Billionaire John Paulson’s Latest Portfolio: Top 5 Stock Picks

3. BrightSphere Investment Group Inc. (NYSE:BSIG)

Paulson & Co’s Stake Value: $229,123,000

Percentage of Paulson & Co’s 13F Portfolio: 7.06%

Number of Hedge Fund Holders: 32

BrightSphere Investment Group Inc. (NYSE:BSIG) is a Boston-based asset management holding company. John Paulson’s hedge fund, as of the fourth quarter of 2021, owns 8.95 million shares worth more than $229 million. The stock represents 7.06% of the total Q4 portfolio. 

On March 9, BrightSphere Investment Group Inc. (NYSE:BSIG) declared a $0.01 per share quarterly dividend, in line with previous. The dividend was paid on March 25, to shareholders of the company as of March 11. 

In 2021, BrightSphere Investment Group Inc. (NYSE:BSIG)’s full-year revenue stood at approximately $521 million, compared to $495 million in the previous year. BrightSphere Investment Group Inc. (NYSE:BSIG)’s net income in 2021 came in at $828.4 million, a year-over-year increase of 189%. 

Morgan Stanley analyst Michael Cyprys on April 8 maintained an Equal Weight rating on BrightSphere Investment Group Inc. (NYSE:BSIG) and lowered the firm’s price target on the shares to $27 from $29. The analyst is extremely cautious on traditional asset managers amid a “challenging macro backdrop”, and he expects pressure flows and lower AUM levels and earnings. He added that he favors “defensive” exchanges and “rate sensitive” brokers in the current market. 

According to the fourth quarter database of Insider Monkey, 32 hedge funds held BrightSphere Investment Group Inc. (NYSE:BSIG) in their stock portfolios, compared to 30 funds in the last quarter. After Paulson & Co, Arrowstreet Capital is a prominent stakeholder of the company, with 1.23 million shares worth $31.5 million. 

Here is what Third Avenue Management has to say about Brightsphere Investment Group Inc. in its Q2 2021 investor letter:

“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.”