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/