John Paulson's Long-Term Stock Picks: BSX / GLD / KGC / LNG / MI / RF / SPY

John Paulson is president of one of the world's most famous hedge funds. He raked in more than $5 Billion in profits for his firm, Paulson & Co., last year. Paulson got his BA from New York University‘s College of Business and Public Administration and his MBA from Harvard Business School. In 2007, during the mortgage bubble, he shorted subprime mortgages and provided enormous abnormal returns. Paulson's 2010 profit was one of the greatest returns in investment history, and one of the reasons for his fame. In 2010 Paulson won Absolute Return’s “Best Long-term Performance (over five years)” award for his Advantage Fund.

John Paulson regularly emphasizes fundamental analysis to make investments. Right now 45% of his US equity portfolio is basic materials and companies in the finance sector. Paulson’s total assets under management is about $35.9 Billion, higher than the 2010 value ($32.1 Billion). Approximately $23 Billion of his clients’ money is invested in US securities. According to Paulson’s year end letter, he transitioned the strategy from short equity bias/long distressed focus to a long equity event focus in 2010. Paulson reinvested all his gains back into the funds since inception. He also encourages his investors to make long term investments on the fund.

Paulson's 13F filings from the most recent 4 quarters reveal that in the US equity market, he usually makes short-term investments. He had invested in 149 different stocks during the year and only 6 of them remained in his portfolio until the end of the September. (more)