John Paulson (Trades, Portfolio), president and portfolio manager of hedge fund Paulson & Co., purchased a new holding in Overseas Shipholding Group (OSGB, Financial) on Aug. 3, buying 56,425,082 shares for an average of $3.61 per share.
Overseas Shipholding is engaged in the ocean transportation of crude oil and petroleum products. The company owns a fleet of 89 double-hulled vessels, 65 of which are operated in international markets. The stock price rose marginally by 3% over the past year and closed at $3.61 on Aug. 13.
In 2014, the company reported loss per share of $0.65, though this is a vast improvement from losses of $20.94 the year before.
In November 2012, Overseas Shipholding filed for bankruptcy due to low global shipping rates and failure to secure a federal loan guarantee. After emerging from bankruptcy, the company filed for an IPO on May 4, and now trades on the AMEX exchange under the OSGB ticker.
Revenue for the second quarter was $235.2 million, up 37% year-over-year. Adjusted EBITDA also more than doubled from the year-ago quarter, reaching $130.2 million.
Paulson runs one of the largest hedge funds, solidifying his wealth and prominence after making $4 billion by buying credit-default insurance against billions of dollars in subprime mortgages before the collapse in 2007. The majority of his portfolio is held in healthcare stocks at 42.6%, followed by 17.4% in communication services, and 7.8% in consumer cyclical stocks.
Murray Stahl (Trades, Portfolio) and Jim Simons (Trades, Portfolio) are the only other gurus who currently hold stakes in Overseas Shipholding.
