Here Are The Changes Paulson & Co. Made To Its Portfolio To Recover After a Bad 2016

Harman International Industries Inc (NYSE:HAR)

– Shares Held By Paulson & Co. (as of December 31): 853,800

– Value of The Holding (as of December 31): $94.91 Million

Harman International Industries Inc (NYSE:HAR) also made its debut in Paulson & Co. equity portfolio during the fourth quarter, but isn’t expected to remain there for long. Late last year, tech major Samsung announced that it had agreed to acquire Harman International Industries Inc (NYSE:HAR) for $112 per share following which shares of the latter spiked. Currently, Harman’s stock is trading flat for 2017 and very close to the price that Samsung is offering, suggesting that most market participants believe that the deal will close soon. Since Harman’s stock trades at a forward P/E multiple of less than 15 currently, a lot of analysts think that Samsung is acquiring the company for a reasonable valuation.

Time Warner Inc (NYSE:TWX)

– Shares Held By Paulson & Co. (as of December 31): 2.85 Million

– Value of The Holding (as of December 31): $275.68 Million

Similarly to the previously-discussed two stocks, Time Warner Inc (NYSE:TWX) was also added to Paulson & Co.’s equity portfolio during the fourth quarter. Moreover, Like Harman International Industries, Time Warner Inc (NYSE:TWX) also became a takeover target in that quarter when AT&T Inc. (NYSE:T) announced that it would acquire Time Warner for $85.4 billion or $107.50 per share in a half-cash, half-stock deal. Although Time Warner’s stock has moved up by over 20% since that announcement, it is still trading at a considerable discount to the offer price. On February 15, Time Warner’s shareholders approved this merger. However, a lot of market participants are still skeptical about the deal going through due to the regulatory hurdles it faces. On February 9, a day after Time Warner reported better-than-expected fourth quarter numbers, analysts at Drexel Hamilton downgraded the stock to ‘Hold’ from ‘Buy’.