Paulson & Co.'s latest 13F is out. As has already been extensively discussed, Paulson largely has eliminated his BAC stake, which in recent days is rumored to have been cut to zero, although as of June 30 was a little over $660 Million, or 60.4 million shares, a substantial 52% cut from the $1.65 billion or 123.6 million shares at March 31. In the process he made BAC his top 12 position, a far cry from where it was in 2010. Overall, Paulson deleveraged substantially in Q2, with the bulk of his positions declining across the board, although he did cut his whopping 1.8 billion Citi stake by just 19% to $1.4 billion, which is where the pain trade for the fund is contained (for those wondering, his JPM position was cut by just 6%). Paradoxically, as of June 30, Paulson actually added $160 million to his Capital One position and a whopping $300 million to his Wells Fargo position making these his top 6 and 8th positions, respectively. Somehow we doubt his LPs will be too happy with this decision. Paulson added new positions in Life Technologies, Savvis, News Corp, Southern Union, Mosaic, Tenet, Walter Energy, Grifols, NYSE Euronext (probably an M&A arb), Agnico Eagle Mines, and State Bank Financial. These are highlighted in green in the table below. Any simple additions are bolded. Paulson cut his entire stakes in Alcon, Alberto Culver, Atheros, Boston Scientific, CIT, Cooper Companies, Emergency Medical Services, International Paper, JC Penney, Kinross Gold, Lorillard, Marshall & Isley, Novell, Pride Intl, RC2 Corp, Seagate, Smurfit Stone (so much for that whole paper trade), St Jude, Talecris and Wilmington Trust. We expect major selling in Paulson's Q3 update unless like last year, his fund rises from the ashes of reality courtesy of yet another round of easing. Somehow we doubt it (the Phoenix thing, not the Easing).
Complete Paulson Q2 Holdings Summary: Cuts Citi by 20%, BofA By 52%, Adds 64% To Wells Fargo
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