John Paulson's Top 10 Financial Stocks

John Paulson Financial Stocks story updated from Jan. 20 with Capital One, SunTrust and Bank of America earnings results.

NEW YORK ( Stockpickr) -- As financial stocks such as Goldman Sachs ( GS) dominate headlines with their earnings reports, at Stockpickr we're taking a look at the holdings of John Paulson, whose hedge fund Paulson & Co. has made big bucks over the past couple of years betting on financial stocks.

At Stockpickr, we track the top 30 holdings of various mutual funds, hedge funds and super investors. Today, with recent financial stock earnings in mind, we're taking a look at Paulson's top 10 financial holdings.

Paulson, who comes in at No. 45 on Forbes' list of the world's billionaires, actually decreased the size of many of his financial holdings in the most recent reporting period, according to his most recent 13F filing with the SEC, which reflects holdings as of Sept. 30, 2010. In fact, he sold entirely out of Goldman Sachs. Nevertheless, his portfolio remains heavily weighted to financial stocks, by 34.2% as of the most recent period, according to GuruFocus.

Related: Top 10 Warren Buffett Dividend Stocks

10. JPMorgan

JPMorgan ( JPM) comprises 0.8% of Paulson's total portfolio as of Sept. 30. The fund's 5 million-share position in the stock is a 28.6% decrease from the previous period.

Stock Overview: JPMorgan Chase is a global financial services firm and banking institution in the U.S., with operations worldwide. JPMorgan, which has a market cap of 174.9 billion, has traded in a 52-week range of $35.16 to $48.20 and closed at $44.75 on Thursday. The stock has a short interest ratio of 1.2, and it yields 0.4%.

Analyst Ratings: Of 24 analysts covering the stock, 21 rate it a buy, and three rate it a hold. TheStreet Ratings has a B buy rating on the stock.

Earnings: JPMorgan beat earnings expectations handily in its fourth quarter. On Jan. 14, it reported earnings of $1.12 a share, or $4.8 billion, up 47% from the year-ago quarter and above expectations for 99 cents a share. Revenue also improved, by 13% to $26 billion, compared with expectations for $24.4 billion.

More on JPMorgan: Other holders of JPMorgan include Steve Mandel's Lone Pine Capital, which has 3.9% exposure to the stock, and Bill Miller's Legg Mason Capital, at 1.7% of the total portfolio. According to Jake Lynch, JPMorgan is one of 10 Dow stocks likely to boost dividends in 2011, and Jim Cramer recently listed it as one of several big banks with long legs.

9. Popular

With 67 million shares, Paulson's portfolio is 0.9% weighted toward Popular ( BPOP). The number of shares held increased by 0.5% from the previous period.

Stock Overview: Popular is a publicly owned bank holding company that offers retail and commercial banking services through its main banking subsidiary, Banco Popular de Puerto Rico. The stock has traded in a 52-week range of $1.70 and $4.23 and closed at $3.13 on Thursday. Popular, which has a market cap of $3.3 billion, has a short interest ratio of 0.6.

Analyst Ratings: Of six analysts covering the stock, five rate it a buy, and one rates it a hold. TheStreet Ratings has a D+ sell rating on the stock.

Earnings Estimates: Popular is set to report earnings on Jan. 31 for the quarter ended December 2010. Analysts expect the company to report a loss of a penny a share in the most recent quarter, compared with a 33-cent loss in the year-ago quarter, and earnings of 15 cents a share for the full year, compared with a loss of $1.34 in the previous year.

More on Popular: Other holders of Popular include Bridger Management. TheStreet, using data supplied by SNL Financial, recognized Popular as one of bank stock winners of 2010.

8. CB Richard Ellis Group

CB Richard Ellis Group ( CBG) comprises 1.1% of Paulson's total portfolio, with a position size of 13.5 million shares as of Sept. 30. The fund's position in the stock was unchanged from the previous period.

Stock Overview: CB Richard Ellis Group is a commercial real estate services firm, which offers a range of services to occupiers, owners, lenders and investors in office, retail, industrial, multi-family and other commercial real estate. The stock has traded in a 52-week range of $12.05 to $22.58, which it hit on Jan. 19, and closed at $22.07 on Thursday. With a market cap of $7.2 billion, CB Richard Ellis has a 3.9 short interest ratio.

Analyst Ratings: Of six analysts covering the stock, three rate it a buy, and three rate it a hold. TheStreet Ratings has a C hold rating on the stock.

Earnings Estimates: CB Richard Ellis is slated to report earnings on Feb. 4 for the most-recent quarter. Analysts expect the company to report a profit of 32 cents a share in the most recent quarter, compared with 28 cents in the year-ago quarter, and 70 cents a share for the full year, compared with 39 cents in the previous year.

More on CB Richard Ellis: Other holders of CB Richard Ellis include Ken Heebner's Capital Growth Management, and the stock is the top holding of Blum Capital Partners, at 31% of the total portfolio. Barclays named CB Richard Ellis one of its 30 best stock picks for 2011.

7. American Capital

Paulson owned 43.7 million shares of American Capital ( ACAS) as of Sept. 30, comprising 1.1% of his total portfolio. The position was unchanged from the previous period, when Paulson initiated the position.

Stock Overview: American Capital operates as a publicly traded private equity firm and global asset manager and invests in private equity, private debt, private real estate investments, early- and late-stage technology investments and more. The stock, has traded in a 52-week range of $3.14 to $8.58, which it hit on Jan. 18, and closed at $8.04 on Thursday. With a market cap of $2.9 billion, American Capital has a 5.2 short interest ratio.

Analyst Ratings: Of 12 analysts covering the stock, five rate it a buy, and seven rate it a hold.

Earnings Estimates: Analysts expect American Capital to report earnings on Feb. 21 of 17 cents a share in the most-recent quarter, compared with 7 cents a share in the year-ago quarter, and 60 cents a share for the full year, compared with 56 cents in the previous year.

More on American Capital: Other holders of American Capital include Zebra Capital, at 0.8% of the total portfolio.

6. Wells Fargo

Wells Fargo ( WFC) comprises 1.7% of Paulson's portfolio, with a 15.5 million share position. Paulson decreased the number of shares held by 11.4% from the previous period.

Stock Overview: Wells Fargo provides financial services through subsidiaries engaged in various businesses, including wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance and commercial finance. The stock, has traded in a 52-week range of $23.02 to $34.25 and closed at $31.89 on Thursday. With a market cap of $170.5 billion, Wells Fargo has a 1.8 short interest ratio, and it yields 0.6%.

Analyst Ratings: Of 26 analysts covering the stock, 17 rate it a buy, six rate it a hold, and three rate it a sell. TheStreet Ratings has a B- buy rating on the stock, earning it a spot on the Top-Rated Diversified Financial Services Stocks list.

Earnings: Wells Fargo reported quarterly earnings in line with analyst expectations on Wednesday. The bank earned 61 cents a share, or $3.4 billion, in the quarter ended Dec. 31, up 21% from the same quarter a year ago, on revenue of $21.5 billion, a decrease from the year-ago quarter but an increase from the previous quarter.

More on Wells Fargo: Wells Fargo is also the second-largest holding of Warren Buffett, comprising 17.4% of the total portfolio. Other holders include Mohnish Pabrai and Tweedy Browne. Philip van Doorn recently identified Wells Fargo as one of 10 Western bank stocks for the long term, and Sandler O'Neill included it as one of 5 financials that fit a rosy 2011.

5. Capital One Financial

Paulson & Co. owns 15 million shares of Capital One ( COF) as of Sept. 30, an 11.8% decrease from the previous period. The stock comprises 2.6% of the fund's total portfolio.

Stock Overview: Capital One Financial is a financial services company whose banking and nonbanking subsidiaries market a variety of financial products and services. The stock, has traded in a 52-week range of $34.03 to $49.06 and closed at $47.25 on Thursday. It hit its most-recent 52-week high on Tuesday. Capital One, which has a market cap of $22.1 billion, has a 4.8 short interest ratio and yields 0.4%.

Analyst Ratings: Of 22 analysts covering the stock, seven rate it a buy, 13 rate it a hold, and two rate it a sell. TheStreet Ratings has a B- buy rating on Capital One, earning it a spot on the Top-Rated Consumer Finance Stocks list.

Earnings Estimates: Capital One reported quarterly earnings after the bell on Jan. 21. It earned $1.52 per share, or $697 million, compared with 83 cents a share in the year-ago quarter and beating expectations for $1.40 a share.

More on Capital One: Other holders of Capital One include ESL Investments' Eddie Lampert, with 3.3% exposure, and David Tepper's Appaloosa Management. Capital One showed up on a recent list of stocks with big insider selling after insiders at the company dumped $5.6 million worth of stock.

4. SunTrust Banks

Paulson's seventh-largest holding, SunTrust Banks ( STI), is his fourth-largest financial holding, at 3.3% of the total portfolio. As of Sept. 30, Paulson held 29.4 million shares, a 3.3% decrease from the previous period.

Stock Overview: SunTrust Banks is a financial services holding company whose businesses provide a range of financial services to consumer and corporate clients. It offers commercial and retail banking products at its roughly 1,700 branches. The stock, has traded in a 52-week range of $21.44 to $32.02 and closed at $27.87 on Thursday. With a market cap of $14.6 billion, SunTrust has a 3.1 short interest ratio, and it yields 0.1%.

Analyst Ratings: Of 31 analysts covering the stock, eight rate it a buy, 17 rate it a hold, and six rate it a sell. TheStreet Ratings has a C hold rating on the stock.

Earnings Estimates: SunTrust beat expectations in the fourth quarter, earning 23 cents a share, or $114 million, up from a loss of 64 cents a share in the previous quarter and above estimates for 7 cents a share.

More on SunTrust: Other holders of SunTrust include Appaloosa Management, at 3% of the total portfolio. Last month, Maria Woehr highlighted SunTrust as one of 10 possible regional bank takeover targets.

3. Hartford Financial

Hartford Financial ( HIG) is Paulson & Co.'s fifth largest holding, at 4.4% of the total portfolio and 44 million shares. His position in the stock was unchaged from the previous period.

Stock Overview: Hartford Financial Services Group is an insurance and financial services company providing investment products, individual life, group life and group disability insurance products and property and casualty insurance products in the U.S. .The stock, has traded in a 52-week range of $18.81 to $30.46 and closed at $27.40 on Thursday. With a market cap of $12.7 billion, Hartford has a 3.2 short interest ratio, and it yields 0.7%.

Analyst Ratings: Of 18 analysts covering the stock, seven rate it a buy, and 11 rate it a hold. TheStreet Ratings has a C+ hold rating on the stock.

Earnings Estimates: Hartford is slated to report earnings on Feb. 2. Analysts expect it to 93 cents a share in the most recent quarter, $1.85 in the previous year.

More on Hartford Financial: Other holders of Hartford include NWQ Investment, at 2.1% of the total portfolio, and David Tepper's Appaloosa Management. Hartford was one of Barclays' 30 best stock picks for 2011.

2. Citigroup

Paulson owns 424 million shares of his fourth-largest holding, Citigroup ( C), as of Sept. 30, a 16.3% decrease from the previous period. The stock comprises 7.2% of the total portfolio.

Stock Overview: Citigroup is engaged as a financial services holding company, whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services. The stock, has traded in a 52-week range of $3.11 to $5.15 and closed at $4.80 on Thursday. With a market cap of $139.4 billion, Citi has a short interest ratio of 0.8.

Analyst Ratings: Of 20 analysts covering the stock, 10 rate it a buy, eight rate it a hold, and two rate it a sell. TheStreet Ratings has a D sell rating on the stock.

Earnings: On Jan. 18, Citi missed analyst expectations for its fourth quarter, reporting earnings of 4 cents a share, or $1.3 billion, compared with expectations for 8 cents a share. In the year-ago quarter, Citi had reported a loss of 33 cents a share. Revenue of $18.4 also missed expectations for $20.5 billion.

More on Citigroup: Other holders of Citigroup include Bill Ackman's Pershing Square Capital, at 14.1% of the total portfolio, and Lee Ainslie's Maverick Capital, at 3.6% of the total portfolio. Jim Cramer recently called Citi one of his favorite bank stocks, and it was one of the top stocks picks under $5 for 2011, a list of stocks with the most buy ratings from analysts.

1. Bank of America

As of Sept. 30, Paulson & Co. holds 137.8 million shares of Bank of America ( BAC), a 17.9% decrease in shares from the previous period. Bank of America is Paulson's top financial holding, at 7.9% of his total portfolio, and his third-largest holding overall, after SPDR Gold Shares ( GLD) at 17.6% and AngloGold ( AU) at 8.3%.

Stock Overview: Bank of America is a bank holding and a financial holding company, which through its subsidiaries, provides banking and nonbanking financial services and products throughout the U.S. and in selected international markets. Bank of America, which has a market cap of $151.3 billion, has traded in a 52-week range of $10.91 to $19.86 and closed at $14.54 on Thursday. The stock has a short interest ratio of 0.6, and it yields 0.3%.

Analyst Ratings: Of 25 analysts covering the stock, 16 rate it a buy, and nine rate it a hold. TheStreet Ratings has a C- hold rating on the stock.

Earnings Estimates: Bank of America reported a loss of 16 cents a share, or $1.2 billion, in the fourth quarter, compared with a loss of 60 cents a share in the year-ago quarter and expectations for earnings of 14 cents a share.

More on Bank of America: Other holders of Bank of America include Warren Buffett, Appaloosa Management and Bruce Berkowitz's Fairholme Capital. According to Jake Lynch, it's one of the 10 cheapest Dow dividend stocks, as well as one of 10 Dow stocks likely to boost dividends in 2011.

To view these stocks in action, visit the Top 10 Financial Stocks Owned by John Paulson portfolio on Stockpickr.

-- Written by Rebecca Corvino in New York.

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Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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