Paulson busy buying banks | MarketWatch


As you see below, Paulson’s fund has added BAC, Citi, Indymac, GS and even State Street using the enhanced corpus from shorting the world’s top banks against the MBS boom in 2007 when we had tipped over in volumes and quality of MBS/Sub-Prime

Interestingly, Dimon’s JP Morgan does not figure in this list.  In an earlier article we had also brought out media reports of his play on the Kraft Cadbury deal!  It wouldn’t be surprising if he gets a couple of ME And Asian investors in his hedge funds in a couple of months. He is sitting on a pretty pile and it will be much bigger in a couple of months when the banks start making some real gains after the accounting bounce back in the last 2 quarters in their fixed income portfolio

Paulson, one of the world's largest hedge-fund firms, held 300 million shares of Citigroup Inc. (C 4.15, +0.10, +2.47%) at the end of September, according to a regulatory filing late Friday. Three months earlier, the firm had no stake in the financial-services giant.

The stake in Citi was valued at $1.45 billion on Sept. 30, according to the filing. It’s not clear whether Paulson still owns the stake, but the firm doesn't specialize in rapid trading.

Citi stock climbed 2.5% to $4.15 during after-hours action Friday.

The Citigroup investment follows a big move by Paulson into Bank of America Corp. (BAC 16.00, +0.02, +0.13%) shares earlier this year. See story on Paulson's Bank of America stake.

Paulson, run by John Paulson, is best known for generating huge returns betting against mortgage-related securities in 2007 and financial institutions in 2008. However, the firm late last year launched the Paulson Recovery Fund, which invests in financial-services firms that are looking to shore up weakened capital positions.

As 2009 began, Paulson was among a group of private-equity investors who acquired failed bank IndyMac from the Federal Deposit Insurance Corp., injecting $1.3 billion into the lender.

In the second quarter, Paulson’s hedge funds bought bank stocks including Bank of America, Goldman Sachs Group (GS 176.68, -0.08, -0.05%) and State Street Corp. (STT 40.40, -0.05, -0.12%) , according to securities filings.

via Paulson held big stake in Citi on Sept. 30 – MarketWatch.

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About zyakaira

Investment Banker, 40s, Bangalore This Biopic and this web recreates how one point of view, one person can impact a tremendous economic engine that the world thrives and mis-thrives on. This one has the knowledge and the civil sense , the art of conversation and some good writing to mentor others as powerful and help global managers develop and fine tune their approach on US markets, China, India and the world. Read on here, and let me know what you need. It can be a race for TRPs, a race for new markets and a race to do what is right. I have the pulse of the crisis, the recovery and the market direction and can help you build and refine your strategy as i have helped thousands of managers and multiple global corporations. Of course, it’s more fun if you talk to me. I am in favor of leading this moving of the economic crisis and will partner with you in a soft and subtle way, just the way we both ride to the top. But you can write with us, opine and just reply with aplomb and shine on Twitter , 4 square , Facebook and any other social “choupal” of choice via zyaadakairaada Profile & Portfolio - SocialPicks Different flavours at: http://benchilibowl.wordpress.com http://zyaada.mp

Posted on November 14, 2009, in Bank Stocks, Financial Markets, Investments and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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