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John Paulson’s Top 5 Stocks He Bought in Q4

February 15, 2013 | About:
Holly LaFon

Holly LaFon

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John Paulson of Paulson & Co. had a 29% quarter-over-quarter turnover in his $16.3 billion portfolio in the fourth quarter, as he bought 26 new stocks, for a total of 86. As a macro investor, Paulson gave his thesis on the 2013 market on CNBC in January. In summary, he believes the housing market recovery will lead the U.S. economic recovery, is seeing positive turnaround in the U.S. energy market, is bullish on credit cards, auto loans and mortgages and less bullish on credit, and believes gold will do well in the next three to five years.

In the fourth quarter, the largest of Paulson’s new buys are: Sprint Nextel Corp. (S), Plains Exploration & Production Company (PXP), Realogy Holdings Corp. (RLGY), Freeport McMoRan Copper & Gold (FCX) and McMoRan Exploration Co. (MMR).

New Buys

Spring Nextel Corp. (S)

Paulson purchased 127,693,000 shares of Sprint in the fourth quarter for $6 per share on average, for a 4.5% weighting in his portfolio. Spring shares have gained 158% in the past 12 months.

Sprint Nextel Corp. was incorporated in 1938 in the state of Kansas. Sprint Nextel Corp. has a market cap of $17.79 billion; its shares were traded at around $5.91 with and P/S ratio of 0.5.

Plains Exploration & Production Company (PXP)

Paulson bought 12.8 million shares of PXP for $39 per share on average, for a 3.7% weighting in his portfolio. His position represents a 9.92% stake in the company.

Plains Exploration & Production Company was formed as a Delaware corporation in 2002. Plains Exploration & Production Company has a market cap of $6.13 billion; its shares were traded at around $47.63 with a P/E ratio of 29.9 and P/S ratio of 2.9.

Realogy Holdings Corp. (RLGY)

Paulson bought 13,302,344 shares of Realogy Holdings for $37 per share on average, representing a 3.5% weighting in his portfolio and 9.19% of the company.

Freeport McMoRan Copper & Gold (FCX)

Paulson bought 9 million shares of Freeport McMoRan Copper & Gold at $38 per share on average, for a 1.9% weighting in his portfolio.

Freeport-McMoRan Copper & Gold was incorporated under the laws of the state of Delaware on Nov. 10, 1987. Freeport-McMoRan Copper & Gold has a market cap of $33.17 billion; its shares were traded at around $34.98 with a P/E ratio of 11.3 and P/S ratio of 1.9. The dividend yield of Freeport-McMoRan Copper & Gold stocks is 3.5%.

McMoRan Exploration Co. (MMR)

Paulson bought 15,556,300 shares of MMR at $13 per share on average, for a 1.5% weighting in his portfolio and a 9.61% stake in the company.

McMoRan Exploration Co. is engaged in the exploration, development and production of oil and natural gas offshore in the Gulf of Mexico and onshore in the Gulf Coast region, with a focus on the potentially hydrocarbons contained in large, deep geologic structures often located beneath shallow reservoirs where reserves have been produced, commonly known as deep gas.

McMoRan Exploration Co. has a market cap of $2.59 billion; its shares were traded at around $16.04 with and P/S ratio of 6.3.

See John Paulson’s portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of John Paulson.


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