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Gold-Focused Guru John Paulson Reports First Quarter Holdings

May 22, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers
John Paulson is the President and Portfolio Manager of Paulson & Co. The guru became a guru by short-selling subprime mortgages in 2007, but is most known for his stance on gold. According to Paulson’s Investing Philosophy, the fund seeks to make money from situations when one public company announces plans to take over another. Merger arbitrage hedge funds primarily study equity markets, but they also research the market for credit default swaps, a form of insurance that starts paying out as soon as a credit security falls in value.

During the first quarter the guru bought 8 new stocks bringing his portfolio to 80 stocks valued at over $20.43 billion. The following five stocks are the guru’s five largest holdings as of the close of the first quarter.

SPDR Gold Trust (ETF) (GLD)

Paulson’s largest position is in the SPDR Gold Trust where he maintains 10,234,852 shares. The guru’s holdings make up for 6.2% of his total portfolio as well as for 2.29% of SPDR Gold Trust’s shares outstanding.

The guru did not alter his holdings in the SPDR Gold Trust over the past quarter. During the second quarter of 2013 the guru sold over 11.5 million shares of the trust. Paulson last made a decrease in holdings during the second quarter of 2013, and since then the price per share has dropped approximately -9.1%.

Paulson’s holding history:

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The SPDR Gold Trust is a part of the SPDR family of exchange-traded funds managed and marketed by State Street Global Advisors. SPDR Gold Shares is the largest physically backed gold exchange traded fund in the world.

SPDR Gold Shares’ historical pricing:

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The top guru shareholders of SPDR Gold Trust:

1. John Paulson: 10,234,852 shares, representing 2.29% of the trust’s shares outstanding.

2. Jean-Marie Eveillard: 3,489,204 shares, representing 0.78% of the trust’s shares outstanding.

SPDR Gold Trust (ETF) has a market cap of $56.78 billion. Its shares are currently trading at around $124.78.

Extended Stay America (STAY)

The guru’s second largest holding is in Extended Stay America where he maintains 55,711,591 shares of the company’s stock. This position makes up for 6.2% of his total assets managed.

The guru did not alter his position in the company over the past quarter. Since his first buy in the last quarter, the price per share is trading down approximately -13.1%.

Paulson’s historical holding history:

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Extended Stay America owns and operates hotels under the core brand Extended Stay America, which serves the mid-priced extended stay segment, and other brands.

Extended Stay America’s historical revenue and net income:

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The analysis on Extended Stay America reports that the company’s revenue per share has been in decline over the past year, its asset growth is faster than its revenue growth and its P/B ratio is sitting near a 1-year low.

Extended Stay America has a market cap of $21.44 with a P/E ratio of 81.80 and a P/S ratio of 3.40. The company had an annual average earnings growth of 20.90% over the past ten years.

Vodafone Group (VOD)

The guru’s third largest holding was in Vodafone Group where the guru holds on to 28,520,289 shares of the company’s stock. His holdings make up for 5.1% of his total portfolio and 1.08% of the company’s shares outstanding.

Paulson made a large jump in holdings over the past quarter. Paulson upped his stake 48.56% by purchasing 9,322,509 shares of the company’s stock. He bought these shares in the first quarter price range of $36.05 to $49.09, with an estimated average quarterly price of $43.52 per share. Since then the price per share has dropped approximately -20.9%.

Paulson’s historical holding history:

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Vodafone Group PLC is a provider of mobile communications. It has a single group of related services and products being the supply of communications services and products. Segment information is provided on the basis of geographic areas, which are: Germany, Italy, Spain, UK, Europe, India and Africa, Middle East and Asia Pacific.

Vodafone’s historical revenue and net income:

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The analysis on Vodafone reports that the company’s issued GBP4.9 billion of debt over the past year, it’s price is also trading near a 10-year high as are its P/E, P/S and P/B ratios. The analysis also recognized that Vodafone’s dividend yield is also at a 5-year low.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Vodafone has a market cap of $91 billion. Its shares are currently trading at around $34.42 with a P/E ratio of 127.80, a P/S ratio of 1.20 and a P/B ratio of 0.80. The company currently holds a dividend yield of 8.80%. Vodafone had an annual average earnings growth of 2.30% over the past five years.

Grifols SA (GRFS)

Paulson’s fourth largest holding is in Grifols SA where he maintains 19,814,807 shares of the company’s stock. His holdings make up for 4% of his total portfolio as well as for 5.76% of the company’s shares outstanding.

The guru made a slight reduction in his position over the first quarter. He cut his holdings -0.04% by selling 8,600 shares. He sold these shares in the quarterly price range of $34.91 to $42.83, with an estimated average quarterly price of $39.84 per share. Since then the price per share has increased approximately 4.6%.

Paulson’s historical holding history:

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Grifols SA is a vertically integrated producer of plasma derivatives. Its activities include sourcing raw material, manufacturing various plasma derivative products and selling and distributing final products to healthcare providers.

Grifols’ historical revenue and net income:

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The analysis on Grifols reports that the company’s price is nearing a 10-year high, its Piotroski F-Score is at 7, indicating a healthy situation and its P/E and P/S ratios are trading at 3-year highs.

Top guru shareholders of Grifols:

1. John Paulson: 19,814,807 shares, representing 5.76% of the company’s shares outstanding.

3. Jim Simons: 493,102 shares, representing 0.14% of the company’s shares outstanding.

2. Steven Cohen (Trades, Portfolio): 456,098 shares, representing 0.13% of the company’s shares outstanding

Grifols SA has a market cap of $14.45 billion. Its shares are currently trading at around $42.04 with a P/E ratio of 36.50, a P/S ratio of 3.70 and a P/B ratio of 6.10. The company had an average earnings growth of 28.20% over the past five years.

Time Warner Cable (TWC)

The guru’s fifth largest holding is in Time Warner Cable where he maintains 5,977,091 shares of the company’s stock. This position makes up for 4% of his total portfolio as well as 2.09% of the company’s shares outstanding.

The guru made a minor reduction in his holdings over the past quarter. Paulson sold 4,109 shares of the company’s stock near the estimated average quarterly price of $136.82 per share. Since then the price per share has increased approximately 2.1%.

Paulson’s historical revenue and earnings growth:

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The analysis on Time Warner Cable reports that the company’s price is near a 10-year high and its P/S ratio is sitting near a 5-year high.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Time Warner has a market cap of $39.1 billion. Its shares are currently trading at around $140.34 with a P/E ratio of 19.80 and a P/S ratio of 1.80. The company has a dividend yield of 1.90% and the company had an annual average earnings growth of 12.20% over the past five years.

You can check out John Paulson’s complete first quarter portfolio here.

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