Paulson & Co. is a New York-based investment management firm. The company was founded in 1994 by John Alfred Paulson. The firm is considered among the most profitable investment firms of all time and it is famous for its event-driven buying and selling strategies. The strategies operate in order to achieve the end goals like low market correlations, above-average returns, and preservation of the capital.
The company has headquartered in New York and offices in Hong Kong and London. The company has more than 162 employees. The existing Asset Under Management is less than $6 billion. The company provides services to banking or similar institutions and pooled investment vehicles.
Paulson & Co. is a partnership firm registered with the US Securities & Exchange Commission. The Paulson Europe LLP is an affiliated entity which operates under the Financial Conduct Authority in the United Kingdom.
1. John Alfred Paulson
John Paulson is a famous hedge fund manager and founder and President of the Paulson & Co. He also acts as the Portfolio Manager and Director as well as CEO of the company. John Paulson is the brain behind all investment strategies used by the firm.
He oversees the operation of the entire firm and selects the best clients and manages the investment allocations for them. Under his leadership, Paulson & Co. has earned many accolades including Management Firm of the Year in 2013.
2. Christopher Alan Bodak
Christopher Alan Bodak works as a Chief Financial Officer as well as the Financial and Operations Principals at Paulson & Co. He has been working with Paulson & Co. since September 2001. He also works as the Chief Financial Officer at Paulson Management LP. He owns less than 5% of the company shares. He is responsible for financial planning and investment management.
3. Linda Forish
Linda Florish serves as the Chief Operating Officer and the Senior Vice President of Risk Management at Paulson &Co.Inc. She became the Senior VP in 2011 and COO in 2016. She oversees all the administrative activities. As a senior VP, she is also responsible for managing financial risks and ensuring the overall budget of the company.
4. Andrew Hoine
Andrew Hoine acts as the Director of Research at Paulson & Co. Inc. and Paulson Management LP. He has a great experience in acquisitions and mergers hence are also works as the co-portfolio manager.
5. Stuart Leslie Merzer
Stuart Leslie Merzer works as the Chief Compliance Officer, Managing Director, and General Counsel at Paulson & Co, Inc since 2003. He is responsible for handling and managing all activities in the firm.
Paulson & Co. primarily use event-driven trading strategies which include distressed credit, merger arbitrage, structured credit, bankruptcy reorganization, restructuring, recapitalization, etc. These strategies are entirely based on the phenomenon of exploiting the inefficiencies in the market prior as well as after the occurrence of an event.
Paulson & Co. began its journey with just $2 million investment. At its peak in 2011, the company handled more than $36 billion in assets under management. The company came to light in 2007 when it made a great fortune against subprime mortgages.
It earned more than $15 billion and got a return of over 100%. In recent years the company has reported double-digit losses in majority of its larger funds. Now the company AUM has been reduced to just $6 billion which is nothing but John Paulson’s own money.
The latest portfolio value of Paulson & Co. is about $4.17 billion. The company is trading on 51 stocks out of which 13 are new stocks. The company is trading in USA, Canada, Great Britain and Israel with 11.48 % total turnover. Their top five holdings are Shire PLC (SHPG) with 12.72 % shares, SPDR Gold Trust (GLD) with 12.55% shares, Bausch Health Companies Inc (BHC) with 9.22% shares, Mylan NV (MYL) with 7.22% shares and Discovery Inc (DISCK) with 6.48% shares.
The trading of Paulson & Co. is majorly focused on the healthcare sector with 40.39% of the total trading. The least focused trading sector is Energy with only 0.14% or the total trading. The company also heavily trades in sectors like Consumer Cyclical, Basic Materials, Communication Services, and Technology.
According to the latest 13F filing, Paulson & Co. has opened 13 new positions out of which the top five new positions are: Red Hat Inc(RHT) with the share value of $662,510, Travelport Worldwide Ltd (TVPT)with the share value of $554,51, ImpervaInc (IMPV) with the share value of $339,71, Tribune Media Co (TRCO) with the share value of $254,130 shares and Stewart Information Services Corp (STC) with $248,400.
The company started this financial quarter with the portfolio value of 5,341,499 and so far it has been dropped to 4,174,293. Hence, the turnover has been dropped from 15.13 % to 11.48 %.