Hedge Fund Analysis on John Paulson's Paulson & Co (2010 Q1)

I have posted John Paulson's Q1 performance before (click here to see), however, this analysis is dedicated to give a more detailed analysis of the performance of this New York based hedge fund. Please note that most of the Data comes from Alphaclone, unless otherwise indicated.

Total Market Value (as of the end of March): $21.16 Billion

Top Sectors: 59% Financials

13% Basic Materials

11% Services

6% Energy

5% Healthcare

Top 10 Holdings

1. SPDR Gold Trust (GLD): 16.2%

2. Bank of America (BAC): 14.2%

3. Citigroup (C): 9.7%

4. Anglogold Ashanti (AU): 7.8%

5. Comcast (CMCSA) 3.9%

6. Suntrust Banks (STI): 3.8%

7. Boston Scientific (BSX): 3.4%

8. Capital One (COF): 3.3%

9. XTO Energy (XTO): 2.9%

10. Kinross Gold (KGC): 2.7%

Recent Trades

5/21/10
buy
XTO Energy Inc [XTO]
$42.95
2/19/10
buy
Capital One Financial [COF]
$37.75
2/19/10
buy
Comcast Corp Class A [CMCSA]
$15.92
2/19/10
buy
Suntrust Bank Inc [STI]
$23.01
2/19/10
sell
Liberty Med A [LSTZA]
$46.98
2/19/10
sell
Sun Microsystems [JAVA]
$ 9.49

We can see from Paulson's portfolio that he held a large position in Gold in the first quarter, which indicates he was still very bearish about the market. As seen from the performance of the DJIA in May, Paulson was absolutely right. Paulson also showed interest in financial groups such as Citi Group, Bank of America, and JP Morgan chase. Unfortunately, these stocks weren't performing very well in May. My guess is that Paulson still holds them in the second quarter and therefore suffered some loss in May.

Paulson is famous for his bet against the CDO market in 2007, to read more about his story, you can refer to The Greatest Trade Ever, written by Wall Street Journal columnist Greg Zuckerman.

Taken from the Alphaclone
"Paulson & Co. (PCI) is an employee owned hedge fund sponsor. Founded by John Alfred Paulson, the firm primarily provides its services to pooled investment vehicles. The firm invests in the public equity markets across the globe and employs strategies such as merger arbitrage, long/short, and event-driven strategy to make its investments. It employs fundamental analysis to make its investments. Paulson & Co. was founded in July 1994 and is based in New York, New York."