After losing 50% in his Advantage Plus Fund last year
primarily by overestimating the rate of the U.S. economy's
was down 10% in the first half of 2012. It has been a drastic
change from the 591% returns in the subprime crisis that
propelled him to the spotlight in 2007.
Paulson continues to like gold in the third quarter, as the SPDR
Gold Trust ETF (
) and Anglogold Ashanti Litd. (
) combined make up 38.7% of his portfolio. He also bought stock
in 15 new companies. The biggest new picks are MetroPCS
), Nexen Inc. (
), Shire Plc (
), Amerigroup Corp. (
) and Robbins & Myers Inc. (
MetroPCS Communications (
Paulson purchased 23.8 million shares of MetroPCS Communications
for $9 per share on average, giving him 6.55% of the company.
MetroPCS' stock price gained 17% year to date.
MetroPCS, the fifth largest facilities-based wireless broadband
provider in the U.S. with 9 million subscribers, offers service
plans to major metropolitan areas that are tax and regulatory-fee
inclusive. It is also one of the fastest growing wireless
broadband companies since launching in 2002.
In the company's second quarter results published July 26, it
reported to achieving a 6% year-over-year increase in
consolidated total revenues to $1.3 billion, and a 77%
year-over-year increase in net income to $149 million.
EBITDA reached a company peak of $477 million after a 33%
year-over-year increase. The results stemmed from the company's
focus on "generating adjusted EBITDA and cash flow versus
subscriber growth as we position for our anticipated launch of 4G
LTE For All by the end of the third quarter," said Roger
Lindquist, MetroPCS chairman and CEO. It will launch 4G LTE For
All late in the third quarter, which it hopes will return the
company to subscriber growth.
MetroPCS bears a P/E of 9.2, P/B of 1.1 and P/S of 0.8.
Nexen Inc. (
Paulson bought 6.05 million shares of Nexen Inc. for $23 per
share on average, taking a 1.3% weighting in his portfolio. The
company's share price gained 57% year to date, with a marked
surge in share price occurring in July.
An announcement that CNOOC Ltd. (
) would acquire Nexen accounted for the July jump in share price.
In the plan, NCOOC agreed to pay $27.50 per share in cash for
Nexen, a 61% premium to its July 20 share price. Both companies'
boards of directors have already given unanimous approval to the
transaction, slated to close in the fourth quarter of 2012.
Shire Plc (
Paulson purchased 1,370,800 shares of Shire Plc for $90 per share
on average. Its stock price has declined about 6% since June.
Shire develops treatments for people with life-altering health
conditions which it markets in 50 countries globally through its
three divisions: specialty pharmaceuticals, human genetic
therapies and regenerative medicine.
In the third quarter, Shire reported $1.1 billion in total
revenues, a 1% year-over-year increase. U.S. GAAP diluted
earnings per ADS were $1.19, a 17% year-over-year increase.
"Shire's business is progressing well. This quarter we grew Non
GAAP earnings per ADS by 6% after increasing our investment in
R&D by over 20% to fund our increasingly late stage pipeline.
We continue to generate strong cash flows (up 20% to over $350
million in the quarter), which will support our future growth,"
Angus Russell, Chief Executive Officer, commented in the
company's third quarter earnings release.
Shire expects earnings growth in the double digits for the
full-year 2012. It has a P/E of 13.9, close to a 10-year low; P/B
of 4.3, close to a three-year low; and P/S of 3.7.
SHPG data by GuruFocus.com
Amerigroup Corp. (
Paulson bought 1 million shares of Amerigroup for $88 per share
on average. The company's stock price has increased almost 55%
year to date, with a spike in July accounting for most of the
Amerigroup's stock price jumped in July due to an announcement
that it would be acquired by WellPoint, who will pay $92 per
share in cash for all of its outstanding shares, or $4.9 billion
total. Combined, the companies hope to form an industry leader in
the government sector serving Medicaid and Medicare patients.
Robbins & Myers Inc. (
Paulson bought 1 million shares of his fifth-largest new holding,
Robbins & Myers, for $52 per share on average. The company's
stock has increased 22.5% year to date primarily due to a spike
The August jump was a market reaction to the company announcing
National Oilwell Varco (
) would acquire it for $60 per share in cash, or $2.5 billion in
total. It expects to close the transaction in the fourth quarter
See John Paulson's other buys and sells in his portfolio here.
Also check out the undervalued stocks, top growth companies, and
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