"Tracking John Paulsons Paulson & Company Portfolio  Q2 2015 Update"
"John Paulsons U.S. long portfolio increased from $19.64B to $21.69B this quarter.Paulson & Company's largest three positions are Allergan plc, Valeant Pharmaceuticals, and Shire plc.Paulson added Starwoods Hotels & Resorts and increased Allergan plc, Valeant Pharmaceuticals, & Mylan NV stakes during the quarter.This article is part of a series that provides an ongoing analysis of the changes made to John Paulsons US stock portfolio on a quarterly basis. It is based on Paulsons regulatory  filed on 08/14/2015. Please visit our  to get an idea of his investment philosophy and our  highlighting the funds moves during Q1 2015.This quarter, Paulsons US long portfolio increased ~10% from $19.64B to $21.69B. There are 61 13F securities in the portfolio although only 33 of them are significantly large equity holdings (more than 0.5% of the US long portfolio). The article is focused on the larger holdings. The top-five positions are Allergan plc, Valeant Pharmaceuticals, Shire plc, Mylan NV, & Time Warner Cable and they together account for 40.69% of the entire portfolio. The largest holding is Allergan plc at 10.04% of the portfolio.John Paulson is best known for his highly leveraged bets against the real-estate bubble that netted him billions in the aftermath. To learn more about that story, check-out .Stake Disposals:Salix Pharmaceuticals (SLXP): Salix was a fairly large 4.84% of the portfolio stake established in Q4 2014 at prices between $91.47 and $156.2 and reduced by ~5% last quarter.Note: Valeant Pharmaceuticals agreed to acquire Salix in a $173 per share cash deal and that transaction closed in April.Talisman Energy (TLM): TLM was a 2.73% of the US long portfolio position purchased in Q4 2014 at prices between $3.69 and $8.65.Note: Repsol SA (REPYY) agreed to acquire TLM for $8 per share and the deal closed in early May.Popular Inc. (BPOP): BPOP was a very small 0.83% long-term stake established in 2011. It was eliminated this quarter at prices between $28.36 and $35.58. The stock currently trades at $30.35. Although the relative size was small, Paulsons ownership of BPOP was ~4.6%.New Stakes:Starwood Hotels & Resorts (HOT): HOT is a 4.49% of the US long portfolio position established this quarter at prices between $80.55 and $87.53. The stock currently trades below that range at $76.67. For investors attempting to follow Paulson, HOT is a good option to consider for further research.Note: Following CEO exit in February this year, Starwood said they were exploring strategic alternatives to increase shareholder value.Teva Pharmaceuticals (TEVA): TEVA is a very small 0.55% of the US long portfolio stake established this quarter at prices between $58.91 and $67.14. The stock currently trades just outside that range at $68.78.Stake Decreases:Bank of America (BAC) 2019 WTS: This is a very small 0.53% of the US long portfolio position. It was reduced by ~16% in Q4 2014 and another ~14% this quarter. As the position size is very small, the activity does not indicate a clear bias.Houghton Mifflin Harcourt (HMHC): HMHC is a 1.42% of the US long portfolio position established in Q4 2013 as a result of its November 2013 IPO. The company filed for Chapter 11 bankruptcy protection in March 2012. Paulson held senior debt that got converted into equity. The IPO was priced at $12 per share and it currently trades at $22.57.Mallinckrodt PLC (MNK): MNK is a fairly large 3.58% of the US long portfolio position established in Q3 2013 at prices between $42 and $47.20. It was increased by ~20% in Q2 2014 at prices between $60.28 and $82.70 and an additional one-third in the following quarter at prices between $68.12 and $90. The stock currently trades outside those ranges at $95.86. Last quarter saw a ~6% trimming at prices between $93.89 and $133 and this quarter saw another ~22% decrease at prices between $113 and $130. The current stake is at around ~5.6% of the business. He is harvesting huge long-term gains.Note: Mallinckrodt was spun-off from Covidien plc (COV) on July 1, 2013 (one share of MNK for every eight shares of COV). MNK started trading at around $42.Shire PLC ADR (SHPG): SHPG is Paulsons third-largest position at 7.90% of the US long portfolio. It was established in Q3 2012 at prices between $85 and $94. In Q2 2013, the position was doubled at prices between $87 and $100. In Q2 2014, the stake was again increased by ~36% at prices between $142 and $236. The following quarter saw a whopping ~170% increase at prices between $232 and $263. This quarter, the pattern reversed: ~15% reduction at prices between $227 and $260. The stock currently trades at $240.Note: On July 18, 2014, AbbVie Inc. (ABBV) agreed to buy Shire PLC for $53B but they called off the deal three months later.  Shire earned a break-up fee of $1.6B. In February 2015, SHPG acquired NPS Pharmaceuticals (NPSP) for $5.2B. Earlier this month, SHPG made a hostile bid for Baxalta (BXLT), the Baxter (BAX) spin-off.AngloGold Ashanti (AU): The 1.07% AU position was reduced by ~4.5% in Q2 2014 at prices between $15.42 and $18.57. Q1 2014 also saw a ~11% reduction at prices between $11.39 and $19.36. It is a long-term position that has been in the portfolio since 2009. The stock currently trades at $7.32. Paulson controls 6.49% of the business. This quarter saw a marginal reduction.Oasis Petroleum (OAS): OAS was a very small 0.64% of the US long portfolio position as of Q3 2013. The stake was increased substantially to a 2.24% position in Q4 2013 at prices between $43 and $57. It was further increased by one-third in Q1 2014 at prices between $39 and $47. Last quarter saw a ~10% reduction at prices between $12.56 and $18.65. The stock currently trades well below his purchase price ranges at $10.23. This quarter saw very minor additional selling.Realogy Holdings (RLGY): RLGY is a 1.52% of the US long portfolio (~4.9% of the business) position that was reduced by ~40% in the last two quarters at prices between $33.91 and $48.86. This quarter saw a marginal further reduction. The original investment was made prior to the October 2012 IPO. The stock currently trades at $43.37.SPDR Gold Trust (GLD): GLD was Paulsons largest position by far at 19.03% of the US long portfolio as of Q1 2013. It was reduced by more than half in Q2 2013 at prices between $116 and $155. The original stake was established in Q1 2009 at prices between $82.71 and $97.80. It was reduced by ~45% in 2011 at much higher prices and since then had been kept relatively steady. The stock currently trades at $108. The position was kept steady in the last seven quarters but this quarter saw a change: ~10% reduction at prices between $112 and $118. The remaining stake is still fairly large at 4.79% of the portfolio.Time Warner Cable (TWC): TWC is a large (top-five) 6.67% of the US long portfolio stake established in Q3 2013 at prices between $107 and $118. The position was almost doubled the following quarter at prices between $110 and $138. The last four quarters also saw activity with the net effect of a ~50% stake increase at a cost-basis of around $140. This quarter saw a ~7% reduction at prices between $149 and $184. The stock currently trades at $191.Note: In February 2014, Comcast (CMCSA) agreed to buy TWC in an all-stock deal but that transaction was called off in April this year. In May, Charter Communications (CHTR) agreed to buy TWC in a cash-and-stock deal valued at $195 per share ($100 cash).Whiting Petroleum (WLL): WLL was a very small 0.31% of the US long portfolio position in Q3 2013. The stake was increased to a large 3.15% position in Q4 2013 at prices between $58 and $70. Last quarter saw a ~7.5% reduction at prices between $26.48 and $40.95. This quarter saw a very minor further reduction. The stake is now at 1.92% of the portfolio (~6% of the business). For investors attempting to follow Paulson, WLL is a very good option to consider for further research. It currently trades well below his purchase price ranges at $17.77.Note: The share count increased by ~44% in Q4 2014 as result of Whitings acquisition of Kodiak that closed in December 2014 - Paulson had a ~26M share position in Kodiak that converted into Whiting stock (0.177 shares of Whiting for each share held).MGIC Investment (MTG) & Radian Group (RDN): These very small positions (less than 1% of the US long portfolio) were further reduced this quarter. MTG saw a ~8% reduction while RDN was reduced by one-third. Although the relative sizes are very small, Paulson has very significant ownership stakes: ~3.5% of MTG and ~2.9% of RDN.Stake Increases:Allergan plc (AGN) previously Actavis plc: ACT was a minutely small 0.29% of the US long portfolio position in Q2 2014. The following two quarters saw a ~420% increase at prices between $202 and $271. This quarter saw a further ~27% increase at prices between $283 and $313. The stock is currently at $317 and the stake is Paulsons largest at 10.04% of the portfolio.Note 1: Last quarter had seen a ~260% increase in AGN (then Actavis). Part of that increase was due to the acquisition of Allergan by Actavis. Paulson held 6.37M shares of Allergan for which he received ~2.35M shares. That stake was established in Q2 2014 at prices between $117 and $174. Actavis plc agreed to acquire AGN in a cash-and-stock deal valued at $219 per share and that transaction closed in March.Note 2: This is the second renaming in the last few years: In January 2013, Watson Pharmaceuticals was renamed Actavis following an acquisition.Cablevision Systems (CVC): CVC is a 1.37% of the US long portfolio stake that was first purchased in Q4 2012 at prices between $13.65 and $18.52. In Q1 2013, the position was increased by around one-third at prices between $13.76 and $15.75. Q2 2013 saw an additional 24% increase at prices between $13.93 and $16.82. Q4 2014 saw an about-turn: ~29% reduction at prices between $17.24 and $21.32 and that was followed with a ~39% reduction last quarter at prices between $17.72 and $20.76. This quarter the pattern reversed again: ~48% increase at prices between $17.95 and $25.86. The stock currently trades at $25.02.Mylan Inc. (MYL): MYL is a 6.86% of the US long portfolio position. The original stake was purchased in Q1 2010 at prices between $17 and $23. Q1 2013 saw a 25% reduction at prices between $27.54 and $31 and the following quarter saw another one-third reduction at prices between $28.70 and $32. Q4 2014 saw an about-turn: ~20% increase at prices between $45.27 and $58.62 and that was followed with a ~47% increase this quarter at prices between $57.94 and $76.06. The stock trades currently at $54.98.Valeant Pharmaceuticals (VRX): VRX position was increased by almost 300% last quarter at prices between $143 and $205 and another ~340% this quarter at prices between $197 and $242. The stock currently trades at $246 and the position is now very large (top-three) at 9.22% of the portfolio.Caesars Entertainment (CZR): CZR is a minutely small 0.41% portfolio stake. As a percentage of the business, the position is very significant at ~10%. The original stake was increased by 5.2% in Q4 2013 at prices between $16.74 and $22.39 and another 11% in Q1 2014 at prices between $19 and $26.47. This quarter also saw a minor ~6% increase. The stock currently trades at $6.99. The investment is from prior to the 02/2012 IPO.Computer Sciences Corporation (CSC): CSC is a small 1.28% of the US long portfolio position purchased last quarter at prices between $60.68 and $71.74. The stake saw a marginal increase this quarter. The stock currently trades at $66.43.Grifols S A (GRFS): GRFS is a medium-sized 2.55% of the US long portfolio position. It was increased slightly in the last two quarters. As the recent activity is very minor, it does not indicate a change in bias.Post Holdings (POST) & WhiteWave Foods (WWAV): These are very small (~0.5% of the portfolio each) stakes that were increased this quarter. The position sizes are still too small to indicate a clear bias. Paulson controls 4.7% of POST.Kept Steady:American International Group (AIG): AIG is a fairly large 4.16% of the US long portfolio stake established last quarter at prices between $48.87 and $56.11. The stock currently trades at $62.92.Cobalt International Energy (CIE): CIE was a minute 0.12% of the US long portfolio stake as of Q1 2013. The position was increased to a substantial 2.63% stake in Q2 2013 at prices between $25 and $29. The position was more than doubled in Q1 2014 at prices between $15.85 and $19.46 and the following quarter saw a further 52% increase at prices between $17.20 and $19.36. The stock currently trades well below his purchase price ranges at $7.66 and the position stands at 1.87% of the US long portfolio (10.12% of the business).Cyberonics Inc. (CYBX): CYBX is a very small 0.47% stake established last quarter at prices between $54.36 and $72.03. The stock currently trades at $59.79. Paulson controls ~6.6% of the business.DirecTV (DTV): DTV was a 4.88% of the portfolio merger arbitrage stake established in Q2 2014. AT&T (T) acquired DTV in a deal worth $95 per share ($28.50 cash and $66.60 stock) in a transaction that closed last month.Extended Stay America (STAY): STAY is a fairly large 4.13% of the US long portfolio position. The stake came about as a result of the firms IPO in November 2013. STAY currently trades at $19.23 compared to the IPO offering price of $20.Note: Extended Stay America filed Chapter 11 bankruptcy on June 16, 2009 and an investment group consisting of Paulson & Company, Blackstone Group, and Centerbridge Partners bought Extended Stay America out of bankruptcy in October 2010. At the time of the 11/2013 IPO, the firms already made more than three times their investment.HCA Holdings (HCA): HCA was a small 0.83% of the US long portfolio position in Q2 2014. It was increased by almost 80% in Q3 2014 at prices between $54.52 and $73.48. Q4 2014 saw an about-turn as the position was reduced by ~22% at prices between $62.94 and $74.96. The stock currently trades at $89.85.MGM Resorts (MGM): MGM was a huge position established in Q2 2010 at prices between $9.48 and $15.89. Q4 2014 saw a ~70% reduction at prices between $18.01 and $23.25 and that was followed with a ~11% reduction last quarter at prices between $19.13 and $22.85. The stock currently trades at $21.88 and the remaining stake is at 0.52% of the portfolio.Novagold (NG): NG is a very small 0.56% of the portfolio stake. As a percentage of the business, the position is very significant at ~11%. It is a very long-term stake and Paulsons cost-basis is higher than the current price of $3.71.T-Mobile USA (TMUS): The stake was acquired as a result of the reverse-merger and IPO transaction of MetroPCS with T-Mobile USA. MetroPCS was a 2.19% of the US long portfolio established in Q3 2012. This was a timely purchase for Paulson and he has large unrealized gains. Last quarter saw a ~55% increase at prices between $26.87 and $33.20. The stock currently trades at $41.50.Tim Participaceoes S A (TSU): TSU is a minutely small 0.45% of the portfolio stake kept steady this quarter.Other very small positions (less than 0.5% of the US long portfolio each) in the portfolio include Agnico Eagle Mines (AEM), BAC 2018 WTS, Caesars Acquisition (CACQ), Dex Media (DXM), Enzymotec Ltd. (ENZY), Felcor Lodging (FCH), Gulf Coast Ultra Deep Royalty (GULTU), Howard Hughes Corporation (HHC), International Tower Hill, Iamgold Corp. (IAG), InterXion Holding (INXN), Kamada Ltd. (KMDA), Novacopper Inc. (NCQ), Oi SA (OIBR), Outfront Media (OUT), PharMerica Corp. (PMC), Randgold Resources (GOLD), Sprint Corp. (S), Synthesis Energy (SYMX), Synergy Pharmaceuticals (SGYP), Vanda Pharma (VNDA), and William Lyon Homes (WLH).Note 1: Although these positions are very small relative to the size of the portfolio, it should be noted that Paulson owns significant stakes in the following businesses: 9.6% of Caesars Acquisition, 11.7% of Synthesis Energy, 9.34% of Vanda Pharmaceuticals and 19.52% of Enzymotec Ltd.,Note 2: A regulatory 13D filing on 08/13/2015 showed Paulson owning 56.43M shares (19.4% of business) of Overseas Shipholding (OSGIQ).The spreadsheet below highlights changes to Paulsons US stock holdings in Q2 2015:"