Billionaire John Paulson’s Shakeups: Sprint Nextel Corporation (S), Freeport-McMoRan Copper & Gold Inc. (FCX), Delphi Automotive PLC (DLPH)

Page 1 of 2

Billionaire John Paulson manages one of the world’s largest hedge funds, Paulson & Co., with around $29 billion in assets under management. Paulson focuses on event and distressed strategies. After reviewing John Paulson’s latest buys and sells from the fourth quarter, here are a few things that stuck out (see all the stocks Paulson owns).

Paulson’s New Additions
One of Paulson’s new additions includes SPRINT NEXTEL CORP (NYSE:S)Sprint Nextel Corporation (NYSE:S). The hedge fund now owns 127 million shares, and it is Paulson’s third largest holding. Sprint has been busy of late, having Softbank take a 70% stake for $20.1 billion, then using that capital to make a bid for the remaining shares of Clearwire it doesn’t already own (see how Dish is shaking up the Clearwire deal).
The valuation for Sprint Nextel Corporation (NYSE:S) is also rather compelling. Although Sprint doesn’t offer investors a 5% dividend yield that other major telecoms AT&T and Verizon offer, it does appear to offer investors the potential for price appreciation assuming it can complete its Clearwire acquisition and build out its spectrum, which will in turn should allow the company the ability to trade more in-line on with major peers. As of now the telecom trades well below its peers:
Price to Sales Ratio
AT&T 1.7
Verizon 1.2
Sprint 0.5
Cablevision Systems Corporation (NYSE:CVC) was one of Paulson’s big increases, upping his stake 478% and putting the cable system operator as twenty-first in his portfolio. Cablevision is the fifth largest U.S. cable system operator, offering cable, internet and voice services to nearly 3.2 million subscribers in New York City and certain Western states.

However, Cablevision has seen significant stock pressure following Hurricane Sandy…

There is still the possibility that the super-storm could impact 2013 subscriber growth, which has in part lead to the stock’s fall. Yet, the company pays a nice dividend yield at 4.3% and has increased its dividend payments by roughly 16% annually over the last three years.

Paulson sold off 46% of his Delphi Automotive PLC (NYSE:DLPH) stake during the fourth quarter, dropping the stock from third in his portfolio to tenth. Delphi Automotive PLC (NYSE:DLPH) is a great play on the rebounding auto industry (see other derivative plays), so why the selloff by Paulson? Well, it is likely that it is partly due to the run up in its stock price, up over 30% during the last twelve months.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!