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

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1. Bausch Health Companies Inc. (NYSE:BHC)

Paulson & Co’s Stake Value: $713,416,000

Percentage of Paulson & Co’s 13F Portfolio: 21.99%

Number of Hedge Fund Holders: 53

Bausch Health Companies Inc. (NYSE:BHC) is a Canadian company that produces pharmaceutical drugs, medical devices, and over-the-counter products primarily for eye health, gastroenterology, and dermatology. Bausch Health Companies Inc. (NYSE:BHC) plans to reduce company debt by $200 million via its senior secured term loans on March 31, 2022.

Securities filings reveal that John Paulson’s Paulson & Co held approximately 26 million shares of Bausch Health Companies Inc. (NYSE:BHC) in the fourth quarter of 2021, worth $713.4 million, representing 21.99% of the total 13F holdings. 

On February 1, RBC Capital analyst Douglas Miehm maintained an Outperform rating on Bausch Health Companies Inc. (NYSE:BHC) but lowered the firm’s price target on the shares to $34 from $40. The analyst noted that despite the recent share price weakness, he remains “constructive” on Bausch Health Companies Inc. (NYSE:BHC)’s outlook.

Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 53 funds reported owning stakes in Bausch Health Companies Inc. (NYSE:BHC), compared to 39 funds in the earlier quarter. Icahn Capital LP is the leading shareholder of the company, with 34.7 million shares worth $958.65 million. 

Here is what Miller Value Partners has to say about Bausch Health Companies Inc. (NYSE:BHC) in its Q1 2021 investor letter:

“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 disclosed 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 look at 10 Real Estate Stocks to Buy Now According to Charles Fitzgerlad’s V3 Capital and 10 Consumer Staples Stocks To Buy According To Billionaire Ray Dalio

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