John Paulson and Eric Mindich are Bullish About These Stocks

John Paulson is currently one of the most followed money managers in the world. He founded Paulson & Co in 1994, and became well-known for his bets against subprime mortgages in 2007, which made him $3.5 billion. He made another $5 billion in 2010 by betting on gold. Though his Advantage Plus Fund did not perform well this year, it still returned around 19% annually since inception.

Paulson is graduated from Harvard. So is Eric Mindich. The founder of Eton Park Capital Management is a BA in Economics of Harvard. Before founding his own hedge fund in 2004, he spent 15 years at Goldman Sachs, leading the equities risk arbitrage business of Goldman as well as managing Goldman’s equities division. He is also the youngest partner ever in the history of Goldman Sachs: he became the partner in 1994 when he was only 27.

largest hedge funds in the world

Both Paulson and Mindich are among the smartest investors in the world. We believe that by focusing on their stock picks, investors will be able to beat the market in the long term. Here we compiled a list of stocks both hedge fund managers are bullish about.

Company Name Ticker Paulson Mindich
CITIGROUP INC C 661043 121823
MOTOROLA MOB WI MMI 340020 83116
RALCORP HOLDINGS INC NEW RAH 248097 61230
JPMORGAN CHASE & CO JPM 172942 72649
NEWS CORP NWSA 81991 400673
MEDCO HEALTH SOLUTIONS INC MHS 32823 148126

Among the stocks listed above, the biggest position in Paulson’s portfolio is Citigroup Inc (C). At the end of September, Paulson & Co invested $661 million in C stocks and Eton Park also had $122 million worth of C. Since then, the stock returned 1.72%, lower than the 7.59% for SPY. Bill Ackman’s Pershing Square also had nearly $700 million invested in C shares at the end of September.

Another financial stock both Paulson and Mindich are bullish about is JPMorgan Chase & Co (JPM). As of September 30, Paulson & Co reported to own $173 million of JPM and Eton Part disclosed owning $73 million of JPM shares. The stock returned 5.53% since the end of the third quarter. Lee Ainslie is also bullish about JPM. His Maverick Capital had more than $200 million invested in JPM at the end of September.

News Corp (NWSA) is the largest position in Eton Park’s portfolio among the stocks on the list above. At the end of the third quarter, Eton Park had $400+ million invested in NWSA and Paulson & Co had $82 million worth of NWSA shares. Since the end of September, NWSA returned 10.72%, beating the market by more than 3 percentage points.

Over the third quarter, both Paulson and Mindich opened new position in Motorola Mobility Holdings (MMI). Paulson initiated a brand new $340 million worth of MMI and Mindich bought $83 million worth of MMI stocks. MMI returned 2.65% so far in the fourth quarter.

Other stocks both Paulson and Mindich are bullish about include Ralcopr Holdings Inc (RAH) and Medco Health Solutions Inc (MHS). Both stocks outperformed the market in the fourth quarter and generated double-digit returns. We like Mindich’s investment style. His merger sensibilities helped tripling the size of Eton Park in only seven years. We also like Paulson, who recently told his investors in an investor letter that he has adjusted his portfolio towards stocks with lower risk profiles and better prospects. We encourage investors to focus on the stocks both managers are in favor of and do in-depth research on these stocks for their own portfolio.

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

Reign of Terror: The 10 Most Ruthless Politicians in History

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

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!