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Bausch Health Companies Inc. (BHC): Among Billionaire John Paulson’s Stocks with Huge Upside Potential

We recently published a list of Billionaire John Paulson’s 10 Stocks with Huge Upside Potential. In this article, we are going to take a look at where Bausch Health Companies Inc. (NYSE:BHC) stands against other stocks with huge upside potential.

John Alfred Paulson is an American billionaire hedge fund manager who founded Paulson & Co. in 1994. It is a New York-based fund management firm that specializes in private equity and hedge funds. Paulson graduated as valedictorian of his class with a summa cum laude distinction in finance from NYU’s College of Business and Public Administration in 1978. He also pursued an MBA at Harvard Business School as a George F. Baker Scholar, which is a prestigious recognition awarded to the top 5% of his class. It’s supported by the Sidney J. Weinberg/Goldman Sachs scholarship, which he earned in 1980. With a client base of 20, the firm’s latest 13F filing for Q4 2024 revealed ~$1.65 billion in managed 13F securities and a top 10 holdings concentration of 98.55%.

The firm is known for its expertise in event-driven arbitrage strategies, such as merger arbitrage, bankruptcy reorganizations, and other corporate events. Paulson & Co. also pursues investments in distressed debt opportunities throughout the US and Western Europe, with the help of its strategic insights and extensive market experience. John Paulson is now also bullish on gold after 15 years and expects its price to reach ~$5,000 per ounce by 2028. He is the largest shareholder in Perpetua Resources. On April 29, Reuters reported that in a recent interview, Paulson reinforced that his conviction in gold is underpinned by the analysis of central bank buying trends and rising global trade tensions. He highlighted the inclination of central banks and individuals to seek stable stores of value now and suggested that gold will therefore enhance its global standing. Paulson believes that the Western confiscation of Russia’s foreign reserve holdings following the Ukraine invasion is one of the reasons behind the anticipated appreciation of gold prices.

Our Methodology

To compile the list of billionaire John Paulson’s 10 stocks with huge upside potential, we sifted through Q4 2024 13F filings of Paulson & Co. from Insider Monkey. From these filings, we checked each stock’s upside potential from CNN and ranked the stocks in ascending order of this upside potential. We have also added Paulson & Co.’s stake in each company and the hedge fund sentiment around each stock.

Note: All data was sourced on May 2.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A series of pharmaceutical and medical products in a warehouse, displaying the range of products available.

Bausch Health Companies Inc. (NYSE:BHC)

Paulson & Co.’s Stake: $213.10 million

Number of Hedge Fund Holders: 36

Average Upside Potential as of May 2: 60.38%

Bausch Health Companies Inc. (NYSE:BHC) is a diversified specialty pharmaceutical and medical device company. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, generic pharmaceuticals, over-the-counter products, aesthetic medical devices, and eye health.

The company’s Salix Pharmaceuticals segment is known for driving revenue through its gastrointestinal products, most notably the drug Xifaxan. In Q1 2025, Salix reported a revenue of $542 million, which was a 9% increase year-over-year. Xifaxan itself saw an 8% growth, where total retail scripts increased by 1.5%, and new patient starts on Xifaxan showed both year-over-year and quarter-over-quarter growth. Over 59,000 new patients initiated on the therapy in Q1 2025.

Bausch Health Companies Inc.’s (NYSE:BHC) RED-C program is also progressing with Phase 3 global studies fully enrolled. It’s studying a novel rifaximin formulation for patients with cirrhosis before their first decompensation event. This patient population in the US is estimated to be at least 3x larger than the current hepatic encephalopathy market served by Xifaxan. Initial data readout from the RED-C program is expected by early 2026.

Overall, BHC ranks 5th on our list of billionaire John Paulson’s stocks with huge upside potential. While we acknowledge the potential of BHC as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BHC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

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The “Toll Booth” Operator of the AI Energy Boom

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The Hedge Fund Secret That’s Starting to Leak Out

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…