BOSTON ( TheStreet) -- Hedge fund manager John Paulson earned a record profit last year for his prescient bets on banks. A sharp decline in at least one of those financial stocks, though, appeared to be too much for the $38 billion Paulson & Co. founder as he scrambles to reverse losses in his flagship fund.
Paulson sold a "substantial portion" of his fund's stake in Bank of America (BAC - Get Report) over the past two months without giving exact figures, according to a report Thursday by CNBC, citing people familiar with its position. As of March 31, Paulson owned 123.6 million shares of Bank of America, making it his sixth-largest position with a market value of $1.65 billion.
|John Paulson (Paulson & Co.)|
While Paulson benefited substantially on his bank-stock bets following the market's rebound from the March 2009 low, he has been paring positions in financial companies. In the first quarter, Paulson sold 80,000 shares of Citigroup (C), 2 million shares of CIT Group (CIT) and 226,000 shares of Bank of America.
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