Legendary Investor John Paulson Loves These Stocks

John Paulson

s 13F filing for the quarter ending December 31st, 2010 values his fund’s common equity holdings at $27,693,669,000. 

As of March 15, 2011, this same portfolio is worth $27,459,509,704, a decline of 0.85% as compared to the S&P 500′s gain of 1.93%.  Paulson has underperformed the market by about 2%.

The average size of his portfolio’s position at year-end was $329,686,536, its median was $118,904,000, and its largest position, in the SPDR Gold Trust (NYSE:GLD), was $4.3 billion.

Its skew of at 4.3, and kurtosis of 23, are more extreme than the market as a whole, and so the portfolio appears rather risky. 

Considering the risk in the portfolio, Paulson has underperformed.  Presumably one should only take excess risk if one is certain to generate a superior return.

Following is a table detailing Paulson & Co’s common equity holdings at the end of 2010. 

Note that this does not include any warrants, preferred shares, or other financial securities that Paulson & Co. may use to hedge its exposure to the market.

Company Exchange:Ticker $ Value at December 31, 2010 Number shares Percentage of Portfolio $ Value at March 15th, 2011 Percentage Return Abitibibowater Inc (NYSE:ABH) 117,057,000 4,959,580 0.42% 133,412,702 13.97% Airgas Inc (NYSE:ARG) 31,230,000 500,000 0.11% 31,130,000 -0.32% Alcon Inc (NYSE:ACL) 408,500,000 2,500,000 1.48% 411,825,000 0.81% Alberto Culver Co (NYSE:ACV) 18,520,000 500,000 0.07% 18,605,000 0.46% American Cap Ltd (NASDAQ:ACAS) 330,561,000 43,725,000 1.19% 382,593,750 15.74% Anadarko Pete Corp (NYSE:APC) 1,620,514,000 21,277,761 5.85% 1,614,343,727 -0.38% Anglogold Ashanti Ltd (NYSE:AU) 2,015,941,000 40,949,437 7.28% 1,886,131,068 -6.44% Apollo Group Inc (NASDAQ:APOL) 53,304,000 1,349,800 0.19% 55,625,258 4.35% Ashford Hospitality Tr (NYSE:AHT) 28,950,000 3,000,000 0.10% 30,000,000 3.63% Bank Of America Corp (NYSE:BAC) 1,652,305,000 123,860,951 5.97% 1,729,098,876 4.65% Baxter Intl Inc (NYSE:BAX) 253,100,000 5,000,000 0.91% 256,200,000 1.22% Beazer Homes Usa Inc (NYSE:BZH) 31,262,000 5,800,000 0.11% 25,636,000 -18.00% Barrick Gold Corp (NYSE:ABX) 21,272,000 400,000 0.08% 19,692,000 -7.43% Blackrock Inc (NYSE:BLK) 381,160,000 2,000,000 1.38% 371,400,000 -2.56% Bmc Software Inc (NASDAQ:BMC) 75,424,000 1,600,000 0.27% 77,168,000 2.31% Boise Inc (NYSE:BZ) 8,391,000 1,058,100 0.03% 9,046,755 7.81% Boston Scientific Corp (NYSE:BSX) 189,250,000 25,000,000 0.68% 177,000,000 -6.47% Brocade Communication (NASDAQ:BRCD) 17,986,000 3,400,000 0.06% 20,162,000 12.10% Bucyrus Intl Inc New (NASDAQ:BUCY) 89,400,000 1,000,000 0.32% 90,890,000 1.67% Comcast Corp (NASDAQ:CMCSA) 878,800,000 40,000,000 3.17% 966,400,000 9.97% Capital One Finl Corp (NYSE:COF) 766,080,000 18,000,000 2.77% 919,800,000 20.07% Cb Richard Ellis Group (NYSE:CBG) 276,480,000 13,500,000 1.00% 350,325,000 26.71% Cheniere Energy Inc (AMEX:CQP) 15,589,000 2,824,085 0.06% 49,280,283 216.12% Chemtura Corp (NYSE:CHMT) 2,744,000 171,734 0.01% 2,813,003 2.51% Cit Group Inc (NYSE:CIT) 157,367,000 3,341,134 0.57% 142,699,833 -9.32% Citigroup Inc (NYSE:C) 1,955,976,000 413,525,641 7.06% 1,836,053,846 -6.13% Commscope Inc (NYSE:CTV) 280,980,000 9,000,000 1.01% 84,960,000 -69.76% Cno Finl Group Inc (NYSE:CNO) 165,805,000 24,455,000 0.60% 169,228,600 2.06% Del Monte Foods Co (NYSE:DLM) 360,020,000 19,150,000 1.30% 0 -100.00% Dex One Corp (NYSE:DEXO) 27,426,000 3,676,394 0.10% 15,624,675 -43.03% Emergency Medical Svc (NYSE:EMS) 47,920,000 741,680 0.17% 46,955,761 -2.01% Felcor Lodging Tr Inc (NYSE:FCH) 31,680,000 4,500,000 0.11% 29,070,000 -8.24% First Horizon Natl Corp (NYSE:FHN) 90,433,000 7,676,827 0.33% 85,519,853 -5.43% Genzyme Corp (NASDAQ:GENZ) 487,008,000 6,840,000 1.76% 517,993,200 6.36% Genon Energy Inc (NYSE:GEN) 196,620,000 51,606,409 0.71% 197,136,482 0.26% Gold Fields Ltd New (NYSE:GFI) 436,027,000 24,050,000 1.57% 409,571,500 -6.07% Hartford Finl Svcs Grp (NYSE:HIG) 1,164,254,000 43,950,701 4.20% 1,125,137,946 -3.36% Howard Hughes Corp (NYSE:HHC) 119,408,000 2,194,201 0.43% 146,375,149 22.58% Intl Paper Co (NYSE:IP) 69,688,000 2,558,300 0.25% 65,927,391 -5.40% International Tower Hill (AMEX:THM) 50,935,000 5,000,000 0.18% 42,700,000 -16.17% Iamgold Corp (NYSE:IAG) 48,060,000 2,700,000 0.17% 55,404,000 15.28% Jpmorgan Chase & Co (NYSE:JPM) 212,100,000 5,000,000 0.77% 223,050,000 5.16% King Pharmaceuticals (NYSE:KG) 281,000,000 20,000,000 1.01% 3,200,000 -98.86% Kinross Gold Corp (NYSE:KGC) 369,318,000 19,478,794 1.33% 288,091,363 -21.99% Lear Corp (NYSE:LEA) 207,310,000 2,100,188 0.75% 210,333,828 1.46% Liberty Media Corp (NASDAQ:LINTA) 157,700,000 10,000,000 0.57% 155,800,000 -1.20% Marshall & Ilsley Corp (NYSE:MI) 96,880,000 14,000,000 0.35% 107,100,000 10.55% Martek Biosciences Corp (NASDAQ:MATK) 93,900,000 3,000,000 0.34% 94,470,000 0.61% Mcclatchy Co (NYSE:MNI) 27,553,000 5,900,000 0.10% 20,532,000 -25.48% Medtronic Inc (NYSE:MDT) 338,739,000 9,132,900 1.22% 340,748,499 0.59% Mgm Resorts Intl (NYSE:MGM) 650,430,000 43,800,000 2.35% 555,822,000 -14.55% Mylan Inc (NASDAQ:MYL) 633,900,000 30,000,000 2.29% 654,000,000 3.17% Netapp Inc (NASDAQ:NTAP) 53,311,000 970,000 0.19% 45,124,400 -15.36% Northern Tr Corp (NASDAQ:NTRS) 55,410,000 1,000,000 0.20% 49,780,000 -10.16% Novagold Res Inc (AMEX:NG) 287,995,000 20,181,818 1.04% 253,685,452 -11.91% Novell Inc (NASDAQ:NVLS) 118,400,000 20,000,000 0.43% 720,600,000 508.61% Pfizer Inc (NYSE:PFE) 399,228,000 22,800,000 1.44% 450,528,000 12.85% Pmi Group Inc (NYSE:PMI) 16,500,000 5,000,000 0.06% 13,650,000 -17.27% Popular Inc (NASDAQ:BPOP) 210,380,000 67,000,000 0.76% 201,000,000 -4.46% Quad / Graphics Inc (NYSE:QUAD) 44,437,000 1,077,000 0.16% 45,772,500 3.01% Quest Software Inc (NASDAQ:QSFT) 36,062,000 1,300,000 0.13% 32,591,000 -9.63% Ralcorp Hldgs Inc New (NYSE:RAH) 19,425,000 298,800 0.07% 19,568,412 0.74% Randgold Res Ltd (NASDAQ:GOLD) 40,753,000 495,000 0.15% 35,872,650 -11.98% Regions Financial Corp (NYSE:RF) 135,406,000 19,343,700 0.49% 141,789,321 4.71% Seagate Technology Plc (NASDAQ:STX) 7,515,000 500,000 0.03% 6,505,000 -13.44% Spdr Gold Trust (NYSE:GLD) 4,369,680,000 31,500,000 15.78% 4,292,505,000 -1.77% St Jude Med Inc (NYSE:STJ) 7,268,000 170,000 0.03% 8,161,700 12.30% State Str Corp (NYSE:STT) 92,680,000 2,000,000 0.33% 85,460,000 -7.79% Strategic Hotel & Resrt (NYSE:BEE) 42,320,000 8,000,000 0.15% 48,000,000 13.42% Sunstone Hotel Invs Inc (NYSE:SHO) 51,650,000 5,000,000 0.19% 50,050,000 -3.10% Suntrust Bks Inc (NYSE:STI) 1,013,917,000 34,358,412 3.66% 976,122,485 -3.73% Supermedia Inc (NASDAQ:SPMD) 22,711,000 2,607,504 0.08% 15,279,973 -32.72% Symantec Corp (NASDAQ:SYMC) 83,700,000 5,000,000 0.30% 87,800,000 4.90% Talecris Biotherapeutics (NASDAQ:TLCR) 256,300,000 11,000,000 0.93% 287,430,000 12.15% Teradata Corp Del (NYSE:TDC) 59,682,000 1,450,000 0.22% 69,832,000 17.01% Teva Pharmaceutical (NASDAQ:TEVA) 231,979,000 4,450,000 0.84% 215,513,500 -7.10% Transocean Ltd (NYSE:RIG) 500,472,000 7,200,000 1.81% 563,976,000 12.69% Vail Resorts Inc (NYSE:MTN) 116,566,000 2,239,924 0.42% 109,509,884 -6.05% Veeco Instrs Inc Del (NASDAQ:VECO) 95,715,000 2,228,000 0.35% 106,988,560 11.78% Walter Energy Inc (NYSE:WLT) 127,840,000 1,000,000 0.46% 115,830,000 -9.39% Wells Fargo & Co (NYSE:WFC) 635,295,000 20,500,000 2.29% 661,535,000 4.13% Whirlpool Corp (NYSE:WHR) 309,413,000 3,483,200 1.12% 283,567,312 -8.35% Wilmington Trust Corp (NYSE:WL) 22,286,000 5,135,000 0.08% 22,594,000 1.38% Xl Group Plc (NYSE:XL) 187,116,000 8,575,425 0.68% 190,803,206 1.97%Interested in these companies? Below are 10 companies from Paulson & Co’s 85-company portfolio common equity portfolio (arranged alphabetically).  We will take a look at the remaining 75 companies during the next nine trading days.

  • ABITIBIBOWATER INC (NYSE:ABH): AbitbiBowater, Inc. manfuactures newsprint, coated and uncoated groundwood papers, bleached kraft pulp, and lumber products.  The Company owns and operates pulp and paper mills, a coating operation, and saw mills in North America.  This company has returned 11% year-to-date.  Its earnings per share in the last quarter were -$33.62, its net profit margin in the last quarter was -69.55%, its operating profit margin was -60.32%, and its return on average assets was -50.78%. One wonders what Paulson & Co. saw in this stock.  Institutional investors, of which Paulson & Co. is one, own 61.73% of its outstanding shares, and the top 10 institutions own 45.1% of its shares.  No insider holds more than 5% of the shares.  The largest shareholder is Hamblin Watsa Investment Counsel Ltd., with 13,234,217 shares, or 13.6% of the outstanding shares.
  • AIRGAS INC (NYSE:ARG): Airgas, Inc. distributes industrial, medical and specialty gases and related equipment.  The Company also produces and distributes liquid carbon dioxide and dry ice in the United States.  Airgas’ integrated distribution network consists of branch locations, distribution centres, and outbound telemarketing operations.  Its earnings per share in the last quarter was $2.66, its net profit margin in the last quarter was 5.4%, its operating profit margin was 10.48%, and its return on average assets was 4.62%.  Institutional investors own 78.68% of the 84 million shares outstanding, and the top 10 institutional holders own 35.1% of the outstanding shares.  The largest shareholder is Eton Park Capital Management, LLC, which owns 6,014,200 shares, or 7.1% of the total shares outstanding.  Insiders with more than 5% ownership own 9.51% of the outstanding shares.
  • ALCON INC (NYSE:ACL): Alcon, Inc., an eye care company, develops, manufactures, and markets pharmaceuticals, surgical equipment and devices, and contact lens care and other care products that treat conditions of they eye.  Alcon sells its products throughout the world.  Its earnings per share in the last quarter were $7.27, its net profit margin in the last quarter was 28.75%, its operating margin was 31.79%, and its return on average assets was 21.4%.
  • ALBERTO CULVER CO (NYSE:ACV): Alberto-Culver Company manufactures, distributes, and markets personal care products in the US and internationally.  The Company markets beauty care products, and sells beauty care brands to salons.  The company also owns Beauty Supply stores.  Its earnings per share in the last quarter were $1.65, its net profit margin was 11.78%, its operating margin was 17.84%, and its return on average assets was 9.93%.  Institutional investors own 66.56% of the 103 million shares outstanding, of which the top 10 own 30.8%.  Insiders with more than 5% ownership own 12.89% of the shares outstanding.  The largest institutional shareholder is GAMCO Investors, Inc., which owns 4,984,747 shares, or 4.9% of the outstanding shares.
  • AMERICAN CAP LTD (NASDAQ:ACAS): American Capital, Ltd., is an alternative asset manager.  The Company, directly and through its global asset management business invests in employee and management buyouts, private equity buyouts, and early stage and mature private and public companies.  American Capital provides debt and equity to fund growth, acquisitions, recapitalizations, and securitizations.  Its earnings per share in the last quarter were $3.00, its net profit margin was 266.43%, its operating margin was 46.855, and its return on average assets was 25.35%.  Institutional investors own 53.54% of its 341 million shares outstanding, of which the top 10 own 35.5% of the outstanding shares.  Its largest shareholder is Paulson & Co., which own 43,725,000 shares, or 12.8% of the outstanding shares.
  • ANADARKO PETE CORP (NYSE:APC): Anadarko Petroleum Corporation is an independent oil and gas exploration and production company with international operations.  In the United States, the Company operates in Texas and surrounding states, the Rocky Mountain region, Alaska, and the Gulf of Mexico.  Internationally, Anardarko has exploration and/or production operations in Africa, Asia, South America, and the Caribbean.  Its earnings per share in the last quarter were $1.54, its net profit margin was 4.79%, its operating margin was 9.77%, and its return on average assets was 1.00%.  Institutional investors own 81.91% of the 496 million shares outstanding, of which the top 10 own 35.7%.  Its largest shareholder is Wellington Management Company, LLP, which owns 27,552,568 shares, or 5.6% of the outstanding shares.
  • ANGLOGOLD ASHANTI LTD (NYSE:AU): AngoGold Ashanti Limited is a holding company for a group of companies which explore for and mine gold internationally.  The Group has operations in the Vaal River and West Witwatersrand areas of South Africa as well as Namibia, Mali, Brazil, Argentina, Austrialia, Tanzania and the United States.  Its earnings per share in the last quarter was $0.19, its net profit margin was 4.67%, its operating margin was 18.47%, and its return on average assets was 2.59%.  Institutional investors own 44.71% of its 381 million shares outstanding, of which the top 10 own 35.4%.  Insiders with more than 5% ownership own 45.33% of the outstanding shares.
  • APOLLO GROUP INC (NASDAQ:APOL): Apollo Group, Inc. provides higher education programs for working adults.  The Company provides educational programs and services at the high school, undergraduate, and graduate levels online and on-campus through subsidiaries.  Its earnings per share in the last quarter were $3.76, its net profit margin was 17.81%, its operating margin was 30.89%, and its return on average assets was 27.16%.  Institutional investors own 81.5% of the 143 million shares outstanding, of which the top 10 own 36.5%.  Insiders with more than 5% ownership own 32.5% of the shares outstanding (note that at least one institutional investor must also be considered an insider in this company).
  • ASHFORD HOSPITALITY TR (NYSE:AHT): Ashford Hospitality Trust is a self-advised real estate investment trust focusing on the lodging industry.  The Company owns several hotel properties in primary, secondary, and resort markets throughout the United States.  Its earnings per share for the last quarter were -$1.60, its net profit margin was -44.11%, its operating margin was -17.57%, and its return on average assets was -10.53%.

This post originally appeared at Wall St. Cheat Sheet.

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