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John Paulson Trims BAC Position, Still Bullish on Gold

February 15, 2011 | About:
matsandalex

matsandalex

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Investors eagerly awaiting John Paulson's 13F filing were surprised to learn that he trimmed his stake in Bank of America (BAC).

Paulson who gained fame for shorting sub-prime derivatives in 2007, has had a bullish bias towards financial companies since 2009.

However, Paulson trimmed his stake in BAC from 137.8 million shares to 123.9 million shares in Q4. BAC is still Paulson's third largest stock holding despite reducing his position by 10%.

Paulson's second biggest stock holding is Citi (C) where Paulson reduced his holdings by only 2.47%. His funds still own 413.5 million shares of Citi.

It is also interesting to note that Paulson is still bullish on the price of gold. The two largest holdings in his funds are the SPDR Gold Trust (GLD) with a market value of $4.37 billion and Anglogold Ashanti (AU) with a $2.01 billion stake.

Assets under management for Paulson's funds grew to $30 billion in the fourth quarter meaning that his two gold positions make up 20% of his total assets.

At a speech in September 2010, Paulson noted that the price of gold could hit between $2400-$4000/oz due to monetary expansion.

http://fundmanagernews.com/


Rating: 3.0/5 (3 votes)

Comments

yswolinsky
Yswolinsky - 3 years ago
I wonder if he is slowly getting out of BAC. Here are my thoughts on Paulson's investment in BAC-_http://www.gurufocus.com/news.php?id=110254

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