Gregory Zuckerman of WSJ updated us on the performance of John Paulson’s hedge funds:
The truth is, despite the strong number for the month, the billionaire hedge fund had his moments of doubt, at least earlier on during the quarter. Read the reports we have had on him during the past two months:
But nowadays, Paulson sounds once again more confident and more bullish. Speaking at the University Club in New York City recently, Paulson gave similar assessments across asset classes such as stocks, bonds, real estate, and gold recently. Here are the key points he made:
We have to wait for another forty days before Paulson updates his 3Q10 trading activities. We have his 2Q10 data and these are his top purchases during the quarter:
No. 1: The Hartford Financial Services Group In (HIG, Financial), Add: 3.05% of the portfolio - Total: 44,000,000 Shares
Hartford Financial Services is one of the nation's largest investment and insurance companies, offers a complete line of insurance and financial service products to customers all over the world. The Hartford Financial Services Group In has a market cap of $10.41 billion; its shares were traded at around $23.42 with a P/E ratio of 5.67 and P/S ratio of 0.42. The dividend yield of The Hartford Financial Services Group In stocks is 0.85%.
No. 2: Exxon Mobil Corp. (XOM, Financial), Buy: 2.31% of the portfolio - Total: 9,169,259 Shares
Exxon Mobil Corporation's principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacturing of petroleum products and transportation and sale of crudeoil, natural gas and petroleum products. Exxon Mobil Corp. has a market cap of $318.44 billion; its shares were traded at around $62.54 with a P/E ratio of 12.07 and P/S ratio of 1.03. The dividend yield of Exxon Mobil Corp. stocks is 2.81%. Exxon Mobil Corp. had an annual average earning growth of 11.2% over the past 10 years. GuruFocus rated Exxon Mobil Corp. the business predictability rank of 3.5-star.
No. 3: Sybase Inc. (SY, Financial), Buy: 1.99% of the portfolio - Total: 7,000,000 Shares
Sybase is the largest global enterprise software company exclusively focused on managing and mobilizing information from the data center to the point of action.. Sybase Inc. had an annual average earning growth of 14.2% over the past 10 years.
No. 4: Mylan Laboratories Inc. (MYL, Financial), Add: 1.4% of the portfolio - Total: 30,000,000 Shares
Mylan Inc. is one of the world's quality generic and specialty pharmaceutical companies. Mylan Laboratories Inc. has a market cap of $5.85 billion; its shares were traded at around $18.9 with a P/E ratio of 13.7 and P/S ratio of 1.15. Mylan Laboratories Inc. had an annual average earning growth of 25% over the past 10 years. GuruFocus rated Mylan Laboratories Inc. the business predictability rank of 2.5-star.
No. 5: Mariner Energy Inc. (ME, Financial), Buy: 0.95% of the portfolio - Total: 10,000,000 Shares
Mariner Energy, Inc. is an independent oil and gas exploration, development and production company with principal operations in the Gulf of Mexico and the Permian Basin in West Texas. Mariner Energy Inc. has a market cap of $2.52 billion; its shares were traded at around $24.42 with a P/E ratio of 48.84 and P/S ratio of 2.67.
Check out his long equity stock portfolio as of June 30, 2010: http://www.gurufocus.com/holdings.php?GuruName=John+Paulson
Check back in about 40 days to see his updated stock holdings and trading activities.
As stocks struggled during much of 2010, bullish hedge-fund managers like John Paulson looked like naive optimists.
They got their revenge in September. Mr. Paulson, who racked up losses during the first eight months of the year and was criticized for an upbeat view on markets, enjoyed gains of about 12.5% in his biggest fund in September, according to an investor. Those returns trounced the 8.8% gain for the Standard & Poor's 500-stock index, its best September since 1939.
The truth is, despite the strong number for the month, the billionaire hedge fund had his moments of doubt, at least earlier on during the quarter. Read the reports we have had on him during the past two months:
When you manage $32 and run a leverage hedge fund, you will have reasons to be nervous too.
But nowadays, Paulson sounds once again more confident and more bullish. Speaking at the University Club in New York City recently, Paulson gave similar assessments across asset classes such as stocks, bonds, real estate, and gold recently. Here are the key points he made:
· Paulson reiterated his bullish call on stocks, noting the historically large discrepancy between the equity earnings yield of 7-8% and the 10-year note yield of 2.6%.
· Furthermore, because of his belief that the Federal Reserve will continue to implement quantitative easing measures, Paulson is expecting substantial inflation in the next several years. The noted hedge fund manager stated that low double-digit inflation is possible by 2012.
· Accordingly, Paulson is shorting longer-dated treasuries through 5 and 7 year calls on the 30-year Treasury bond.
· In light of pending inflation, Paulson stressed that investors do not want to own long-dated liabilities, but rather should issue them. One of the most efficient ways for people to take advantage of this is through mortgages on residential real estate, noting that now is the best time in 50 years to purchase a home.
· As for the gold price, Paulson remains very bullish on the yellow metal, noting that the price of gold has been highly correlated to the monetary base for as long as his firm, Paulson & Co., has tracked the data.
· Given his expectation for further money printing by the Fed – and that in 1980 the gold price rose by 100% more than the correlation implied – Paulson noted that the price of gold could hit $2,400 based only on monetary expansion, and as high as $4,000 per ounce based on a projected overshoot.
· Lastly, he noted that 80% of his assets are denominated in gold – a strong indication of his disdain for fiat currencies.
· In terms of the gold price, Paulson pointed to gold’s parabolic rise in 1980 and his expectations of a repeat performance.
We have to wait for another forty days before Paulson updates his 3Q10 trading activities. We have his 2Q10 data and these are his top purchases during the quarter:
No. 1: The Hartford Financial Services Group In (HIG, Financial), Add: 3.05% of the portfolio - Total: 44,000,000 Shares
Hartford Financial Services is one of the nation's largest investment and insurance companies, offers a complete line of insurance and financial service products to customers all over the world. The Hartford Financial Services Group In has a market cap of $10.41 billion; its shares were traded at around $23.42 with a P/E ratio of 5.67 and P/S ratio of 0.42. The dividend yield of The Hartford Financial Services Group In stocks is 0.85%.
No. 2: Exxon Mobil Corp. (XOM, Financial), Buy: 2.31% of the portfolio - Total: 9,169,259 Shares
Exxon Mobil Corporation's principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacturing of petroleum products and transportation and sale of crudeoil, natural gas and petroleum products. Exxon Mobil Corp. has a market cap of $318.44 billion; its shares were traded at around $62.54 with a P/E ratio of 12.07 and P/S ratio of 1.03. The dividend yield of Exxon Mobil Corp. stocks is 2.81%. Exxon Mobil Corp. had an annual average earning growth of 11.2% over the past 10 years. GuruFocus rated Exxon Mobil Corp. the business predictability rank of 3.5-star.
No. 3: Sybase Inc. (SY, Financial), Buy: 1.99% of the portfolio - Total: 7,000,000 Shares
Sybase is the largest global enterprise software company exclusively focused on managing and mobilizing information from the data center to the point of action.. Sybase Inc. had an annual average earning growth of 14.2% over the past 10 years.
No. 4: Mylan Laboratories Inc. (MYL, Financial), Add: 1.4% of the portfolio - Total: 30,000,000 Shares
Mylan Inc. is one of the world's quality generic and specialty pharmaceutical companies. Mylan Laboratories Inc. has a market cap of $5.85 billion; its shares were traded at around $18.9 with a P/E ratio of 13.7 and P/S ratio of 1.15. Mylan Laboratories Inc. had an annual average earning growth of 25% over the past 10 years. GuruFocus rated Mylan Laboratories Inc. the business predictability rank of 2.5-star.
No. 5: Mariner Energy Inc. (ME, Financial), Buy: 0.95% of the portfolio - Total: 10,000,000 Shares
Mariner Energy, Inc. is an independent oil and gas exploration, development and production company with principal operations in the Gulf of Mexico and the Permian Basin in West Texas. Mariner Energy Inc. has a market cap of $2.52 billion; its shares were traded at around $24.42 with a P/E ratio of 48.84 and P/S ratio of 2.67.
Check out his long equity stock portfolio as of June 30, 2010: http://www.gurufocus.com/holdings.php?GuruName=John+Paulson
Check back in about 40 days to see his updated stock holdings and trading activities.
