10 Best Stocks to Buy According to John Paulson
In this article, we will discuss the 10 best stocks to buy according to John Paulson. If you want to skip our detailed analysis of Paulson’s history, investment philosophy, and hedge fund performance, go directly to the 5 Best Stocks to Buy According to John Paulson.
John Paulson is an American billionaire hedge fund manager who oversees Paulson & Co, a New York-based investment management fund. In 1980, Paulson received his Masters of Business Administration from Harvard Business School. Before forming Paulson & Co. in 1994, he worked at Boston Consulting Group, Odyssey Partners and Bear Stearns.
Paulson has been named as "one of the most eminent names in high finance." He raked in tons of cash, adding up to $4 billion for himself and $15 billion for his fund, betting against the U.S. housing market in the global financial crisis more than a decade ago.
A notable company in John Paulson's Q1 portfolio is Takeda Pharmaceutical Company Limited (NYSE: TAK). Takeda Pharmaceutical Company Limited (NYSE: TAK) currently has a $52.51 billion market capitalization. On July 20, Takeda Pharmaceutical Company Limited (NYSE: TAK) decided to provide an additional 50 million doses of Moderna, Inc. (NASDAQ: MRNA) COVID-19 vaccine to Japan. The extra doses will be supplied in the beginning of 2022. John Paulson's Paulson & Co currently holds 4.73 million shares of Takeda Pharmaceutical Company Limited (NYSE: TAK), which amounts to $86.32 million. Takeda occupies 1.98% of the hedge fund’s total portfolio.
The fund manager also has a significant stake in Exxon Mobil Corporation (NYSE: XOM), which explores and produces crude oil and natural gas. Exxon Mobil Corporation (NYSE: XOM) shares have returned 32.50% to investors over the course of the past 12 months. On July 23, Piper Sandler analyst Ryan Todd raised the price target on Exxon Mobil Corporation (NYSE: XOM) to $69 from $63 and maintained a “Neutral” rating.
Paulson & Co also has a stake in Barrick Gold Corporation (NYSE: GOLD), a mining company that delivers gold and copper with 16 operating sites in 13 countries. The company produced $1.04 million oz. of gold and 96 million pounds of copper in the second quarter. It is on path to achieve its FY 2021 production target.
At the end of the first quarter of 2021, Paulson & Co owned more than 3.55 million shares in Barrick Gold worth $70.23 million. This represented 1.61% of the investment portfolio of Paulson & Co. In addition, New York-based investment firm First Eagle Investment Management is a leading shareholder in Barrick Gold Corporation (NYSE: GOLD), with 27.01 million shares worth more than $534 million.
Why are we paying attention to Paulson's stock picks? Insider Monkey's research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter's stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16. That's why we believe hedge fund sentiment is a handy indicator that investors should consider. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best stocks to buy according to John Paulson. We used Paulson’s 13F portfolio for the first quarter for this analysis.
Best Stocks to Buy According to John Paulson
10. Kirkland Lake Gold Ltd. (NYSE: KL)
Paulson’s Stake Value: $63,851,000 Percentage of John Paulson’s 13F Portfolio: 1.46% Number of Hedge Fund Holders: 25
Kirkland Lake Gold Ltd. (NYSE: KL) is engaged in obtaining, manufacturing, and operating gold properties. It was founded in 1988 and is placed tenth on the list of 10 best stocks to buy according to John Paulson. Kirkland currently has a $10.61 billion market capitalization.
On June 17, Kirkland Lake Gold Ltd. (NYSE: KL) declared a quarterly dividend of $0.1875 per share, in line with the previous. On May 20, National Bank analyst Mike Parkin raised the price target on Kirkland Lake Gold to C$57 from C$52 and maintained a “Sector Perform” rating on the shares.
At the end of the first quarter of 2021, Paulson & Co owned more than 1.50 million shares in Kirkland Lake Gold Ltd. (NYSE: KL), worth $63.85 million. This represented 1.46% of the investment portfolio of Paulson & Co. In addition, as of the end of the first quarter of 2021, 25 hedge funds in Insider Monkey's database held stakes in the company compared to 24 funds in the quarter earlier.
Just like Takeda Pharmaceutical Company Limited (NYSE: TAK), Exxon Mobil Corporation (NYSE: XOM), and Barrick Gold Corporation (NYSE: GOLD), Kirkland Lake Gold Ltd. (NYSE: KL) is one of the best stocks to buy according to John Paulson.
9. Pacira BioSciences, Inc. (NASDAQ: PCRX)
Paulson’s Stake Value: $99,097,000 Percentage of John Paulson’s 13F Portfolio: 2.27% Number of Hedge Fund Holders: 20
Pacira BioSciences, Inc. (NASDAQ: PCRX) is an American pharmaceutical company. It was incorporated in 2006 and ranks ninth on the list of 10 best stocks to buy according to John Paulson. Shares of the company rallied 11.66% in the last 12 months, resulting in a $2.59 billion market capitalization.
On July 26, JP Morgan analyst Christopher Neyor upgraded the stock to "Overweight" from "Neutral." The firm raised the price target to $78 from $75.
At the end of the first quarter of 2021, Paulson & Co owned 1.41 million shares in Pacira BioSciences, Inc. (NASDAQ: PCRX), worth over $99 million. This represented 2.27% of the investment portfolio of Paulson & Co. In addition, as of the end of the first quarter of 2021, 20 hedge funds in Insider Monkey’s database of 866 funds held stakes in Pacira, the same as in the previous quarter.
Just like Takeda Pharmaceutical Company Limited (NYSE: TAK), Exxon Mobil Corporation (NYSE: XOM), and Barrick Gold Corporation (NYSE: GOLD), Pacira BioSciences, Inc. (NASDAQ: PCRX) is one of the best stocks to buy according to John Paulson.
8. DISH Network Corporation (NASDAQ: DISH)
Paulson’s Stake Value: $131,071,000 Percentage of John Paulson’s 13F Portfolio: 3.01% Number of Hedge Fund Holders: 51
DISH Network Corporation (NASDAQ: DISH), with its subsidiaries, supplies pay-TV services in the United States. It was founded in 1980 and is placed eighth on the list of 10 best stocks to buy according to John Paulson. DISH shares have returned 28.89% to investors over the course of the past 12 months.
On July 19, DISH Network Corporation (NASDAQ: DISH) signed a long-term deal worth at least $5 billion to make AT&T Inc. (NYSE: T) the primary network services partner for its wireless customers. On July 7, HSBC analyst Sunil Rajgopal upgraded Dish to “Hold” from “Reduce” with a price target of $40.
The hedge fund managed by John Paulson owns 3.62 million shares in DISH Network Corporation (NASDAQ: DISH) worth over $131 million, representing 3.01% of their investment portfolio. Eagle Capital Management is the biggest stakeholder in the company, with 18.30 million shares worth $662.44 million.
Just like Takeda Pharmaceutical Company Limited (NYSE: TAK), Exxon Mobil Corporation (NYSE: XOM), and Barrick Gold Corporation (NYSE: GOLD), DISH Network Corporation (NASDAQ: DISH) is one of the best stocks to buy according to John Paulson.
In its second quarter 2021investor letter, ClearBridge Investments, an investment management firm, highlighted a few stocks, and DISH Network Corporation (NASDAQ: DISH) was one of them. Here is what the fund said:
“Portfolio holdings in the communication services and financials sectors also made strong contributions. Dish Network continues to make progress on the buildout of its greenfield 5G network, with Las Vegas slated to become the first market launched later this year. The company gained credibility, and its stock reacted favorably, after it announced a partnership with Amazon to deploy a 5G cloud-native network using AWS’s cloud infrastructure. While the stock has been volatile in recent quarters, we continue to feel confident in Dish’s long-term prospects, which include competing as a fourth U.S. wireless carrier. Charter Communications has been executing well and benefiting from the growth in residential broadband, which has been accelerated by COVID-19 and should see further support from the Biden Administration’s infrastructure bill, which earmarks $65 billion for broadband buildout. In addition, we expect the company to continue to grow its wireless business,
leveraging its mobile virtual network operator (MVNO) relationship with Verizon. The company continues to generate strong and growing free cash flow and deploys it toward consistent and material share buybacks."
7. AngloGold Ashanti Limited (NYSE: AU)
Paulson’s Stake Value: $131,256,000 Percentage of John Paulson’s 13F Portfolio: 3.01% Number of Hedge Fund Holders: 14
AngloGold Ashanti Limited (NYSE: AU) functions as a gold mining company. The company was founded in 1944 and stands seventh on the list of 10 best stocks to buy according to John Paulson. AngloGold currently has a market capitalization of $8 billion.
On July 13, AngloGold Ashanti Limited (NYSE: AU) stated that it offered to acquire 80.5% of Corvus Gold Inc. (NASDAQ: KOR) shares for about $370 million. The combination will provide the company with a chance to establish a significant, low-priced, long-term production base in Nevada, a premier mining jurisdiction. On July 9, AU Investec analyst Herbert Kharivhe upgraded AngloGold Ashanti to “Hold” from “Sell” with a price target of ZAR 295.
Paulson & Co is a leading shareholder in AngloGold Ashanti Limited (NYSE: AU), with 5.97 million shares worth more than $131 million. Just like Takeda Pharmaceutical Company Limited (NYSE: TAK), Exxon Mobil Corporation (NYSE: XOM), and Barrick Gold Corporation (NYSE: GOLD), AngloGold Ashanti Limited (NYSE: AU) is one of the best stocks to buy according to John Paulson.
6. Perpetua Resources Corp. (NASDAQ: PPTA)
Paulson’s Stake Value $159,949,000 Percentage of John Paulson’s 13F Portfolio: 3.67% Number of Hedge Fund Holders: 3
Perpetua Resources Corp. (NASDAQ: PPTA) is an American mining company. The company was incorporated in 2011 and ranks sixth on the list of 10 best stocks to buy according to John Paulson. Perpetua has a market capitalization of $299 million.
On July 2, Wainwright analyst Heiko Ihle raised the firm's price target on Perpetua Resources Corp. (NASDAQ: PPTA) to $14.50 from $11.25 and reiterated a “Buy” rating on the shares after the company declared that the U.S. Forest Service is making progress with its reformed action in the National Environmental Policy Act process.
The stock is a new arrival on John Paulson’s portfolio, as his hedge fund bought about 20.94 million shares of Perpetua Resources Corp. (NASDAQ: PPTA), worth $159.95 million. Just like Takeda Pharmaceutical Company Limited (NYSE: TAK), Exxon Mobil Corporation (NYSE: XOM), and Barrick Gold Corporation (NYSE: GOLD), Perpetua Resources Corp. (NASDAQ: PPTA) is one of the best stocks to buy according to John Paulson.
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Disclosure: None. 10 Best Stocks to Buy According to John Paulson is originally published on Insider Monkey.
