 5.11. Paulson had $145 million invested in VECO shares. Chuck Royce’s Royce & Associates also had $196 million invested in VECO. (See Chuck Royce’s top holdings here).
11. NYSE EURONEXT (NYX): NYX recently traded at $25.67 and has a 4.67% dividend yield. NYX lost 9.77% during the past 12 months. The stock has a market cap of $6.7 billion and P/E ratio of 11.78. Paulson had $103 million invested in NYX shares. Richard Perry’s Perry Capital and Frank Brosens’ Taconic Capital initiated large positions in NYX during the second quarter. Each of them holds more than $80 million worth of NYX shares.
Market data was sourced from Finviz.
Disclosure: I am long C.