BOSTON (TheStreet) -- Paulson & Co. founder John Paulson earned a record amount for any hedge fund manager last year with the help of gold and bank stocks. Now he's counting on laptop and printer maker Hewlett-Packard (HPQ) and lumber and pulp company Weyerhaeuser (WY) for a repeat performance in 2011.John Paulson gained notoriety for his big bets on gold and financial shares such as Goldman Sachs ( GS) and Citigroup ( C), which netted him a personal profit of $5 billion in 2010, the largest one-year gain in investing history.
|John Paulson (Paulson & Co.)|
10. Rock-Tenn Co. ( RKT) Company Profile: Rock-Tenn is a maker of packaging products, recycled paperboard, containerboard, bleached paperboard and merchandising displays. Paulson's Investment: The hedge fund bought 1 million shares of Rock-Tenn during the first quarter, a position valued at $69 million as of March 31. Rock-Tenn shares have soared this year, surging more than 32%. In January, Rock-Tenn said it would acquire Smurfit-Stone Container ( SSCC), another holding of Paulson's fund, for $35 a share.
8. SL Green Realty ( SLG) Company Profile: SL Green Realty is a New York-based real estate investment trust. Paulson's Investment: The hedge fund bought 1.4 million shares of SL Green Realty during the first quarter, ending with a market value of $105 million as of March 31. SL Green shares are up 25% this year. In late April, the company said first-quarter funds from operations, or FFO, surged 68% from a year ago. At the same time, SL Green announced that it had acquired the remaining interest of Viacom's ( VIA.B) headquarters in Times Square, which is valued at more than $1.2 billion.
6. Family Dollar ( FDO) Company Profile: Family Dollar operates more than 6,600 general merchandise retail discount stores in 44 states. Paulson's Investment: Paulson & Co. purchased 3.5 million share of the discount retailer, worth $177 million as of March 31. Shares of Family Dollar are up 4.5% this year, as the company has been a takeover target of Nelson Peltz's hedge fund Trian Group. However, the company has thus far spurned Peltz's offer. In March, Family Dollar reported better-than-expected fourth-quarter earnings and raised the low end of its full-year outlook.
4. Alpha Natural Resources ( ANR) Company Profile: Alpha Natural Resources is a supplier and exporter of metallurgical coal for use in the steel-making process. The company is also a major supplier of thermal coal to electric utilities and manufacturing industries. Paulson's Investment: Paulson bought 12 million shares of Alpha Natural during the first quarter, which was worth $712 million as of March 31. Alpha Natural has been a loser for Paulson's fund so far, falling more than 20% this year. Shares slid earlier this month after the coal supplier's first-quarter earnings release disappointed investors.
2. Lubrizol ( LZ) Company Profile: Lubrizol is a specialty chemical company, producing additives, ingredients, resins and other compounds used in engine oils, specialty driveline lubricants, over-the-counter pharmaceutical products, performance coatings, medical products and compressor lubricants. Paulson's Investment: Paulson & Co. snatched up 6 million shares of Lubrizol during the first quarter, which carried a market value of $803 million as of March 31. Lubrizol's stock is up 25% this year, thanks to a takeover bid from Warren Buffett's Berkshire Hathaway ( BRK.B). Investments in Lubrizol would eventually force David Sokol, one of Buffett's leading lieutenants at Berkshire, to resign. Since then, Buffett has been criticized for first defending Sokol's investments in Lubrizol before condemning them more than a month later during Berkshire's annual meeting of shareholders.