At the beginning of the month, I marveled that no one was listening to John Paulson, arguably the most successful investor in the world. Paulson & Co. reported its end-of-year holdings to the Securities and Exchange Commission yesterday, and I'm not about to miss an opportunity to gain some insight into this super-investor's views:
Doubling down on drillers
Paulson is a bit late to the party with a new position in drilling services company Transocean
Paulson also added to his position in another company that was involved in the Gulf spill, Anadarko Petroleum
Still betting on financials
Paulson may have trimmed his positions in Bank of America
I like this bet. In fact, at the end of November, I wrote up a trade idea consisting of a basket of the four largest commercial banks (B of A, Citi, JPMorgan and Wells Fargo. My thesis was that the valuation of the group simply didn't reflect its "inevitable" position in the banking sector. Even after a run-up in the shares since then, that still looks like it's the case today.
Unashamedly bullish on gold
Paulson & Co. remains the largest shareholder of SPDR Gold Shares
Agree or disagree with Paulson's trades? Let me know in the comments section below.
In his year-end investor letter, John Paulson wrote: "We believe the U.S. economy is recovering." Get onboard this train with "3 ETFs Set to Soar During the Recovery."