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John Paulson of Paulson & Co is one of America's most notorious hedge fund managers. He gained fame after betting against subprime mortgages and personally making over $5 billiion in 2010. However 2011 has not been kind to Paulson with both of his hedge funds down more than 20% through August.

Investors are reportedly anticipating Paulson's clients withdrawing from his funds, which would force Paulson & Co to sell holdings in order to meet withdrawal requests. Selling pressure by Paulson could adversely affect the share price of the underlying holdings, so investors should take of his largest positions.

Paulson did quite well by making an early investment in Gold via (GLD), but as we have seen in recent weeks GLD has been hit hard. Given that it is his largest holding and most likely one of his more profitable long-term positions, it is a logical sell candidate to meet any potential liquidity demands in his two hedge funds. While I think that gold mining stocks still offer some attractive opportunities versus the underlying price of gold, we may see lower gold prices in the short term. This would not bode well for Paulson, especially given that his second largest holding is also in the preciousl metal sector, gold miner Anglogold Ashanti (AU).

Paulson has also been hurt by his heavy exposure to financials, with a 48% exposure to the financial sector as of 6/30/11. If the European sovereign debt situation further drags down financial stocks in the coming weeks or months, this could further hurt Paulson's performance.

Using AlphaClone, I generated a list of Paulson & Co's top 50 holdings. I will be watching this closely in the coming weeks for any extra-ordinary selling pressure:



SHARE PRICE
MARKET VALUE in thousands
SHARES HELD in thousands

Ticker Last Close 6/30/11 Close Total % Change Total % Portfolio
SPDR Gold GLD 156.22 146 4599032 4.4% 31500 16.3%
Anglogold Ashanti L... AU 41.03 41.97 1680880 -14.6% 39935 6.0%
Citigroup Inc C 25.92 41.63 1395148 -23.5% 33505 4.9%
Anadarko Petroleum ... APC 67.68 76.66 1282828 -26.2% 16712 4.5%
Transocean Ltd RIG 50.49 63.58 1214374 -36.3% 18810 4.3%
Capital One Financial COF 40.94 51.61 1090237 16.6% 21100 3.9%
Hartford Financial
HIG 15.82 26.23 1068472 -9.7% 40518 3.8%
Wells Fargo & Co WFC 24.45 27.94 942816 45.1% 33600 3.3%
Hewlett-Packard Co HPQ 23.19 36.21 855400 -16.5% 23500 3.0%
Suntrust Bank Inc STI 18.03 25.73 829065 -16.2% 32134 2.9%
Lubrizol Corp (... LZ 134.97 133.91 733160 -8.8% 5460 2.6%
Bank of America Corp BAC 6.16 10.95 662475 -59.8% 60445 2.3%
Weyerhaeuser Co WY 15.95 21.67 655800 -15.9% 30000 2.3%
Xl Group PLC XL 18.84 21.86 620495 -14.2% 28230 2.2%
MGM Resorts Int MGM 10.27 13.21 550857 -4.4% 41700 2.0%
Comcast Corp Class A CMCSA 22 25.23 514402 -48.0% 20300 1.8%
Baxter International BAX 55.66 59.35 456629 6.2% 7650 1.6%
American Capital ACAS 7.08 9.93 434189 0.3% 43725 1.5%
Life Tech Corp LIFE 37.73 52.07 391566 New 7520 1.4%
Mylan Inc MYL 17.71 24.67 368570 -39.6% 14940 1.3%
Blackrock Inc BLK 148.55 190.23 360603 -10.3% 1880 1.3%
Gold Field Ltd GFI 15.35 14.47 360373 -20.8% 24700 1.3%
CB Richard Ellis Gr... CBG 13.93 25.11 338985 -6.0% 13500 1.2%
Ralcorp Holdings Inc RAH 76 86.58 319653 1067.8% 3692 1.1%
Rock-Tenn Co Class A RKT 50.15 66.1 294401 324.5% 4438 1.0%
Savvis Cp SVVS 39.5 39.53 225321 New 5700 0.8%
Lear Corporation LEA 42.53 53.34 224636 9.4% 4200 0.8%
Whirlpool WHR 50.41 80.61 203300 -19.3% 2500 0.7%
Teva Pharm Ind Inc TEVA 36.4 47.95 201627 -9.7% 4181 0.7%
Genon Energy GEN 2.83 3.86 199201 1.3% 51606 0.7%
CNO Fnancial Grp CNO 5.34 7.91 193439 5.3% 24455 0.7%
JP Morgan Chase & Co JPM 30.47 40.69 192418 -16.5% 4700 0.7%
Medtronic Inc MDT 33.74 38.28 187834 -48.7% 4875 0.7%
Novagold Resources Inc NG 6.74 9.2 185673 -29.1% 20182 0.7%
Popular Inc BPOP 1.46 2.76 184920 -5.2% 67000 0.7%
News Corp Ltd NWS 15.92 17.59 184080 New 10400 0.7%
Southern Union Co SUG 40.65 40.15 181880 New 4530 0.6%
Family Dollar Stores FDO 53.31 52.37 181595 2.4% 3455 0.6%
Liberty Interactive LINTA 15.71 16.77 167700 4.5% 10000 0.6%
Telzuit Medical TZMT 0.01 0.01 162823 -29.2% 29390 0.6%
Alpha Natural Resou... ANR 18.92 45.44 154416 -78.3% 3398 0.5%
Mosaic Company MOS 57.19 67.68 152393 New 2250 0.5%
Anglogold Ashanti Ltd AU 47.7 49.15 149670 -7.3% 3000 0.5%
Scripps Networks Int SNI 39.01 48.76 146640 -2.4% 3000 0.5%
Veeco Instruments VECO 26.94 48.41 145230 -4.8% 3000 0.5%
Tenet Healthcare Corp THC 4.03 6.24 124800 New 20000 0.4%
The Howard Hughs HHC 42.64 65.04 120324 -22.4% 1850 0.4%
Regions Financial Cp RF 3.43 6.18 119931 -14.6% 19344 0.4%
SL Green Realty Corp SLG 60.7 82.87 116018 10.2% 1400 0.4%


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

Source: Monitoring John Paulson's Top Holdings