Paulson & Co Third Quarter Stock Holding

The hedge fund manager of subprime fame earning US$4 billion during the financial crisis for his accurate bet against subprime mortgages – has performed poorly lately. Recent news suggests Paulson & Co have been inundated with redeeming calls from frustrated investors . Institutional Investor’s Alpha reports that its Paulson Gold fund is down close to four percent for the year and Paulson Advantage fund is performing extremely poorly with a negative 14 percent return in 2012. This comes on the backdrop of the S&P 500 rising 16 percent for the first nine months of the year.

In the third quarter, Paulson & Co initiated eight new positions worth a total of US$840 million. Amongst the largest are 23.8 million shares of Metro PCS [PCS] for US$278 million, 6.1 million shares of Canadian takeover target Nexen Inc [NXY] for US$153 million and 1.37 million shares of Shire PLC [SHPG] for US$122 million. Here is a chart of how they are doing against the S&P 500:

Furthermore, the hedge fund also bought an additional 8.5 million shares in Life Technologies [LIFE] to take its total stake in the company to 13.5 million shares. It also boosted its stake in Grifols SA [GRFS] by 5.2 million shares to a total of 16.4 million shares; and doubled its stake in Equinix Inc [EQIX] by 1.1 million shares to a total of 2.1 million shares. Here is a chart of how they are doing against the S&P 500:

In contrast, John Paulson further cut his stake in Hartford Financial Services [HIG] — selling 11.8 million shares in the third quarter with 19 million shares remaining in the insurance and financial services company. The hedge fund also eliminated its entire stake in Goodrich Corp [GR], Baxter International [BAX], JP Morgan Chase [JPM] and Quest Software [QSFT].

Here is a list of the top ten positions Paulson & Co holds as of the latest quarter, sorted by market value:

1. SPDR Gold Trust (ETF) ( GLD, Earnings, Analysts, Financials): The Trust holds gold and issues shares (Shares) (in minimum blocks of 100,000 Shares, also referred to as Baskets) in exchange for deposits of gold and distributes gold in connection with redemption of Baskets. No change in position with total holding of 21.8 million shares

 

2. AngloGold Ashanti Ltd. ( AU, Earnings, Analysts, Financials): Engages in the exploration and production of gold. Market cap at $11.59B, most recent closing price at $30.24. Sold 4.4 million shares with remaining holding of 28.4 million shares

 

3. Delphi Automotive PLC ( DLPH, Earnings, Analysts, Financials): Market cap at $10.62B, most recent closing price at $33.43. Sold 7.2 million shares with remaining holding of 25 million shares

 

 

4. Life Technologies Corporation ( LIFE, Earnings, Analysts, Financials): Operates as a life sciences company with a focus on improving the human condition worldwide. Market cap at $8.42B, most recent closing price at $48.95. Acquired 8.5 million shares to have a total holding of 13.5 million shares

 

5. Mylan, Inc. ( MYL, Earnings, Analysts, Financials): Engages in the development, manufacture, marketing, licensing, and distribution of generic and branded generic pharmaceuticals, specialty pharmaceuticals, and active pharmaceutical ingredients (APIs) worldwide. Market cap at $11.08B, most recent closing price at $27.20. No change in position with total holding of 24.5 million shares

 

6. Equinix, Inc. ( EQIX, Earnings, Analysts, Financials): Provides data center services for the protection and connection of information assets to enterprises, content providers, financial companies, network service providers, and cloud and IT services companies. Market cap at $8.88B, most recent closing price at $182.69. Acquired 1.1 million shares with total holding of 2.1 million shares

 

7. MGM Resorts International ( MGM, Earnings, Analysts, Financials): Operates casino resorts in the United States. Market cap at $4.82B, most recent closing price at $9.86. Sold 3,600 shares for a remaining holding of 37.6 million shares

 

8. Hartford Financial Services Group Inc. ( HIG, Earnings, Analysts, Financials): Provides insurance and financial services in the United States and internationally. Market cap at $9.11B, most recent closing price at $20.89. Sold 11.8 million shares for a remaining holding of 19.5 million shares

 

9. Grifols SA, Barcelona ( GRFS, Earnings, Analysts, Financials): Acquired additional 5.2 million shares for a remaining holding of 16.4 million shares

 

 

10. MetroPCS Communications, Inc. ( PCS, Earnings, Analysts, Financials): A wireless telecommunications carrier, together with its subsidiaries, provides wireless broadband mobile services in the United States. Market cap at $3.84B, most recent closing price at $10.54. Initiated new position in the company with 23.8 million shares

 

 

 

Written by SiHien Goh

 

 

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