Caesars casino drop affecting Paulson

Caesars Entertainment Corp dipped almost 11 percent as lenders exited talks over restructuring its largest unit. The casino operator has declined -38.16 percent  this year, weighing down the investment portfolios of Leon Cooperman, John Paulson and George Soros.

Paulson Recovery Fund to be renamed Paulson Special Situations Fund

Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan. 1, 2015, after concluding that the five-year-old U.S. recovery has matured.

Amendments to the fund’s mandate will render it more similar to Paulson’s event-driven Advantage funds, which wager on the outcomes of takeovers, spinoffs and corporate bankruptcies. Existing investors have been offered the chance to redeem their shares in light of the changes.

Paul sticks with GLD and Gold miners

John Paulson’s hedge fund, Paulson & Co., maintained its stake in the SPDR Gold Shares during the third quarter even as gold prices have declined recently. Paulson & Co., the largest GLD shareholder, made no adjustments to its GLD position for a fifth consecutive quarter.

At the end of the third quarter, Paulson owned over 10.2 million shares of GLD. GLD is Paulson’s second-largest equity position behind Irish pharmaceuticals firm Shire.

In addition to GLD, during Q3 Paulson also maintained stakes in gold miners, including Randgold Resources, Agnico-Eagle Mines, Gold Fields, Sibanye Gold and IAMGOLD.

John Paulson cites high risk reward potential on deals such as Shire

While the risks in these investments are higher than the risks of announced deals, we attempt to mitigate the downside by choosing targets that trade at discounted valuations and that could rise even if no takeover occurs, as well as by either partially or fully hedging the market exposure by shorting sector ETF's and/or individual stocks against the longs. Although the risk is greater and the outcomes are less certain, the rewards can be high.

Shire withdrawal hurts Paulson

Hedge fund billionaire John Paulson is getting whacked on his hedge fund's largest equity investment, the biotech company Shire. 

Shire plunged 23% in London, the Chicago-based pharmaceutical company AbbVie said it was reconsidering its $55 billion takeover bid of the Ireland-based Shire, Reuters reported.

Paulson still wants AbbVie to pursue its takeover of Shire. He owns 13 million shares of AbbVie.

"We believe this transaction creates enormous value for AbbVie shareholders. The combination is both strategic and accretive regardless of the tax considerations," the fund said in a statement emailed to Business Insider. "As a large AbbVie shareholder we hope the Abbvie Board reaffirms its commitment to the transaction after its review."

Merger arbitrage is Paulson's main specialty. 

Paulson owns MGIC and Radian

Billionaire John Paulson’s hedge fund firm is among the top five investors in MGIC and Radian, with combined stakes valued at about $300 million. Paulson & Co. also controls 1.8 percent of Genworth Financial Inc. (GNW:US), which sells life insurance and long-term care coverage in addition to mortgage guarantees. 

MGIC and Radian have said the proposed private mortgage insurer eligibility requirements, or PMIERs, are too strict and threaten to make home loans less affordable. Essent and NMI have praised the rules, saying the industry needs the financial strength to withstand another housing crash. 

Family Dollar bidding could help John Paulson

Dollar General had always been seen by some on Wall Street as the more natural buyer of Family Dollar until Dollar General’s CEO Rick Dreiling said in June that he would resign within a year. But Dreiling has now said he will stay on as CEO until May 2016. 

The winners of a bidding war for Family Dollar are its biggest shareholders, which include hedge funds run by billionaires Nelson Peltz and John Paulson. Carl Icahn is also a large shareholder.

Paulson gets $1 billion from sale of OneWest Bank

John Paulson’s hedge funds made almost $1 billion on his investment in OneWest Bank, which is being purchased by CIT Group Inc. (CIT) for $3.4 billion in cash and stock.

The $21.4 billion Paulson & Co. owns the investment through its Recovery Fund, which was created in October 2008, and a credit pool, according to a memo sent to clients. The funds spent $400 million to purchase a 24.9 percent stake in Pasadena, California-based OneWest in 2009. The sale values that stake at $788 million and Paulson also received $551 million in dividends. The total gain for the funds is $939 million.

The transaction will take six to nine months to close and Paulson & Co. will be restricted from trading the stock for six months, the firm wrote in the memo.

OneWest marks a big win for Paulson & Co.’s two funds this year, which have extended last year’s rebounds. The Paulson Recovery Fund is up 4.5 percent in 2014 after advancing 63 percent last year. The Paulson Credit Opportunities Fund climbed 8.9 percent this year after gaining 22 percent in 2013. 

Paulson funds performance helped by Greek Banks

Gains in Greek banks' shares gave billionaire investor John Paulson's $3.2 billion Recovery Funds a lift during the first quarter, and future returns are expected to keep climbing as the housing and real estate markets continue to recover.

The Recovery Fund LP gained 5.58 percent in the first three months of 2014, thanks in part to strong returns on Greece's Alpha Bank and Piraeus Bank, Paulson told investors in his latest funds update, which was seen by Reuters.

John Paulson increases stake in Mallinckrodt

John Paulson’s Paulson & Co increased its stakes in Mallinckrodt PLC (MNK) by 13%, spending more than $57 million in stock. 

Between May 7 and May 9, 2014 the fund acquired 786,207 ordinary shares, at prices ranging from $72.91 per share to $76.99, and now owns more than 6.72 million shares –up from 5.94 million held previously.

John Paulson's top small cap holdings

Houghton Mifflin Harcourt Co. is Paulson's largest small cap holding, with his 30.9 million shares worth $524 million. His investment in the $2.9 billion market cap education solutions provider, which makes him the largest shareholder, was a new one during the fourth quarter of 2013. Other investors with a bullish view on the stock include Geoffrey Raynor of Q Investments (Spector Holdings), Marc Lasry of Avenue Capital and Kevin Ulrich of Anchorage Advisors.

Paulson's second largest small cap stock holding is Cablevision Systems Corp, with a 21.0 million share position valued at $377 million. His 7.8% stake in the $4.8 billion market cap cable system operator makes him its fifth largest shareholder overall, joining other bullish investors such as Casey Gard of Calypso Capital Management, Richard Patton of Courage Capital and Eric Semier of TCS Capital Management.

Third on the list is Oasis Petroleum Inc., with Paulson's 7.4 million shares worth approximately $348 million. He increased his stake in the $4.4 billion market cap independent oil and natural gas E&P (exploration and production) company more than seven-fold during the fourth quarter. Other shareholders include Vince Maddi and Shawn Brennan of SIR Capital Management, Paul Jasinkiewicz of Jasinkiewicz Capital Management and Anthony Giammalva of Sound Energy Partners.

Mallinckrodt PLC is Paulson's fourth largest small cap stock position, with a 5.6 million share stake valued at $295 million. The Dublin-based pharmaceutical company, with a market cap of $3.7 billion, has been in his portfolio since the third quarter of 2013. Other hedge fund managers who own the stock include Alex Denner of Sarissa Capital Management, Stephen Dubois of Camber Capital Management and Roberto Mignone of Bridger Management.

Paulson's fifth largest small cap holding is Kodiak Oil and Gas Corp, in which he owns 26.0 million shares worth approximately $291 million. He is the largest shareholder of the $3.4 billion market cap company, which is engaged in the acquisition, exploration, exploitation, development and production of crude oil and natural gas in the Rocky Mountain region. Other hedge fund managers that own the stock include Ken Griffin of Citadel Investment Group, Israel Englander of Millennium Management and Phill Gross and Robert Atchinson of Adage Capital Management.

John Paulson raises stakes in Puerto Rico

John Paulson, the famous founder of Paulson & Co., is looking to expand his investment in Puerto Rico to $1 billion by the end of 2015. Paulson with an estimated worth of $11 billion already invested $260 million earlier this year to create two luxury resorts San Juan’s Condado district. This investment comes on the heels of his investment in the St. Regis Bahia Beach Resort and the Bahia Beach Resort & Gold Club last year.

via http://www.valuewalk.com/2014/04/john-paulson-others-flocking-puerto-rico/

John Paulson owns the following in his US portfolio

Extended Stay America (STAY): According to public filings STAY is Paulson's largest position at almost 10 percent of his US long portfolio.

Houghton Mifflin Harcourt (HMHC): HMHC is 3.38% of Paulson's long US equities portfolio.

Caesars Acquisition Company (CACQ): CACQ is a 0.96% of the US long portfolio stake established this quarter.

Others:
Santarus Inc. (SNTS)
American Airlines Group (AAL)
Compuware Corporation (CPWR)
Digital Realty (DLR)

John Paulson is bullish stocks

Hedgefund genius John Paulson in an interview early 2014 says, 

“The U.S. economy hasn’t taken off. It’s doing OK. I’m hopeful that growth will pick up -- we are somewhere in the middle of the cycle.”

Paulson, who runs the $20 billion Paulson & Co., said one reason to be optimistic about equities is that the economy is just in the middle of its current growth cycle. His Recovery Fund, which buys stakes in companies that he expects to profit from an improving economy, climbed 63 percent last year. His Recovery Fund was No. 3 in Bloomberg’s ranking.


via http://www.sfgate.com/business/bloomberg/article/Altman-Leads-Hedge-Fund-Managers-Betting-Stock-5161405.php

John Paulson European unit increased profits

John Paulson Europe, a Jermyn Street-based subsidiary of Wall Street firm Paulson & Co, increased turnover by 14 per cent from £13.3m to £15.2m for the year ending March 2013, reversing a 32 per cent decline in 2012.

While still lower than the £26.5m profit in 2011-12, Paulson’s European comeback comes amid a better performance across its suite of funds.

The accounts, filed at Companies House, show two Paulson partners left the company last year, with both Nikolai Petchenikov and Mina Herrmann exiting the business in December and May 2012 respectively.

The highest paid member of the partnership for 2013 was paid nearly £2m

- Via  http://www.cityam.com/article/1389313783/paulson-heals-european-trades-post-return-form

John Paulson backed OneWest seeking buyer

OneWest Bank FSB, the lender backed by John Paulson and George Soros, is working with Goldman Sachs Group Inc. to find a buyer as it also prepares for an initial public offering, people with knowledge of the matter said.

OneWest, which was known as IndyMac Bancorp Inc. before its 2008 failure, has begun reaching out to potential buyers and plans to solicit bids in the next two months, said the people, who asked not to be identified because the matter is not public. If it cannot find a buyer it will file for an IPO, possibly in the second quarter, the people said.

The lender had $3.8 billion in tangible equity at the end of September, filings show. At that size, its acquisition would be the largest of a U.S. Bank since Capital One Financial Corp. acquired ING Groep NV’s online lender for $9.1 billion in 2011, according to data compiled by Bloomberg. With U.S. regulators wary of letting lenders grow too large, takeovers by banks in the country have stalled since the credit crisis.

John Paulson owns Allied Nevada shares

John Paulson owns 1.5 million Allied Nevada shares (0.04% of his portfolio).

A Chinese mining company opened a cash tender offer for all common Allied Nevada shares and related stock purchase rights. China Gold Stone will pay $7.50 in cash for each share of the Nevada-based gold producer. The tender offer will expire midnight on January 24th.

John Paulson vs Sheldon Adelson

The firms of hedge fund legends George Soros, John Paulson and Leon Cooperman have quietly turned into big shareholders of Caesars Acquisition Co., a spinoff from casino company Caesars Entertainment that has a stake in Caesars' Internet gambling operations.

What's particularly noteworthy about the quintet's position is that it puts them in opposition to casino titan Sheldon Adelson, CEO of Las Vegas Sands, according to the magazine.

While the famous five are investing in online gambling, Adelson opposes it. He likely views it as a threat to his casinos. Adelson tells Forbes he will "spend whatever it takes" to halt online gambling in the United States.

And he has brought on political heavyweights such as former New York Gov. George Pataki to lead his lobbying push. "There is no reason to put a casino on everybody's kitchen table, in the bed of every young person, whether they are underage or of age, or on mobile phones," Adelson explains. "I don't want people to get addicted."

via -http://www.moneynews.com/InvestingAnalysis/Soros-Paulson-Adelson-gambling/2014/01/09/id/546119