Paulson & Co filed a 13D report on Monday detailing their newly increased 9.9% stake in Conseco, an insurance company.
A 13D is filed when a company buys more than 5% of a company’s shares. Paulson had planned on the purchase since October and now owns 20 million shares, 5 million of which are in futures contracts that will allow him to re-purchase the shares at $6.50 in the summer of 2013. Current share prices are around $5.
Paulson is also betting big on gold and going long on Bank of America. He expects the bank’s stock to double, contrary to rival hedge fund SAC Capital, who sold 90% of their holdings in BAC around the same time Paulson made his projection.
Marketfolly has more on the filing.