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) 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.
>To contact the writer of this article, click here: Robert Holmes. >To follow Robert Holmes on Twitter, go to http://twitter.com/RobTheStreet. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV