In this article, we discuss the top 10 stock picks of billionaire John Paulson’s latest portfolio. If you want to see some more stocks in this selection, click Billionaire John Paulson’s Latest Portfolio: Top 5 Stock Picks.
John Paulson is an American billionaire hedge fund manager who is one of the biggest investors on Wall Street. He rose to fame in the midst of the financial crisis of 2007, when he leveraged credit default swaps to short the US subprime mortgage market. His firm became the talk of the investment world, and he personally encashed over $4 billion from this trade.
Before founding Paulson & Co in 1994, John Paulson worked at Boston Consulting Group, Odyssey Partners, Bear Stearns, and Gruss Partners LP over the course of his financial career. He believes in “event-driven” investment strategies, such as merger arbitrage, acquisitions, corporate spin-offs, and proxy battles.
In July 2020, Paulson announced that he would return external investments to shareholders and turn his hedge fund into a private family investment office. Of the $10.7 billion in assets managed by Paulson & Co in the beginning of 2020, most of the money came from the billionaire’s personal investments. He plans to remain an active stock trader despite not managing external funds anymore.
Paulson & Co’s $3.2 billion hedge fund focuses its investments in the materials, healthcare, finance, and energy sectors. In Q4 2021, the fund purchased 4 new stocks and sold out of 6 equities. The most notable stocks in John Paulson’s latest portfolio include Exxon Mobil Corporation (NYSE:XOM), Shell plc (NYSE:SHEL), and Baidu, Inc. (NASDAQ:BIDU), among others discussed in detail ahead.
Our Methodology
To select his top ten stock picks, we used the fourth quarter portfolio of billionaire John Paulson. We have ranked the list according to Paulson & Co’s stake value in each company.
Billionaire John Paulson’s Latest Portfolio: Top Stock Picks
10. Barrick Gold Corporation (NYSE:GOLD)
Paulson & Co’s Stake Value: $86,389,000
Percentage of Paulson & Co’s 13F Portfolio: 2.66%
Number of Hedge Fund Holders: 46
Barrick Gold Corporation (NYSE:GOLD) is a Toronto-based mining company that extracts and distributes gold, silver, and copper. The company has mining operations in Argentina, Canada, Chile, Dominican Republic, Mali, Saudi Arabia, Tanzania, the United States, and Zambia, among others.
Securities filings from December 2021 reveal that John Paulson’s Paulson & Co held 4.5 million shares of Barrick Gold Corporation (NYSE:GOLD), worth $86.3 million, representing 2.66% of the total 13F portfolio.
On April 13, TD Securities analyst Greg Barnes downgraded Barrick Gold Corporation (NYSE:GOLD) to Buy from Action List Buy with an unchanged price target of $31. He cut his rating to account for the recent share price appreciation and a higher political risk profile as the company is set to proceed with the Reko Diq project in collaboration with the Pakistan and Balochistan governments. Barrick Gold Corporation (NYSE:GOLD) expects the first production from the $7 billion Reko Diq project by 2027.
Barrick Gold Corporation (NYSE:GOLD) reported earnings for Q4 2021 on February 16, posting an EPS of $0.35, beating analysts’ estimates by $0.05. The $3.31 billion revenue outperformed market consensus by $113.09 million. The company also announced a share repurchase program of up to $1 billion. Barrick Gold Corporation (NYSE:GOLD) declared a $0.10 per share quarterly dividend, an 11.1% increase from its prior dividend of $0.09. The dividend was distributed on March 15.
Among the hedge funds tracked by Insider Monkey, 46 funds were bullish on Barrick Gold Corporation (NYSE:GOLD) at the end of the fourth quarter of 2021, compared to 41 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management held the biggest stake in the company, with 26.8 million shares worth $510.6 million.
In addition to Exxon Mobil Corporation (NYSE:XOM), Shell plc (NYSE:SHEL), and Baidu, Inc. (NASDAQ:BIDU), Barrick Gold Corporation (NYSE:GOLD) is a notable stock to invest in according to billionaire John Paulson.
Here is what GoodHaven Capital Management has to say about Barrick Gold Corporation (NYSE:GOLD) in their Q4 2020 investor letter:
“Barrick’s recent results have been consistent with our expectations. Barrick has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The company is now almost net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”
9. Thryv Holdings, Inc. (NASDAQ:THRY)
Paulson & Co’s Stake Value: $87,934,000
Percentage of Paulson & Co’s 13F Portfolio: 2.71%
Number of Hedge Fund Holders: 13
Thryv Holdings, Inc. (NASDAQ:THRY) is a Texas-based company that provides digital marketing solutions and SaaS tools to small and medium-sized businesses. John Paulson owns more than 2 million shares of Thryv Holdings, Inc. (NASDAQ:THRY) as of Q4 2021, worth close to $88 million, representing 2.71% of the total 13F holdings.
On March 2, B. Riley analyst Zach Cummins maintained a Buy recommendation on Thryv Holdings, Inc. (NASDAQ:THRY) but lowered the firm’s price target on the shares to $42 from $50 ahead of the fourth quarter results. The analyst contended that the slashed price target accounts for peer multiple contraction in the last few months and slightly lower adjusted EBITDA estimates.
Thryv Holdings, Inc. (NASDAQ:THRY) announced its December quarter earnings on March 10, posting an EPS of $1.30, above market consensus by $1.70. The $244.44 million revenue outperformed analysts’ estimates by $12.83 million. Thryv Holdings, Inc. (NASDAQ:THRY)’s 2022 guidance suggests that it is aiming for a $1 billion SaaS revenue by 2027, and $4 billion by 2032.
According to the Q4 database of Insider Monkey, 13 hedge funds held stakes in Thryv Holdings, Inc. (NASDAQ:THRY), collectively amounting to $653.4 million, compared to 17 funds in the earlier quarter, holding stakes in the company worth $566.6 million.
Here is what Laughing Water Capital has to say about Thryv Holdings, Inc. (NASDAQ:THRY) in its Q4 2021 investor letter:
“Thryv Holdings (THRY) owns the Yellow Pages, a clearly declining yet cash-gushing asset, which puts it firmly in the value camp. It also owns a profitable small business SAAS product that is growing 40%+ a year, which suggests it is a growth stock.
Thryv was introduced as company #2 in our Q1’21 letter. The company continues to execute on growing its nascent SAAS business while milking its legacy Yellow Pages business for cash flow. The company stock continues to suffer under the overhang of a large amount of stock in the hands of an investor who purchased shares during the company’s prior bankruptcy, and is presently reducing his position. In the positive column, this seller is selling in part to Thryv’s Chairman and CEO who has a long track record of creating value. I believe the signal value of this insider buying by the operator to be much higher than the signal value of the insider selling by a financial owner whose mandate is tied to distressed investing, not fast growing SAAS investing. With time this overhang will lift, and I expect we will be well rewarded for our patience.”
8. Pacira BioSciences, Inc. (NASDAQ:PCRX)
Paulson & Co’s Stake Value: $102,626,000
Percentage of Paulson & Co’s 13F Portfolio: 3.16%
Number of Hedge Fund Holders: 24
Pacira BioSciences, Inc. (NASDAQ:PCRX) was incorporated in 2006 and is headquartered in Tampa, Florida. The company provides pain management and regenerative health solutions in the United States. John Paulson’s Paulson & Co increased its stake in the company by 36%, holding 1.70 million shares worth $102.6 million. The stock accounts for 3.16% of the hedge fund’s total 13F holdings.
On February 24, the company published earnings for the fourth quarter of 2021. Pacira BioSciences, Inc. (NASDAQ:PCRX) reported an EPS of $0.97, exceeding market estimates by $0.14. Revenue for the period increased 21.55% year-over-year to $159.19 million, outperforming analysts’ predictions by $1.78 million.
Northland analyst Tim Chiang reiterated a Market Perform rating on Pacira BioSciences, Inc. (NASDAQ:PCRX) and raised the firm’s price target on the shares to $67 from $61 on March 1. The analyst updated his 2022 projections to account for Zilretta rebate changes, sales being more concentrated in the second half and lower estimated costs that will lead to higher FY22 adjusted EPS estimate.
According to Insider Monkey’s Q4 data, Pacira BioSciences, Inc. (NASDAQ:PCRX) was found in the portfolios of 24 hedge funds, and they collectively held stakes in the company worth $485.4 million. Renaissance Technologies is the biggest position holder in the company, with 1.84 million shares valued at $111.2 million.
7. Occidental Petroleum Corporation (NYSE:OXY)
Paulson & Co’s Stake Value: $108,713,000
Percentage of Paulson & Co’s 13F Portfolio: 3.35%
Number of Hedge Fund Holders: 58
Occidental Petroleum Corporation (NYSE:OXY) is a Texas-based company that develops oil and gas properties in the United States, the Middle East, Africa, and Latin America. The company distributes oil, condensate, natural gas liquids, natural gas, carbon dioxide, and petrochemicals. Occidental Petroleum Corporation (NYSE:OXY) is also involved in power generation. John Paulson’s latest portfolio holds 3.75 million shares of the company, worth $108.7 million, representing 3.35% of the total 13F investments.
In 2021, Occidental Petroleum Corporation (NYSE:OXY)’s full-year revenue came in at approximately $26 billion, compared to $17.8 billion in the preceding year. The net income of $2.3 billion in 2021 sharply rebounded from the $14.8 billion loss in 2020. Occidental Petroleum Corporation (NYSE:OXY)’s cash on hand also increased from $2 billion in 2020 to $2.76 billion in 2021.
On April 7, Piper Sandler analyst Ryan Todd upgraded Occidental Petroleum Corporation (NYSE:OXY) to Overweight from Neutral, raising the price target to $88 from $44. The analyst contended that Occidental Petroleum Corporation (NYSE:OXY) shares are “relatively inexpensive despite its year-to-date performance” and the company offers the greatest leverage in the sector to higher oil prices.
Occidental Petroleum Corporation (NYSE:OXY) declared on February 24 a $0.13 per share quarterly dividend, a 1200% increase from its earlier dividend of $0.01. The dividend will be distributed on April 15, to shareholders of the company at the close of business on March 10. Occidental Petroleum Corporation (NYSE:OXY) stock has gained 92.5% year-to-date.
Among the hedge funds tracked by Insider Monkey, Occidental Petroleum Corporation (NYSE:OXY) was found in the portfolios of 58 funds at the end of December 2021, compared to 60 funds in the earlier quarter. Carl Icahn’s Icahn Capital LP is the largest position holder in Occidental Petroleum Corporation (NYSE:OXY), with 45 million shares worth $1.30 billion.
Here is what Smead Capital Management has to say about Occidental Petroleum Corporation (NYSE:OXY) in its Q3 2021 investor letter:
“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”
6. Perpetua Resources Corp. (NASDAQ:PPTA)
Paulson & Co’s Stake Value: $117,665,000
Percentage of Paulson & Co’s 13F Portfolio: 3.62%
Number of Hedge Fund Holders: 9
Perpetua Resources Corp. (NASDAQ:PPTA) is a mineral exploration company based in Boise, Idaho, primarily exploring for gold and silver. John Paulson’s fund owns 24.7 million shares of Perpetua Resources Corp. (NASDAQ:PPTA), worth $117.6 million, representing 3.62% of the total 13F portfolio.
Among the hedge funds tracked by Insider Monkey, 9 funds were bullish on Perpetua Resources Corp. (NASDAQ:PPTA) at the end of December 2021, with stakes worth $145.1 million, compared to 8 funds in the prior quarter, holding stakes in Perpetua Resources Corp. (NASDAQ:PPTA) valued at $152 million. Peter Franklin Palmedo’s Sun Valley Gold owns the biggest position in the company, with more than 5 million shares worth $20.6 million.
Just like Exxon Mobil Corporation (NYSE:XOM), Shell plc (NYSE:SHEL), and Baidu, Inc. (NASDAQ:BIDU), Perpetua Resources Corp. (NASDAQ:PPTA) is on the radar of elite investors.
Click to continue reading and see Billionaire John Paulson’s Latest Portfolio: Top 5 Stock Picks.
Suggested articles:
- Top 10 Stocks Billionaire Mets Owner Steve Cohen Just Added to His Portfolio
- 10 Undervalued Stocks to Buy According to Billionaire Joel Greenblatt
- 10 Precious Metals Stocks to Buy According to Ken Fisher
Disclosure: None. Billionaire John Paulson’s Latest Portfolio: Top 10 Stock Picks is originally published on Insider Monkey.
