Property and Casualty reinsurer Transatlantic Holdings ( TRH) saw its share of hedge fund action. John Paulson's Paulson & Co bought 2 million shares of the firm. Westchester Capital and AQR Capital Management were among the other big buyers during the third quarter. Transatlantic has been courted by a number of suitors in the reinsurance space, which has likely attracted merger-arbitrageurs. After calling off its merger with Allied World ( AWH) and rebuffing a unit of Warren Buffett's Berkshire Hathaway , the firm recently rejected an offer from Validus, saying the deal undervalued the company. Shares of Transatlantic have gained 4% in 2011. Only one analyst has a buy recommendation on the stock. Eight other analysts preferred to stay on the fence with a hold rating.