's hedge fund, Paulson & Co., best known for record-breaking
profits in the financial crisis, stood out last year for its poor
performance. His Paulson Advantage fund ended 2011 down 35%, and
his Paulson Advantage Plus fund was down 53%, a year in which
hedge funds were down 5% on average.
Seeking to reverse the losses, Paulson bought 13 new stocks in
the first quarter. The largest new buys were: Caesars
), Novellus Systems (
), Covidien Plc (
), Abovenet Inc. (
) and Thomas & Betts (
Caesar's Entertainment, a gaming and casino company, became 1.2%
of Paulson's portfolio in the first quarter. He bought 12,37,835
shares at an average price of X. Paulson gave his long case for
Caesar's at the Ira Sohn conference on Wednesday, saying he
estimates the stock could go up to $138.
"Because the company had been bought out by private equity, and
has recently returned to markets, it is a highly leveraged
structure where debt has been restructured in such a way that
there are no payments until 2015," Paulson said, according to
Paulson also bought 2 million shares of Novellus Systems, which
manufactures, markets and services advanced deposition and
surface preparation equipment for advanced integrated circuits,
as well as 1.8 million shares of Covidien, which is engaged in
the development, manufacture and sale of healthcare products for
use in clinical and home settings.
Abovenet Inc. is a fixed line telecommunications company of which
he bought 1 million shares. Thomas & Betts, a manufacturer of
connectors and components for worldwide electrical and
electronics markets, was his fifth-largest holding, of which he
bought 1 million shares.
He also bought 1 million shares of Viacom (
), one of
's new holdings.
updated portfolio here
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