In this article, we discuss the top 5 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 10 Stock Picks.
5. AngloGold Ashanti Limited (NYSE:AU)
Paulson & Co’s Stake Value: $125,341,000
Percentage of Paulson & Co’s 13F Portfolio: 3.86%
Number of Hedge Fund Holders: 15
John Paulson’s Paulson & Co owned approximately 6 million shares of AngloGold Ashanti Limited (NYSE:AU) in the fourth quarter of 2021, worth $125.3 million, representing 3.86% of the hedge fund’s total securities. AngloGold Ashanti Limited (NYSE:AU) is a gold mining company based in Johannesburg, South Africa, with operations in Africa, the Americas, and Australia.
On March 9, AngloGold Ashanti (NYSE:AU) declared a semi-annual dividend per share of $0.145. The dividend was distributed on April 4, to shareholders of the company as of March 11. On April 13, AngloGold Ashanti (NYSE:AU)’s dividend yield stood at 2.81%.
Deutsche Bank analyst Liam Fitzpatrick maintained a Buy rating on AngloGold Ashanti (NYSE:AU) and raised the firm’s price target on the stock to $28 from $24 on March 10. According to the analyst, commodity markets are facing an “unprecedented supply shock” as a result of the Ukraine war. Western sanctions against Russia could lead to higher investments in the American commodities space, the analyst added.
According to the hedge funds tracked by Insider Monkey, 15 funds placed long calls on AngloGold Ashanti (NYSE:AU) at the end of Q4 2021, up from 10 funds in the previous quarter. AQR Capital Management is a leading stakeholder of the company, with 5.4 million shares worth $114 million.
4. NovaGold Resources Inc. (NYSE:NG)
Paulson & Co’s Stake Value: $152,472,000
Percentage of Paulson & Co’s 13F Portfolio: 4.70%
Number of Hedge Fund Holders: 18
NovaGold Resources Inc. (NYSE:NG) is a Canadian company that owns and develops gold mineral properties in the United States. John Paulson’s Paulson & Co held 22.2 million shares of NovaGold Resources Inc. (NYSE:NG) in the fourth quarter of 2021, worth $152.4 million, representing 4.70% of the hedge fund’s total 13F portfolio.
On February 7, RBC Capital analyst Michael Siperco assumed coverage of NovaGold Resources Inc. (NYSE:NG) with a Sector Perform rating and an $8.00 price target. The analyst is positive on the top quality deposits and the likelihood of over 1 million oz per year production for the company’s Donlin project for the next 30 years. However, he maintains a “more conservative” long-term gold price projection of $1,500 per oz.
According to Insider Monkey’s Q4 data, 18 hedge funds were bullish on NovaGold Resources Inc. (NYSE:NG), up from 16 funds in the previous quarter. First Eagle Investment Management is a prominent stakeholder of the company, with 11.5 million shares worth $79.5 million.
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.”
2. Horizon Therapeutics Public Limited Company (NASDAQ:HZNP)
Paulson & Co’s Stake Value: $646,560,000
Percentage of Paulson & Co’s 13F Portfolio: 19.93%
Number of Hedge Fund Holders: 58
Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) is a biotech company that develops medication for rare, autoimmune, and inflammatory diseases. John Paulson owns 6 million shares of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) as of Q4 2021, worth $646.5 million, representing 19.93% of the billionaire’s total holdings.
On March 1, Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) reported its Q4 financial results, posting earnings per share of $1.41, beating estimates by $0.06. Revenue for the quarter increased 36.11% year-over-year to $1.01 billion, surpassing market consensus by $18.57 million.
Oppenheimer analyst Leland Gershell initiated coverage of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) on March 14 with an Outperform rating and a $140 price target. The analyst contended that the company’s core products, Tepezza and Krystexxa, have “significant sales growth potential” for thyroid eye disease and chronic refractory gout. He also sees potential for Uplizna as the “preferred therapy” for neuromyelitis optica spectrum disorders.
Among the hedge funds tracked by Insider Monkey, 58 funds were long Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) in the December quarter, with collective stakes amounting to $4.46 billion. Kurt Von Emster’s VenBio Select Advisor is the leading shareholder of the company, with 9.2 million shares worth more than $1 billion.
Here is what Carillon Tower Advisers has to say about Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) in their Q1 2021 investor letter:
“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 & 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.”
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