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Insights into the Investment Shifts of a Hedge Fund Titan

John Paulson (Trades, Portfolio), the President and Portfolio Manager of Paulson & Co. Inc., is renowned for his strategic investment approaches, particularly in merger, event, and distressed strategies. With a robust background as a mergers and acquisitions banker, Paulson has shaped his firm into a leading entity in the hedge fund industry, managing significant assets and focusing on merger arbitrage. His educational accolades from Harvard Business School and New York University, combined with his professional tenure at Gruss Partners and Bear Stearns, underscore his expertise in finance and investments.

• Warning! GuruFocus has detected 3 Warning Signs with MDGL.

Summary of New Buys

During the third quarter of 2024, John Paulson (Trades, Portfolio) made a notable new addition to his portfolio:

• Southwestern Energy Co (NYSE:SWN) was the significant new buy with 2,200,000 shares, representing 1.1% of the portfolio and a total value of $15.64 million.

Key Position Increases

Paulson also strategically increased his stakes in several companies:

• Madrigal Pharmaceuticals Inc (NASDAQ:MDGL) saw an addition of 192,000 shares, bringing the total to 2,042,000 shares. This adjustment increased the share count by 10.38%, impacting the portfolio by 2.59% with a total value of $392.61 million.

• Tellurian Inc (TELL) experienced a substantial increase of 24,659,337 shares, totaling 30,000,000 shares. This represents a 461.73% increase in share count, with a total value of $29.04 million.

Summary of Sold Out Positions

Paulson completely exited positions in two companies in this quarter:

• Anglogold Ashanti PLC (NYSE:AU): All 1,932,905 shares were sold, impacting the portfolio by -3.59%.

• Everbridge Inc (EVBG): All 1,225 shares were liquidated, resulting in a negligible impact on the portfolio.

Key Position Reductions

Reductions were also part of Paulson's Q3 strategy:

• Altice USA Inc (NYSE:ATUS) saw a reduction of 586,313 shares, a 50.53% decrease, impacting the portfolio by -0.09%. The stock traded at an average price of $1.93 during the quarter and has returned 61.11% over the past three months and -19.69% year-to-date.

Portfolio Overview

As of the third quarter of 2024, John Paulson (Trades, Portfolio)'s portfolio comprised 15 stocks. The top holdings were:

• 27.55% in Madrigal Pharmaceuticals Inc (NASDAQ:MDGL)

• 16.25% in Perpetua Resources Corp (NASDAQ:PPTA)

• 15.95% in BrightSphere Investment Group Inc (NYSE:BSIG)

• 15.14% in Bausch Health Companies Inc (NYSE:BHC)

• 7.84% in Novagold Resources Inc (NG)

These holdings are primarily concentrated in five industries: Healthcare, Basic Materials, Financial Services, Energy, and Communication Services.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.