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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
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

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!