Billionaire John Paulson made a strong comeback last year after suffering heavy losses from his healthcare bets in 2022. According to data from Bloomberg, Paulson’s funds returned about 32% in 2023, driven by gains from some of the best-performing mining, healthcare and financial stocks. Bloomberg also said that the 68-year-old billionaire, who is one of Donald Trump’s favorite candidates for the Treasury secretary role, was picking up momentum this year, with his funds gaining about $600 million in 2024 through mid-April.
Messy Divorce, Car Dealerships in Flames and Legal Battles
Paulson, worth about $3.5 billion, has been in the news for several reasons lately. He filed for divorce in 2021, and is still embroiled in the legal battle with his former wife. He recently got engaged to his 35-year-old girlfriend Alina de Almeida. Paulson is also busy in a legal battle with his former business partners as the billionaire’s car dealerships in Puerto Rico were damaged in multiple fire eruptions.
Billionaire John Paulson’s Legendary Track Record in the Investing World
But there’s more to Paulson that these scandals and controversies. He made a name (and wealth) for himself with his prescient stock-picking skills and wisdom. Paulson started warning about the subprime mortgage crisis back in 2006 and betting against the housing market. In the first nine months of 2007, Paulson’s Credit Opportunities funds jumped about 340%. Reports suggest that Paulson pocketed about $20 billion for himself and investors following the subprime mortgage bonds collapse.
A detailed report by journalist Anthony Effinger recalls one of Paulson’s letters to investors written just before the subprime mortgage crisis:
“We expect credit performance of subprime mortgages to continue to deteriorate,” Paulson told investors in his first-quarter report, sent out in April. By the U.S. summer, mortgage securities were in full retreat. Paulson’s Credit Opportunities funds soared in value, rising 75.7 percent in July and 26.5 percent in August.”
For this article we scanned Paulson & Co.’s Q1’2024 portfolio and picked top 9 metals & mining stocks Paulson is owning significant stakes in. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
9. Iamgold Corp (NYSE:IAG)
Billionaire John Paulson Q1’2024 Stake Value: $6,160,500
Canadian gold mining company Iamgold Corp (NYSE:IAG) is one of the best metals and mining stocks to buy according to billionaire John Paulson. Paulson’s hedge fund owns about 1.9 million shares of Iamgold Corp (NYSE:IAG) as of the end of the March quarter. The net worth of these stakes is $6.1 million.
Earlier this month Iamgold posted Q1 results. Adjusted EPS in the period came in at $0.11, surpassing estimates by $0.08. Revenue in the quarter jumped about 50% year over year to $338.9 million, beating estimates by $49.58 million.
Last year, Iamgold reported annual attributable production of about 465,000 ounces of gold, beating the mid-point of its guidance. Iamgold Corp’s (NYSE:IAG) guidance for 2024 impressed investors. Iamgold Corp’s (NYSE:IAG) Cote project is expected to produce over 250,000 ounces of gold.
8. Trilogy Metals Inc (NYSE:TMQ)
Billionaire John Paulson Q1’2024 Stake Value: $7,163,498
Canadian-based metals exploration company Trilogy Metals Inc (NYSE:TMQ) is a penny stock in billionaire John Paulson’s portfolio. The stock, which is up 15% so far this year, accounts for about 0.49% of the billionaire’s Q1 portfolio. The stock is falling as Trilogy Metals Inc (NYSE:TMQ) last month, after reporting a $3.6 million loss for the quarter ending February, raised going-concern doubts. The stock dived further after reports suggested the Department of Interior is planning to block the company’s access to Ambler Mining District.
As of the end of the first quarter of 2024, just five hedge funds out of the 919 hedge funds tracked by Insider Monkey reported owning stakes in Trilogy Metals Inc (NYSE:TMQ).
7. Equinox Gold Corp (NYSE:EQX)
Billionaire John Paulson Q1’2024 Stake Value: $15,050,000
Canadian-based mining company Equinox Gold Corp (NYSE:EQX) has been a rewarding investment for billionaire John Paulson, as the stock is up about 22% over the past one year. Paulson & Co. did not make any change to its position in Equinox Gold Corp (NYSE:EQX) during the first quarter, ending the period with a $15 million stake in Equinox Gold Corp (NYSE:EQX).
Earlier this month, Equinox Gold Corp (NYSE:EQX) reported first quarter results. Adjusted EPS in the quarter came in at -$0.04, beating estimates by $0.03. Revenue jumped 3.1% year over year $241.3 million, missing estimates by $25.7 million. Equinox Gold Corp (NYSE:EQX) produced 111,725 ounces of gold in the period. In 2024, Equinox Gold expects to produce 660,000 to 750,000 ounces of gold at cash costs of $1,340 to $1,445 per oz and AISC of $1,630 to $1,740 per oz.
6. Seabridge Gold Inc (NYSE:SA)
Billionaire John Paulson Q1’2024 Stake Value: $31,298,400
Seabridge Gold Inc (NYSE:SA) is another Canadian mining company in billionaire John Paulson’s Q1 portfolio. Paulson’s hedge fund owns a $313 million stake in Seabridge Gold Inc (NYSE:SA), which it first added to its portfolio back in the second quarter of 2017. The fund started adding to its position in Seabridge Gold Inc (NYSE:SA) in the fourth quarter of 2020 and kept buying more shares until mid-2021. Since then Paulson’s fund has held on to over 2 million company shares through the end of March 2024.
5. International Tower Hill Mines Ltd (NYSE:THM)
Billionaire John Paulson Q1’2024 Stake Value: $44,265,197
International Tower Hill Mines Ltd (NYSE:THM) is another mining penny stock in billionaire John Paulson’s Q1 portfolio. Paulson & Co owns a $44.3 million stake in International Tower Hill Mines Ltd (NYSE:THM) which has seen its stock price jump by 33% over the past one year. Paulson has been holding on to his stake in International Tower Hill Mines Ltd (NYSE:THM) for more than 12 years now. His fund upped its stake in International Tower Hill Mines Ltd (NYSE:THM) by 4% in the March quarter.
Of the 919 hedge funds in Insider Monkey’s database, just four hedge funds reported owning stakes in International Tower Hill Mines Ltd (NYSE:THM).
4. Agnico Eagle Mines Ltd (NYSE:AEM)
Billionaire John Paulson Q1’2024 Stake Value: $46,739,414
Canadian gold mining company Agnico Eagle Mines Ltd (NYSE:AEM) is one of the best mining stocks to buy according to billionaire John Paulson. Paulson & Co owns a $47 million stake in Agnico Eagle Mines Ltd (NYSE:AEM). The stock has a dividend yield of over 2.3% as of May 27.
In April, Agnico Eagle Mines Ltd (NYSE:AEM) reported strong Q1 results. Adjusted EPS in the quarter came in at $0.76, beating estimates by $0.16. Revenue in the quarter jumped 21.2% year over year to $1.83 billion, surpassing estimates by $50 million.
Agnico Eagle Mines Ltd (NYSE:AEM) is one of the most popular gold mining stocks among the over 900 hedge funds tracked by Insider Monkey. 46 hedge funds reported owning stakes in Agnico Eagle Mines Ltd (NYSE:AEM) as of the end of the March quarter, up from 43 hedge funds in the previous quarter.
3. Anglogold Ashanti PLC (NYSE:AU)
Billionaire John Paulson Q1’2024 Stake Value: $65,110,491
Gold mining company Anglogold Ashanti PLC (NYSE:AU) is another profitable investment of billionaire John Paulson, as the stock is up 33% so far this year. Paulson first bought a stake in Anglogold Ashanti PLC (NYSE:AU) back in the third quarter of 2023, amassing 3.83 million company shares. However, in the first quarter of 2024, Paulson cut his stake in Anglogold Ashanti PLC (NYSE:AU) by 24%.
As of the end of the first quarter of 2024, 15 hedge funds tracked by Insider Monkey had stakes in Anglogold Ashanti PLC (NYSE:AU). The most significant stake in Anglogold Ashanti PLC (NYSE:AU) is owned by
Last month UBS published a list of gold mining stocks it believes are undervalued and recommended investors to Overweight them. Anglogold Ashanti PLC (NYSE:AU) was one of them.
2. NovaGold Resources Inc (NYSE:NG)
Billionaire John Paulson Q1’2024 Stake Value: $81,714,183
Billionaire John Paulson has been holding stakes in NovaGold Resources Inc (NYSE:NG) for about 14 years now. As of the end of the first quarter of 2024, Paulson & Co. reported owning an $82 million stake in NovaGold Resources Inc (NYSE:NG).
For 2024, the mining company, which is working on the Donlin gold mine in Alaska, expects expenses of $31.2 million, including $14.3 million to fund the Donlin Gold project, and $16.9 million for corporate general and administrative costs.
Insider Monkey’s database of 919 hedge funds shows that 20 hedge funds reported owning stakes in NovaGold Resources Inc (NYSE:NG) as of the end of March. The biggest stakeholder of NovaGold Resources Inc (NYSE:NG) (after Paulson) is First Eagle Investment Management of Jean-Marie Eveillard which a $55 million stake.
1. Perpetua Resources Corp (NASDAQ:PPTA)
Billionaire John Paulson Q1’2024 Stake Value: $103,049,615
Idaho-based Perpetua Resources Corp (NASDAQ:PPTA) is one of the best-performing mining stocks in billionaire John Paulson’s portfolio. The mineral exploration company’s shares have gained more than 80% so far this year. The stock jumped last month after Perpetua Resources Corp (NASDAQ:PPTA) said it received a letter of interest from the U.S. Export-Import Bank for potential debt financing of as much as $1.8 billion to develop the Stibnite gold project in Idaho as an emerging national strategic asset for antimony production.
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Disclosure: None. This article is originally published at Insider Monkey.
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