Insider Trading: John Paulson’s Paulson & Co Reduced Its Position In $ACAS

John Paulson’s Paulson & Co recently reduced its position in American Capital, Ltd. (ACAS). Paulson & Co was ACAS’ insider and the largest hedge fund shareholder in the second quarter. The firm had 43.73 million shares of ACAS in its portfolio at the end of June. ACAS had a good performance in the first half of 2011. But the stock slumped in the third quarter and has realized a loss of 14% year to date. According to the Form 4 filing on October 4th, John Paulson began his disposal on September 27th right after the stock dropped below its January’s price level. He made 11 insider sales towards ACAS as the stock went all the way down. The selling price ranged from $7.74 to $6.11. After the transactions, Paulson & Co now has 2.14 million shares remaining in his portfolio.

PAULSON & CO

Beside John Paulson’s Paulson & Co, in total eighteen hedge funds had ACAS in their portfolios in the second quarter. Michael Novogratz’s Fortress Investment Group had a smaller position, with 13.40 million shares after a 15% increase. SAC Capital’s subsidiary Sigma Capital Management had 2.92 million shares, and Steven Cohen’s SAC Capital Advisors had 1.97 million shares.

Paulson & Co was started in 1994 by John Paulson, who became famous for his bets against subprime mortgages. Before that he was relatively unknown and pursuing a merger arbitrage strategy with mediocre returns. In 2010, he made $5 Billion by betting on gold. John Paulson is not a great stock picker. His strength is in macro-themed investments. He doesn’t pick a single or a couple of stocks from a sector. He picks a bunch of stocks from each sector in which he invests.

American Capital, Ltd. is a private equity and venture capital firm in the Asset Management Industry. According to Yahoo! Finance, the firm is “specializing in management and employee buyouts, mezzanine, acquisition, recapitalization, middle market, and growth capital investments”. It also invests in special situations and in government.

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 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!