Everyone was buying Verizon Communications Inc. (NYSE:VZ) in the last quarter. According to the Q1 13F filing of Paulson & Co., the hedge fund bought 8.7 million shares of the telecom company in the first quarter, making it the top pick of the period. Other funds who have taken up new positions in Verizon include, Third Point, Berkshire Hathaway, Hayman Capital and Lansdowne Partners.
Paulson Advantage fund Q1 merger arbitrage letter, a copy of which was reviewed by ValueWalk, discussed the hedge fund’s concentration in wireless companies. The letter said that U.S wireless industry could undergo a strong consolidation wave as smaller companies merge with key players. The Advantage fund was up 2.6% at the end of Q1, whereas the Paulson Credit and Recovery Funds were each up 5% in the period.
Paulson buys Actavis, Valeant in Q1
John Paulson’s hedge fund also bought a couple of other hot stocks. Paulson & Co bought 300k shares of Actavis plc (NYSE:ACT), the pharmaceutical company was also a pick of Dan Loeb and Steve Mandel in the same period. Paulson took up 1 million shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX), again a favorite stock among hedge funds.
Other stocks that Paulson bought included, CBS Corporation (NYSE:CBS) and Dollar General Corp. (NYSE:DG).
Paulson adds to General Motors, sticks to Gold
Most hedge funds were reducing position in General Motors Company (NYSE:GM), however Paulson increased it twofold to over 4 million shares. The hedge fund also added to American Airlines Group Inc (NASDAQ:AAL) and Cobalt International Energy, Inc. (NYSE:CIE) positions.
Paulson wrapped up his ownership in Questcor Pharmaceuticals Inc (NASDAQ:QCOR) and InterOil Corporation (USA) (NYSE:IOC) in Q1, seeking out of both stakes.
At the end of March, Paulson’s largest equity holdings were in Extended Stay America Inc (NYSE:STAY), SPDR Gold Shares, Vodafone Group Plc (NASDAQ:VOD) (LON:VOD), Time Warner Cable Inc (NYSE:TWC) and Grifols SA, Barcelona (NASDAQ:GRFS).