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Tiziano Frateschi
Tiziano Frateschi
Articles (2571)  | Author's Website |

John Paulson's Largest 3rd Quarter Trades

Guru releases quarterly portfolio

John Paulson (Trades, Portfolio) is the president and portfolio manager of Paulson & Co. Inc. The guru’s largest trades during the third quarter were the following:

The investor exited his stake in Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT) with an impact of -3.46% on the portfolio.

The company operates as a hotel and leisure company. It conducts its hotel and leisure business both directly and through its subsidiaries.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The return on equity (ROE) of 7.49% and return on assets (ROA) of 1.02% are underperforming 61% of the companies in the Global Lodging industry. Financial strength has a rating of 5 out of 10. The cash to debt ratio of 0.65 is below the industry median of 0.75.

The guru closed his position in EMC Corp. (NYSE:EMC) with an impact of -2.84% on the portfolio.

The company supports businesses and service providers to transform information technology (IT) operations to an as-a-service model (ITaaS). It operates in three segments: EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. Third-quarter revenue grew 1% year over year and the company generated $1.4 billion in operating cash flow and $1.03 billion in free cash flow.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 9.96% and ROA of 4.58% are outperforming 63% of the companies in the Global Data Storage industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 1.87 is slightly above the industry median of 1.79.

The guru bought 5,963,100 shares of Hewlett Packard Enterprise Co. (NYSE:HPE). The trade had an impact of 1.49% on the portfolio.

The company provides servers, storage, networking and technology services. Its business segments are Enterprise Group, Software, Enterprise Services, Financial Services and Corporate Investments. During the fourth quarter, net revenue decreased 4% year over year and GAAP diluted net earnings per share were $1.92, which is below the previously provided outlook of $2.09 to $2.14.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 9.86% and ROA of 4.01% are outperforming 64% of the companies in the Global Communication Equipment industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.81 is below the industry median of 2.90.

The largest shareholder of the company among the gurus is Dodge & Cox with 12.69% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 3.37%, Hotchkis& Wiley with 1.16%, Richard Pzena (Trades, Portfolio) with 1.13%, Jana Partners (Trades, Portfolio) with 0.41%, John Paulson (Trades, Portfolio) with 0.36%, First Eagle Investment (Trades, Portfolio) with 0.34%, Joel Greenblatt (Trades, Portfolio) with 0.31%, Larry Robbins (Trades, Portfolio) with 0.18% and Donald Yacktman (Trades, Portfolio) with 0.14%.

Paulson reduced his position in Shire PLC ADR (NASDAQ:SHPG) by 10.14%. The transaction had an impact of -1.01% on the portfolio.

Shire is a specialty biopharmaceutical company that focuses on developing and marketing specialty medicines that address unmet patient needs. During the third quarter, product sales had a growth of 110% and total revenues increased 109%. The company reported an increase of 73% for non-GAAP operating income.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 0.57% and ROA of 0.26% are outperforming 75% of the companies in the Global Biotechnology industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.03 is far below the industry median of 82.39.

Spiros Segalas (Trades, Portfolio) is another notable shareholder of the company with 1.55% of outstanding shares, followed by Steve Mandel (Trades, Portfolio) with 0.56%, Daniel Loeb (Trades, Portfolio) with 0.3%, Andreas Halvorsen (Trades, Portfolio) with 0.25%, Lee Ainslie (Trades, Portfolio) with 0.19% and Leon Cooperman (Trades, Portfolio) with 0.12%.

Paulson reduced his position in Grifols SA ADR. (NASDAQ:GRFS) by 66.26%. The transaction had an impact of -0.85% on the portfolio.

Grifols is a specialty biopharmaceutical company that develops, manufactures and distributes a broad range of plasma derivative products. It operates in four business divisions: Bioscience, Diagnostic, Hospital and Raw Materials and Others.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROA of 16.04% and return on capital (ROC) of 5.69% are outperforming 86% of the companies in the Global Biotechnology industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.19 is far below the industry median of 83.29.

Another notable shareholder among the gurus is Ron Baron (Trades, Portfolio) with 0.01% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.01%.

The guru added to his position in Biogen Inc. (NASDAQ:BIIB) by 150.20%. The trade had an impact of 0.64% on the portfolio.

Biogen is a biopharmaceutical company that discovers, develops, manufactures and markets therapies for neurological, autoimmune and hematologic disorders. Total revenues increased 6% from the third quarter of a year before and third-quarter GAAP net income had an increase of 7%. The company reported a growth for 13% for GAAP diluted earnings per share.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 36.11% and ROA of 18.58% are outperforming 96% of the companies in the Global Biotechnology industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.66 is below the industry median of 83.29.

PRIMECAP Management (Trades, Portfolio) is the largest shareholder of the company among the gurus with 7.21% of outstanding shares, followed by Vanguard Health Care Fund (Trades, Portfolio) with 1.73%, Frank Sands (Trades, Portfolio) with 1.28%, Andreas Halvorsen (Trades, Portfolio) with 1%, Spiros Segalas (Trades, Portfolio) with 0.42%, First Eagle Investment (Trades, Portfolio) with 0.21% and Sarah Ketterer (Trades, Portfolio) with 0.19%.

The guru acquired 628,100 shares of eBay Inc. (NASDAQ:EBAY). The trade had an impact of 0.23% on the portfolio.

The company is an e-commerce platform and provides an online marketplace to sell goods. Its business segments are Marketplaces, Payments and Enterprise. During the third quarter, the company delivered good top- and bottom-line financial results in which net revenues increased 6% year over year and non-GAAP net income grew 4%.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 27.67% and ROA of 9.39% are outperforming 83% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.89 is slighlty above the industry median on 0.84.

The largest shareholder of the company among the gurus is Steve Mandel (Trades, Portfolio) with 2.97% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.76%, Jim Simons (Trades, Portfolio) with 0.49%, Pioneer Investments (Trades, Portfolio) with 0.48%, Joel Greenblatt (Trades, Portfolio) with 0.19%, First Eagle Investment (Trades, Portfolio) with 0.17% and George Soros (Trades, Portfolio) with 0.07%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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