Here’s How Billionaire John Paulson Traded Valeant and His Other Top Stock Picks Last Quarter

#3 Time Warner Cable Inc. (NYSE:TWC)

 – Shares Owned by Paulson & Co. (as of September 30): 8.12 Million

 – Value of Holding (as of September 30): $1.46 Billion

Paulson & Co.’s position in Time Warner Cable Inc. (NYSE:TWC) was untouched during the bloody third quarter at 8.12 million shares. Charter Communications Inc. (NASDAQ:CHTR) recently asserted that its acquisition of TWC is expected to be finalized in the first quarter of 2016, with the $78.7 billion cash-and-stock deal still awaiting federal regulatory approval. The aforementioned deal, which had previously been expected to close by the end of 2015, is subject to meticulous regulatory scrutiny, as it is set to create the leading broadband services and technology company. Some believe that the Charter-TWC merger is not in the best interests of the public and should be denied as a result. Just recently, DISH Network Corp (NASDAQ:DISH) filed a petition that asked the Federal Communications Commission (FCC) to deny the merger, mentioning that both competitors and consumers would suffer should it go through. Eric W. Mandelblatt’s Soroban Capital Partners reported owning 7.62 million shares in Time Warner Cable Inc. (NYSE:TWC) through the latest round of 13F filings.

#2 Valeant Pharmaceuticals Intl Inc. (NYSE:VRX)

 – Shares Owned by Paulson & Co. (as of September 30): 8.89 Million

 – Value of Holding (as of September 30): $1.59 Billion

John Paulson’s firm decreased its position in the highly-scrutinized Valeant Pharmaceuticals Intl Inc. (NYSE:VRX) by 110,000 shares during the third quarter. The pharmaceutical company had a terrible third quarter in terms of stock performance, while the fourth quarter has turned out to be even worse thus far. The shares of the company are 50% in the red year-to-date, as investors’ growing concerns about Valeant’s business model have put significant weight on the stock. Investors worry that Valeant may not succeed in sustaining its growth levels without pursuing mergers and acquisitions and raising the prices of the drugs the company acquires. Even more to that, some investors are also skeptical about Valeant’s recent financial figures. On the other hand, the stock may represent a great buying opportunity if considering its forward price-to-earnings ratio of 4.71, which is substantially below the median of 17.25 for the S&P 500 (assuming that analysts’ earnings expectations are accurate). Bill Ackman’s Pershing Square suffered significant losses on its investment in Valeant Pharmaceuticals Intl Inc. (NYSE:VRX) during the third quarter, as it owns 19.47 million shares as of September 30.

#1 Allergan PLC (NYSE:AGN)

 – Shares Owned by Paulson & Co. (as of September 30): 7.18 Million

 – Value of Holding (as of September 30): $1.95 Million

Allergan PLC (NYSE:AGN) was the largest equity holding of billionaire John Paulson at the end of the September quarter, representing 10.13% of the fund’s portfolio value on September 30. Paulson & Co. increased its position in the pharmaceutical giant by a mere 7,800 shares during the three-month period. According to a recent article published by Bloomberg, Dan Loeb of Third Point believes that a merger between Allergan and Amgen Inc. (NASDAQ:AMGN) is quite possible and could unlock multiple channels for growth. Loeb suggested that the healthcare sell-off that occurred during the third quarter made a potential investment in Allergan even more attractive, but also asserted that Allergan’s growth potential makes the company stand out from the crowd. Just recently, Mizuho reiterated its ‘Buy’ rating on the stock and raised its price target to $340 from $337, which yields an upside of 14%. Allergan PLC (NYSE:AGN) was the third-largest equity holding of Dan Loeb at the end of the third quarter (read more details).

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