John Paulson doesn’t really have a good track record of stock picking. He made his billions by shorting the housing market and by buying physical gold. At the Ira Sohn Conference John Paulson recommended a long position in AngloGold (AU) because of its cheap valuation. We have a different take on this stock. Since the beginning of 2006 gold prices tripled whereas AngloGold lost nearly 45% of its value. Given John Paulson’s recent track record, this may be an excellent short candidate.
Paulson also recommended Caesars Entertainment Corp (CZR). This recommendation doesn’t make sense. Paulson had only $182 million invested in this stock at the end of March, whereas he had $1.35 billion in AU. We don’t think this is one of Paulson’s highest conviction stock picks.