For years, John Paulson of Paulson & Co. was the superlative investor. In 2012 his new buys had the highest average gain, 652.47% over six months, and the highest average return, 364.4% over 12 months, according to the GuruFocus Score Board of Gurus. The phenomenal hedge fund founder is very well-known for his returns on gold and for betting against mortgages in 2008, returning up to 600%. But last month, when gold dropped to its lowest point in 33 years, Paulson’s Gold Fund watched as the $500 million glow dimmed by 27%. According to Bloomberg, Paulson & Company’s assets have decreased more than 50% from $38 billion in 2011. The GuruFocus update shows the Paulson portfolio with 86 stocks and a total value of $16.26 billion as of May 1, 2013. Paulson’s top three holdings show that Paulson is still stubborn for gold, but Sprint Inc. (S) is the real bright spot:
No. 1: SPDR Gold Trust (ETF) (GLD), Weighting: 21.7% Shares Owned: 21,837,552, Value: $3.5 billion
John Paulson continues to hold over 21 million shares of GLD at an average cost of $54 per share for a gain of 164% since he first bought in first quarter of 2009.
Down 8% over 12 months, SPDR Gold Trust (ETF) has a market cap of $64.83 billion; its shares were traded at around $142.46.
Here are the GLD price changes over 10 years:
His holding history:
No. 2: Anglogold Ashanti Limited (AU), Weighting: 5.4%, Shares Owned: 28,203,999, Value: $8.8 million
Paulson & Company has also held AU since first quarter of 2009. His average cost per 31,239.099 shares is $34 per share, for a loss of 44%.
Down 41% over 12 months, AngloGold Ashanti Limited (AU) has a market cap of $7.6 billion; its shares were traded around $19.25 with a P/E ratio of 11.0 and a P/S ratio of 1.30. The dividend yield of Anglogold Ashanti Limited stocks is 1.70%.
AngloGold Ashanti Limited’s fourth quarter 2012 report shows gold production of 3.944 million ounces, which generated $6.35 billion in gold income. Production was lower than expected due to worker strikes. The company had adjusted headline earnings of $924 billion, which would have been $1.13 billion without the strike impact, and EBITDA of $2.4 billion, which would have been around $2.7 billion without the strike impact, dropped from $3.01 billion in 2011.
AU paid a quarterly dividend of 50 South African rand per share ($0.06 USD per share). The full year dividend was 300 South African rand per share. As of Dec. 31, 2012, AngloGold Ashanti's ore reserve totaled 74.1 million ounces.
The company expects two capital projects will remain on schedule at Tropicana and Kibali where first production of gold is expected before 2013 year-end.
Also, the company just hired a new CEO, Srinivasan Venkatakrishnan, who hopes to be effective in handling the conflict between unions, mines and workers.
AngloGold Ashanti is a global gold mining company and the world's third largest gold producer. Headquartered in Johannesburg, South Africa, AngloGold Ashanti has 20 operations on four continents and one of the gold industry's most successful exploration teams which work across both the established and new gold producing regions of the world, including Colombia, Guinea and Australia, among others.
The GuruFocus Interactive Valuation feature tells the AU story over 10 years:
No. 3: Sprint Nextel Corp (S), Weighting: 4.5%, Shares Owned: 127,693,000, Value: $7.2 million
John Paulson, Paulson & Company, also holds 127,693,000 million shares at an average cost of $6 per share for a gain of 22% since he first bought in fourth quarter of 2009.
Up 205% in 12 months, Sprint Nextel Corp. (S) was incorporated in 1938 in Kansas. Sprint Nextel Corp has a market cap of $21.98 billion; its shares were traded at around $7.32 with and P/S ratio of 0.60.
Sprint reported its first quarter 2013 operating income of $29 million, includes accelerated depreciation of approximately $360 million, and an adjusted OIBDA of $1.5 billion up over 25% year over year, and the highest year-over-year increase in more than six years. Also, Sprint’s wireless service revenue of $7.1 billion is the highest ever and increased nearly 9% year over year.
Here’s the S share price since June of 2002:
In the age-old game of betting, buying and selling, will John Paulson reverse the reversal? Only the guru knows.
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