BOSTON ( TheStreet) -- Paulson & Co. founder John Paulson has endured a tumultuous year as his hedge fund has fallen more than 30%. The billionaire investor is seeking to rebound with new investments in companies including News Corp. ( NWSA) and Mosaic ( MOS).After earning a record amount -- $5 billion -- for a hedge-fund manager last year with the help of gold and bank stocks, Paulson is now slashing holdings in many of those investments as his fund's performance has badly lagged behind the broader market. Paulson's flagship Advantage Plus Fund has plummeted 31% this year, according to several media reports that cite investors in the fund.
|John Paulson (Paulson & Co.)|
10. RLJ Lodging Trust ( RLJ) Company Profile: RLJ Lodging invests primarily in premium-branded and compact full-service hotels. Paulson's Investment: The hedge fund bought 2.7 million shares of RLJ Lodging during the second quarter, a position valued at $47 million as of June 30. Share Price Performance: Since the stock's debut in May, RJL Lodging shares have plunged about 21%, with most of the decline coming in August as markets crumbled following the Standard & Poor's downgrade of U.S. debt. Since June 30, shares are down about 20%, meaning the position is probably underwater if Paulson is still a holder.
8. Grifols SA ( GRFS) Company Profile: Grifols makes plasma derivatives, IV therapy, enteral nutrition, diagnostic systems and medical materials. Paulson's Investment: The hedge fund bought 14 million shares of Grifols during the second quarter, ending with a market value of $107 million as of June 30. Share Price Performance: Grifols is another ugly stock chart for Paulson as well as fellow hedge-fund investor Steven Cohen. Shares are down nearly 6% since the stock's debut in early June. After notching a high of $8.50 in late July, the stock has plunged as low as $6.33 earlier this month.
6. Tenet Healthcare ( THC) Company Profile: Tenet Healthcare is a health-care-services company whose subsidiaries and affiliates mainly operates general hospitals and related health-care facilities. Paulson's Investment: Paulson & Co. purchased 20 million shares of the healthcare company, worth $124 million as of June 30. Share Price Performance: Tenet Healthcare has been a dog this year, tumbling 24% in 2011. If Paulson continues to hold a position in the stock, he is down 19% in the position since June 30.
4. Southern Union ( SUG) Company Profile: Southern Union processes, transports and stores natural gas in the U.S. Paulson's Investment: Paulson bought 4.5 million shares of Southern Union during the second quarter, which was worth $181 million as of June 30. Share Price Performance: Southern Union has been a breakout performer this year, rallying 73% in 2011. Since June 30, shares are up nearly 4%.
2. Savvis ( SVVS) Company Profile: Savvis provides cloud-infrastructure and hosted-IT services. Paulson's Investment: Paulson & Co. snatched up 5.7 million shares of Savvis during the second quarter, which carried a market value of $225 million at the time. Share Price Performance: Savvis was likely a winner for Paulson before the company was acquired in mid-July by CenturyLink ( CTL). Before the acquisition was completed, shares of Savvis were up 55% in 2011.