BOSTON ( TheStreet) -- Paulson & Co. founder John Paulson probably would like to forget the third quarter, given the huge losses his hedge fund amassed. Still, the billionaire investor is seeking to rebound from an atrocious performance with new investments in companies including Motorola Mobility ( MMI) and Nalco Holdings ( NLC).After earning a record $5 billion for a hedge fund manager last year with the help of gold and bank stocks, Paulson is now slashing some of those holdings. His flagship Advantage Plus Fund has plummeted 47% this year through September, according to several media reports that cite investors in the fund. Even Paulson's bet on gold has worked against him, with his gold fund down about 30% this year.
|John Paulson (Paulson & Co.)|
10. CVS Caremark ( CVS) Company Profile: CVS Caremark is a provider of prescriptions and related health-care services through its retail locations across the U.S. Paulson's Investment: Paulson & Co. grabbed 2.5 million shares of CVS in the third quarter. The position had a market value of $84 million as of Sept. 30. Share Price Performance: CVS shares have climbed 11% this year and have been a big winner since bottoming out in August following the debt ceiling debate and subsequent downgrade of the U.S. debt by Standard & Poor's. Since Paulson's stated ownership date of Sept. 30, CVS shares have rallied 15%.
8. Temple-Inland ( TIN) Company Profile: Temple-Inland manufactures containerboard and converts it into a complete line of corrugated packaging. International Paper ( IP) announced in September it will buy the company for nearly $4 billion. Paulson's Investment: Playing on the merger-arbitrage opportunity, Paulson picked up 3 million shares of Temple-Inland last quarter, which was worth $94 million as of Sept. 30. Share Price Performance: The takeover offer by International Paper has boosted Temple-Inland's share price by 50% this year. Since the deal was announced in early September, shares have ticked higher by only 2%.
6. Talisman Energy ( TLM) Company Profile: Talisman Energy is an oil and gas company with operation areas in North America, the North Sea and Southeast Asia. Paulson's Investment: Paulson bought 8.7 million shares of Talisman in the third quarter. His hedge fund's stake was worth $107 million as of Sept. 30. Share Price Performance: While shares of Talisman Energy are down more than 36% this year, Paulson may actually have a profit in this position depending on when his hedge fund purchased shares. Since Sept. 30, shares of the energy company are up 15%.
4. AMC Networks ( AMCX) Company Profile: AMC Networks owns and operates several popular and award-winning brands in cable television, such as AMC, IFC, Sundance Channel and WE tv. Paulson's Investment: Given Paulson's performance so far this year, it's no surprise that the hedge fund manager likes the company that produces the show The Walking Dead. Paulson & Co. owned 5 million shares of AMC Networks as of Sept. 30, a position that carried a market value of about $160 million. Share Price Performance: Shares of AMC Networks are down almost 9% since the company was spun off from Cablevision ( CVC) in July. Since Sept. 30, the stock is up nearly 14%.
2. Nalco Holding ( NLC) Company Profile: Nalco Holding provides water, energy, air and process technologies and services that deliver savings for customers and improve the environment. Its programs and services are used in water treatment applications. Paulson's Investment: Paulson, like Farallon Capital's Thomas Steyer, was a fan of Nalco in the third quarter. Paulson & Co. bought 9.2 million shares of the company, a stake worth $321 million as of Sept. 30. Share Price Performance: Shares of Nalco have rallied more than 20% in 2011, but most of that rally came after the company agreed to a merger with Ecolab ( ECL).