In the second quarter, John Paulson (Trades, Portfolio) of Paulson & Co. acquired three new holdings. They were with EMC Corp. (EMC, Financial), VMWare Inc. (VMW, Financial) and Take-Two Interactive Software Inc. (TTWO, Financial).
Paulson is the president and portfolio manager of Paulson & Co. Inc., which was founded in 1994. The firm was established as a merger arbitrage hedge fund, meaning it focuses on company mergers, bankruptcy reorganization and distressed credit. It seeks capital preservation, above average returns over the long term and low correlation to the markets. Paulson has stock in 83 companies and is worth $9.6 million. His quarter-over-quarter turnover rate is 8%.
EMC
In EMC, Paulson purchased 10,045,606 shares at an average price of $27.02 per share. The transaction had an impact of 2.84% on his portfolio.
EMC supports and enables businesses and service providers to convert its information technology (IT) operations to an as-a-service (ITaaS) model using cloud computing. It has a market cap of $55.9 billion with an enterprise value of $52.1 billion. It has a price-earnings (P/E) ratio of 26.6 with a forward P/E of 16.1. Its price-book (P/B) ratio is 2.5, and its price-sales (P/S) ratio is 2.3. GuruFocus ranked its financial strength 7 of 10 and its profitability and growth 8 of 10.
The company has an operating margin of 12.5% and a net margin of 8.5%. Its Piotroski F-Score is 5, indicating a stable financial condition. Its Altman Z-Score is 2.93, placing it in a grey zone.
Among the gurus invested in EMC, Dodge & Cox is the largest shareholder.
VMWare
In VMWare, Paulson purchased 1,972,100 shares at an average price of $57.64 per share. The transaction had an impact of 1.18% on the portfolio.
VMWare provides cloud and virtualization software and services. It has a market cap of $30.2 billion with an enterprise value of $23.01 billion. It has a P/E of 28.6 with a forward P/E of 16.5. Its P/B is 3.5, and its P/S is 4.5. GuruFocus ranked its financial strength 7 of 10 and its profitability and growth 9 of 10.
The company has an operating margin of 18.8% and a net margin of 15.5%. Its Piotroski F-Score is 8, indicating a strong financial condition. Its Altman Z-Score is 3.9, placing it in the safe zone.
Among the gurus invested in VMWare, Dodge & Cox is the largest shareholder.
Take-Two
In Take-Two, Paulson purchased 1 million shares at an average price of $36.83 per share. The transaction had an impact of 0.39% on the portfolio.
Take-Two develops, markets and publishes interactive entertainment such as video games. It has a market cap of $3.6 billion with an enterprise value of $2.9 billion. It has a P/E of 302.4 with a forward P/E of 34.7. Its P/B is 6.9, and its P/S is 2.6. GuruFocus ranked its financial strength 5 of 10 and its profitability and growth 6 of 10.
The company has an operating margin of 0.88% and a net margin of 1.4%. Its Piotroski F-Score is 6, indicating a stable financial condition. Its Altman Z-Score is 1.87, placing it in the grey zone.
Among the gurus invested in Take-Two, David Einhorn (Trades, Portfolio) is the largest shareholder.
Disclosure: I do not hold stock in any companies discussed in the article.
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