Paulson & Co. is an investment firm based out of New York, New York, United States. It is headed by the hedge fund investor Mr. John Paulson, and the firm is renowned for having bet against the subprime mortgage market in the U.S. before the devastating market crash in 2008.
Mr. Paulson is an American hedge fund billionaire who was born in 1955. He has more than three decades of experience in the financial sector, which has enabled him to amass massive fortunes in the process. The executive has a painful past and is one of the few in the industry who has served in the United States Army. Mr. Paulson was orphaned in his early teens following which he moved to the U.S. from Ecuador. During his service in the U.S. Army, he fought in World War II against Nazi Germany.
The executive started his career journey in sales but decided to switch careers after becoming uncomfortable with the volatile income. In order to switch gears, he enrolled at New York University to pursue a degree in finance. He worked hard and graduated at the top of his class in 1978. Immediately after he graduated, the prestigious Harvard Business School would open its doors for him, and Mr. Paulson would receive his Master in Business Administration (MBA) from one of the world’s top business schools in 1980.
As soon as he graduated from Harvard, Mr. Paulson jumped into the financial world. His first stint saw him start out as a researcher, after which he worked with a mutual fund and an investment bank, both of which are now defunct.
His journey at Paulson & Co. would start in 1994 when he set up the firm with a mere $1 million in capital and two employees. Within a decade, the firm would grow its assets by several orders of magnitude through a portfolio worth $300 million in 2003. Mr. Paulson is currently serving as the president of his hedge fund, and the firm itself is a partnership with more than ten partners that manage eight hedge funds. The bulk of its invested capital is in-house, however, it also offers its services to customers such as financial institutions and public pension funds.
While nearing three decades in the industry, Paulson & Co.’s first true success came when Mr. Paulson bet against the U.S. subprime mortgage market in 2007. This resulted in the firm making massive returns as the market crashed, with its $12.5 billion raking it a whopping $15 billion. Emboldened by his success, Mr. Paulson would go ahead and bet almost a billion pounds against British banks the next year, which then resulted in him earning more than a quarter of a million pounds.
By the end of 2021, the hedge firm’s portfolio was worth $3 billion. Some of the top holdings in Mr. Paulson’s gaze are Bausch Health Companies Inc. (NYSE:BHC), Barrick Gold Corporation (NYSE:GOLD), and NovaGold Resources Inc. (NYSE:NG).
John Paulson of Paulson & Co
Our Methodology
In order to sift out Paulson & Co.’s top mining stocks, we took a look at the firm’s filings with the Securities and Exchange Commission for the fourth quarter of last year. After selecting the companies, they were analyzed through their earnings reports, analyst coverage, investor letters, and hedge fund sentiment gathered through Insider Monkey’s survey of 924 funds for the fourth quarter of 2021.
Mining Stocks to Buy Today According to John Paulson’s Paulson & Co
10. Equinox Gold Corp. (NYSE:EQX)
Paulson & Co’s Stake Value: $16.9 million
Percentage of Paulson & Co’s 13F Portfolio: 0.52%
Number of Hedge Fund Holders: 14
Equinox Gold Corp. (NYSE:EQX) is a Canadian firm that is responsible for acquiring, developing, and operating mineral exploration sites. The company focuses its operations primarily on mining gold and silver deposits that are present in Brazil, the United States, and Mexico.
For its fiscal fourth quarter, Equinox Gold Corp. reported $381 million in revenue and $0.25 in non-TAAP EPS. Its revenue demonstrated an impressive 49% annual growth for the quarter. Stifel lowered the company’s price target to CAD$17 from CAD$20 in February 2022 but kept a Buy rating on the shares.
Mr. Paulson’s hedge fund owned 2.5 million Equinox Gold Corp. shares by the end of December 2021. These were worth $16.9 million and they represented 0.52% of the firm’s investment portfolio. During the same time period, 14 of the 924 hedge funds part of Insider Monkey’s research had invested in the firm.
Equinox Gold Corp.’s largest investor is Eric Sprott’s Sprott Asset Management which owns 5.2 million shares worth $35 million.
Equinox Gold Corp. is a favorite Paulson & Co. stock, joining the likes of Barrick Gold Corporation, Bausch Health Companies Inc., and NovaGold Resources Inc..
9. Trilogy Metals Inc. (NYSE:TMQ)
Paulson & Co’s Stake Value: $23 million
Percentage of Paulson & Co’s 13F Portfolio: 0.72%
Number of Hedge Fund Holders: 8
Trilogy Metals Inc. (NYSE:TMQ) is a Canadian metals explorer headquartered in Toronto. The company operates in the United States. It focuses on mining sulfide and copper, with the latter being crucial for manufacturing batteries for electric vehicles.
Paulson & Co. owned 14 million Trilogy Metals Inc. shares by the end of the fourth quarter of last year. These were worth $23 million and the stake represented 0.72% of its investment portfolio. Insider Monkey’s survey of 924 hedge fund holdings for Q4 2021 revealed that 8 had also owned stakes in the company.
Trilogy Metals Inc. reported -$0.03 in non-GAAP EPS for its first fiscal quarter, as it failed to meet analyst estimates. For the same time period, the company also reported $4.8 million in cash and equivalents, alongside a working capital of $4.3 million. Raymond James lowered the company’s price target to CAD$3 from CAD$3.75 in February 2022 alongside keeping an Outperform rating on the shares.
8. Seabridge Gold Inc. (NYSE:SA)
Paulson & Co’s Stake Value: $34 million
Percentage of Paulson & Co’s 13F Portfolio: 1.05%
Number of Hedge Fund Holders: 13
Seabridge Gold Inc. (NYSE:SA) is yet another Canadian gold explorer. In addition to gold, the company also focuses its attention on other minerals such as copper, silver, rhenium, and molybdenum. Its exploration properties are located in Canada, the United States, and the Canadian territory of Yukon.
By the end of the fourth quarter of last year, Paulson & Co. held a $34 million stake in Seabridge Gold Inc.. This came through the hedge fund owning 2 million shares and it represented a mere 1.05% of its investment portfolio. Insider Monkey took a look at the portfolios of 924 hedge funds for the same time period and discovered that 13 had also held a stake in the minerals exploration firm.
Seabridge Gold Inc. posted -CAD$0.01 in GAAP EPS for its fiscal third quarter. It also reported CAD$36 million in working capital for the same time period, marking a CAD$5 million increase over the previous year’s quarter.
David Iben’s Kopernik Global Investors is Seabridge Gold Inc.’s largest investor, edging past Paulson & Co. with a $47 million stake that comes courtesy of 2.8 million shares.
7. SSR Mining Inc. (NASDAQ:SSRM)
Paulson & Co’s Stake Value: $34 million
Percentage of Paulson & Co’s 13F Portfolio: 1.05%
Number of Hedge Fund Holders: 18
SSR Mining Inc. (NASDAQ:SSRM) is an American company that is involved in the acquisition, development, and operations of mining properties located in the U.S. and in Turkey. It owns the Cöpler Gold mine in Turkey, the Marigold mine in America, and others in Argentine and Canada.
For its fourth fiscal quarter, SSR Mining Inc. managed to rake in $407 million in revenue and $0.46 in non-GAAP EPS, for a strong set of results that saw it beat analyst estimates for both metrics. The National Bank increased the company’s price target to CAD$30 from CAD$27.50 in March 2022, stating that the company has stable production and valuable exploration upside.
Mr. Paulson’s investment firm owned 3.1 million SSR Mining Inc. shares by the end of Q4 2021. These were worth $34 million and represented 1.05% of the company’s investment portfolio. Insider Monkey’s survey of 924 hedge funds for the same time period revealed that 18 had owned the company’s shares.
Palm Valley Capital Management mentioned the company in its fourth quarter 2021 investor letter. Here is what the fund said:
“During the fourth quarter we took advantage of weakness in the precious metal and energy sectors to acquire two small new positions that we believe are selling at attractive prices relative to their strong, asset heavy balance sheets. During the quarter we sold SSR Mining (ticker: SSRM). We exited SSR Mining after the shares appreciated above our fair value estimate.”
6. International Tower Hill Mines Ltd. (NYSE:THM)
Paulson & Co’s Stake Value: $34 million
Percentage of Paulson & Co’s 13F Portfolio: 1.05%
Number of Hedge Fund Holders: 4
International Tower Hill Mines Ltd. (NYSE:THM) is a Canadian company headquartered in Vancouver. It is responsible for acquiring, developing, and operating mineral properties. It has the rights to a gold project covering thousands of hectares in Alaska.
Paulson & Co.’s fourth quarter of 2021 stake in International Tower Hill Mines Ltd. was equal to $34 million. It came in the form of 61 million shares and represented 1.05% of the company’s investment portfolio. Insider Monkey’s Q4 2021 research covering 924 hedge funds revealed that 4 had also invested in the company.
International Tower Hill Mines Ltd. reported -$0.03 in GAAP EPS for its fiscal year 2020. For the same time period, the company had $7.78 million in cash and equivalent. This marked a roughly $5.5 million drop during the year.
Eric Sprott’s Sprott Asset Management is International Tower Hill Mines Ltd.’s largest investor after Paulson & Co. It has a $57 million stake that comes via owning 61 million shares.
Along with Bausch Health Companies Inc., Barrick Gold Corporation, and NovaGold Resources Inc., International Tower Hill Mines Ltd. is one of Paulson & Co.’s top stock pick.
5. APA Corporation (NASDAQ:APA)
Paulson & Co’s Stake Value: $80 million
Percentage of Paulson & Co’s 13F Portfolio: 2.48%
Number of Hedge Fund Holders: 42
APA Corporation (NASDAQ:APA) is an oil and gas miner headquartered in Texas, United States. The company has facilities in the U.S., U.K., and in Egypt. Additionally, it also has a presence in the South American country of Suriname.
Mr. Paulson’s hedge fund owned 3 million APA Corporation shares by the end of the fourth quarter of last year. This translated into an $80 million stake which represented 2.48% of the firm’s investment portfolio. During the same time period, 42 of the 924 hedge funds polled by Insider Monkey had invested in the firm.
APA Corporation earned $2.3 billion in revenue and $1.29 in non-GAAP in its fourth fiscal quarter, missing analyst EPS estimates but beating them for revenue. Barclays set a $53 price target for the company in April 2022, as it reinstated coverage.
APA Corporation’s largest investor is Natixis Global Asset Management’s Harris Associates which owns 19 million shares worth $514 million.
Ariel Investments mentioned the company in its fourth quarter 2021 investor letter. Here is what the firm said:
“We continue to believe recent aggressive fiscal and monetary policy will drive high levels of intransient (rather than transitory) inflation. Recent inflation numbers have exceeded our hawkish predictions. While we believed the Consumer Price Index might rise +4% in 2021, double the Fed target of +2%; it rose +7%, the highest level in forty years. Ariel Focus Fund has been well positioned for this environment as natural resource and material companies such as APA Corporation (APA) which returned +90.76% for the year. This was one of our two largest holdings at year-end and have performed well very early into 2022.”
4. Barrick Gold Corporation (NYSE:GOLD)
Paulson & Co’s Stake Value: $86 million
Percentage of Paulson & Co’s 13F Portfolio: 2.66%
Number of Hedge Fund Holders: 46
Barrick Gold Corporation is a Canadian gold mining company headquartered in Toronto. It has interests in gold mines in a variety of countries such as Canada, Argentina, the Dominican Republic, Mali, Tanzania, and the U.S.
For its fiscal Q4, Barrick Gold Corporation raked in $3.3 billion in revenue and $0.35 GAAP EPS for a strong set of results that pleased Wall Street by beating analyst estimates for both metrics. Jefferies raised its price target to $24 from $23 in March 2022, outlining that the mining market is ready to enter a bull year.
Paulson & Co. held 4.5 million Barrick Gold Corporation shares worth $86 million as the fourth quarter of last year came to an end. The stake represented 2.66% of its portfolio. Insider Monkey’s Q4 2021 survey of 924 hedge funds revealed that 46 had held a stake in the company.
Jean-Marie Eveillard’s First Eagle Investment Management is Barrick Gold Corporation’s largest investor, holding a $510 million stake that comes through 26 million shares.
3. Perpetua Resources Corp. (NASDAQ:PPTA)
Paulson & Co’s Stake Value: $117 million
Percentage of Paulson & Co’s 13F Portfolio: 3.62%
Number of Hedge Fund Holders: 9
Perpetua Resources Corp. (NASDAQ:PPTA) is an American company involved in mineral exploration in the United States. It owns a gold project in Valley County, Idaho, and is involved in the exploration of gold, silver, and antimony.
As Q4 2021 came to an end, Mr. Paulson’s hedge fund held a $117 million stake in Perpetua Resources Corp. via owning 24 million shares. During the same time period, 9 of the 924 hedge funds polled by Insider Monkey had invested in the firm.
Perpetua Resources Corp. reported $35.9 million net loss by the end of its fiscal year 2021, marking a significant drop over the $220 million net loss that it reported the year prior. B. Riley set a $22 price target for the company in April 2022, stating that the company’s gold project in Idaho is the strongest in the industry and that its share price does not account for this.
After Paulson & Co., Peter Franklin Palmedo’s Sun Valley Gold is Perpetua Resources Corp.’s largest investor. It has a $20 million stake that comes through holding 5 million shares.
2. AngloGold Ashanti Limited (NYSE:AU)
Paulson & Co’s Stake Value: $125 million
Percentage of Paulson & Co’s 13F Portfolio: 3.86%
Number of Hedge Fund Holders: 15
AngloGold Ashanti Limited (NYSE:AU) is a South African gold mining company headquartered in Johannesburg. It has a mining project in Tanzania, and in addition to gold, the firm is also involved with silver and sulphuric acid.
For its fiscal H1, AngloGold Ashanti reported $2 billion in revenue and $0.59 in non-GAAP EPS. This marked a 16% annual drop in the company’s revenue. Deutsche Bank raised its price target to $28 from $24 in March 2022, as it outlined that if the sanctions against Russia are sustained, they could lead to greater interest in the American mining industry.
Paulson & Co.’s stake in AngloGold Ashanti Limited was equal to $125 million by the end of 2021’s final quarter. This came through the firm owning 5.9 million shares and it represented 3.86% of its investment portfolio. Insider Monkey scanned 924 hedge fund portfolios for Q4 2021 and discovered that 15 contained the company’s stock.
AngloGold Ashanti Limited’s largest investor after Paulson & Co. is Cliff Asness’s AQR Capital Management which owns 5.4 million shares worth $114 million.
1. NovaGold Resources Inc. (NYSE:NG)
Paulson & Co’s Stake Value: $152 million
Percentage of Paulson & Co’s 13F Portfolio: 4.7%
Number of Hedge Fund Holders: 18
NovaGold Resources Inc. is a Candian company involved in the exploration and development of gold properties in the United States. The company has a project in Alaska that covers tens of thousands of acres.
By Q4 2021 end, Mr. Paulson’s hedge fund owned 22 million NovaGold Resources Inc. shares which were worth $152 million and represented 4.7% of its investment portfolio. Insider Monkey’s survey of 924 hedge funds for the same time period revealed that 18 had invested in the company.
NovaGold Resources Inc. posted -$0.03 in GAAP EPS for its fiscal first quarter, meeting analyst estimates for the metric. During the same time period, the company had $155 million in cash and term deposits.
After Paulson & Co., Jean-Marie Eveillard’s First Eagle Investment Management is NovaGold Resources Inc. largest investor, holding 11 million shares worth $79 million.
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This article is originally published at Insider Monkey.
