In this article, we will discuss billionaire John Paulson’s 5 biggest stock picks. If you want to see our detailed analysis of Paulson’s history, investment philosophy, and hedge fund performance, go directly to Billionaire John Paulson’s 10 Biggest Stock Picks.
5. DiDi Global Inc. (NYSE:DIDI)
Paulson’s Stake Value: $156.7 million
Percentage of John Paulson’s 13F Portfolio: 3.74%
Number of Hedge Fund Holders: 46
DiDi Global Inc. (NYSE:DIDI) operates as a passenger transportation company based in Beijing, China. Known as the “Uber of China”, DiDi Global Inc. (NYSE:DIDI) comes in at fifth on the list of billionaire John Paulson’s 10 biggest stock picks, providing ride hailing and other shared mobility services. Shares of DiDi Global Inc. (NYSE:DIDI) increased by more than 6% in September after Beijing’s City Government was reportedly looking to invest in the transportation company.
In the second quarter of 2021, John Paulson’s Paulson & Co. held more than 11 million shares of DiDi Global Inc. (NYSE:DIDI), amounting to more than $156.6 million in worth and representing 3.74% of the fund’s portfolio. By the end of the second quarter of 2021, 46 hedge funds out of the 873 tracked by Insider Monkey held stakes in DiDi Global Inc. (NYSE:DIDI) worth roughly $924.7 million.
On September 13, investment advisory firm CZ Equity Research raised the price target on DiDi Global Inc. (NYSE:DIDI) to $12.33 from $8.55, and kept a Buy rating on the shares.
4. NovaGold Resources Inc. (NYSE:NG)
Paulson’s Stake Value: $178 million
Percentage of John Paulson’s 13F Portfolio: 4.25%
Number of Hedge Fund Holders: 18
NovaGold Resources Inc. (NYSE:NG) ranks fourth on our list of billionaire John Paulson’s 10 biggest stock picks. Operating as a mining company, NovaGold Resources Inc. (NYSE:NG) is focused on the exploration and development of gold mining properties, with an increasing interest in the Donlin gold mine in Alaska.
For the second quarter of 2021, John Paulson’s hedge fund held more than 22.2 million shares of NovaGold Resources Inc. (NYSE:NG), amounting to more than $178 million in worth and representing 4.25% of the fund’s portfolio. By the end of the second quarter of 2021, 18 hedge funds out of the 873 tracked by Insider Monkey held stakes in NovaGold Resources Inc. (NYSE:NG) worth roughly $292 million, up from 15 hedge funds in the preceding quarter with stakes worth approximately $310 million.
NovaGold Reources Inc. (NYSE:NG) reported its second quarter earnings per share at -$0.03, in-line with the estimated EPS for that quarter. Additionally, the company received $75 million from Newmont Corporation (NYSE:NEM) according to their Share Purchase Agreement established in 2018, with an additional $25 million expected in July of 2023.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is one of the leading shareholders in NovaGold Resources Inc. (NYSE:NG), with over 11.5 million shares worth more than $92 million.
3. BrightSphere Investment Group Inc. (NYSE:BSIG)
Paulson’s Stake Value: $468.6 million
Percentage of John Paulson’s 13F Portfolio: 11.2%
Number of Hedge Fund Holders: 29
BrightSphere Investment Group Inc. (NYSE: BSIG) operates as an asset management firm. The Boston-based company was founded in 1980 and stands third on the list of billionaire John Paulson’s 10 biggest stock picks. The company has a market capitalization of $2.09 billion, and its shares are up 74.15% over the last 12 months.
Paulson & Co. held over 20 million shares of $468.6 million BrightSphere Investment Group Inc. (NYSE:BSIG) by the end of the second quarter of 2021, representing 11.19% of the the fund’s total portfolio value. By the end of the second quarter of 2021, 29 hedge funds out of the 873 tracked by Insider Monkey held stakes in BrightSphere Investment Group Inc. (NYSE:BSIG) worth around $775.7 million, up from 26 hedge funds in the previous quarter with stakes worth over $642 million.
On July 29, BrightSphere Investment Group Inc. (NYSE:BSIG) issued its quarterly earnings report for the second quarter of 2021, with a reported EPS at $0.40, crossing market estimates by $0.08. The revenue for the quarter came in at $133.40 million, surpassing estimates by $10.15 million.
On April 9, BofA analyst Michael Carrier upgraded BrightSphere Investment Group to “Buy” from “Neutral” with a price target of $27, up from $22.
Third Avenue Management, in its second quarter 2021 investor letter, mentioned BrightSphere Investment Group Inc. (NYSE:BSIG). Here is what the fund had to say:
“The time-arbitrage/special-situations bucket predominantly comprises other out-of-favor, misunderstood companies such as BrightSphere. This company is cyclical and currently out of favor, but given its strong financial positions, Fund Management believes they have the luxury of time and capital to invest and grow until the clouds dissipate.”
2. Horizon Therapeutics Public Limited Company (NASDAQ:HZNP)
Paulson’s Stake Value:$748.3 million
Percentage of John Paulson’s 13F Portfolio: 17.9%
Number of Hedge Fund Holders: 56
Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) is a biopharmaceutical company engaged in the research and development of medicines for rheumatic and rare diseases. It is ranked second on our list of billionaire John Paulson’s 10 biggest stock picks. The stock has returned over 41.32% to investors over the course of the past year.
The company posted its quarterly earnings report for the second quarter of 2021 on August 4, reporting earnings per share of $1.62, beating estimates by $0.75. The revenue over the period was around $833 million, up 79.90% year-over-year.
According to the recent 13F Filings, John Paulson’s Paulson & Co. held over 7.99 million shares of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), worth more than $748.3 million, accounting for 17.87% of the fund’s investment portfolio. At the end of the second quarter of 2021, 56 hedge funds in the database of Insider Monkey held stakes worth $4.3 billion in Horizon Therapeutics Public Limited Company (NASDAQ:HZNP). This is compared to 48 hedge funds in the previous quarter that held stakes worth roughly $4.1 billion.
On August 5, BMO Capital reiterated its Outperform rating on Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) and boosted its price target to $132 from $118, following the company’s strong second quarter results.
Carillon Tower Advisers, in their Q1 2021 investor letter, explains the position of Horizon Therapeutics Public Limited Company (NASDAQ: HZNP)’s Tepezza product. Here is what the fund said:
“Horizon Therapeutics is a biopharmaceutical company whose primary focus is research, development, and marketing of late-stage pharmaceutical products. After experiencing some unfortunate manufacturing hiccups in the later stages of 2020 for its key product Tepezza, which is used in the treatment of thyroid eye disease, the company recently received positive news that should relieve their supply issues going forward. With manufacturing of Tepezza back online after being forced to halt due to Operation Warp Speed’s COVID-19 vaccine production orders, Horizon expects patient treatments to resume in mid-April.”
1. Bausch Health Companies Inc. (NYSE:BHC)
Paulson’s Stake Value: $757.6 million
Percentage of John Paulson’s 13F Portfolio: 18.09%
Number of Hedge Fund Holders: 45
Bausch Health Companies Inc. (NYSE:BHC) is a Canadian multinational pharmaceutical company focused on the development and sales of medications used in the fields of neurology, dermatology and treatment of other infectious diseases. The Healthcare company ranks first on the list of billionaire John Paulson’s 10 biggest stock picks.
On September 21, investment advisory JPMorgan maintained an Overweight rating on Bausch Health Companies Inc. (NYSE:BHC) stock with a price target of $38.
According to the second quarter data, Paulson & Co. holds more than 25.8 million share of Bausch Health Companies Inc. (NYSE:BHC), amounting to $757.6 million and representing 18.09% of the investment fund’s portfolio. At the end of the second quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $3.9 billion in Bausch Health Companies Inc. (NYSE:BHC), up from 42 in the preceding quarter worth $4 billion.
For the second quarter of 2021, Bausch Health Companies Inc. (NYSE:BHC) reported an EPS of $0.97, beating market predictions by $0.01.
In its Q1 2021 investor letter, Miller Value Partners, an asset management firm, highlighted Bausch Health Companies Inc. (NYSE:BHC)’s growth throughout the period. Here is what the fund said:
“Bausch Health Companies (BHC) climbed 55% during the period. Glenview (6% owner) sent a letter to the company in early February arguing the company has not acted to unlock shareholder value and urging the company to sell its eye care business. Shortly after, activist investor Carl Icahn disclosing a 7.83% stake in the company. The company responded to the filing saying that they remain committed to splitting the business into two parts, but are open to pursuing all opportunities. The company reported strong 4Q results with better-than-expected 2021 guidance. 4Q revenue came in at $2,213M slightly ahead of consensus of $2,165M and EPS of $1.34 beat consensus of $1.12. The company guided for 2021 revenue of $8.6-8.8B coming in ahead of expectations of $8.55B with EBITDA of $3.4-3.55B ahead of $3.46B estimated. The company announced the transition of Paul Herendeen to an advisory role to be succeeded by Sam Eldessouky, previously senior vice president, controller and chief accounting officer. Finally, the company announced the sale of Amoun Pharmaceutical for $740M, which was relatively in line with estimates and should help support debt reduction targets ahead of the planned spin-off of Bausch + Lomb eye care business.”
You can also take a peek at 10 Cheap Small-Cap Stocks to Buy and 10 Penny Stocks with Upcoming Growth Catalysts.
