By Maria Armental
Paulson & Co. has taken new positions in Covidien PLC (>> Covidien plc) and DirecTV and sold off holdings in American Airlines Group Inc. (>> American Airlines Group Inc), General Motors Co. (>> General Motors Company) and Hess Corp. (>> Hess Corp.) in the second quarter, according to a securities filing Thursday.
The largest change in the period was in Cobalt.
The hedge fund, which historically specialized in merger arbitrage, also initiated a 5,295,300-share stake in Telecom Italia SpA's (>> Telecom Italia SpA) TIM Participacoes SA (>> TIM Participacoes SA) worth $153.7 million. On Wednesday, the Italian company confirmed it is considering merging its Brazilian telecom unit with Vivendi SA's (>> VIVENDI) GTV SA unit to counter a bid for GVT from Spain's Telefonica SA (>> Telefonica SA).
The firm, founded by billionaire investor John Paulson, also reported a 5,602,000-share stake in Allergan Inc. (>> Allergan, Inc.), worth $947.97 million. Meanwhile, Paulson--which supports Valeant Pharmaceuticals International Inc.'s (>> Valeant Pharmaceuticals Intl Inc) hostile takeover for the Botox maker--cut its stake in Valeant to 500,300 shares.
The hedge fund also increased its holdings in rival discount chains Family Dollar Stores Inc. (>> Family Dollar Stores, Inc.) and Dollar General Corp. (>> Dollar General Corp.). Family Dollar agreed last month to sell itself to Dollar Tree for about $8.5 billion. Paulson, which had sent a letter to Family Dollar in January urging the company to sell itself, bought an additional 1,550,000 shares, bringing its stake to 8,020,000 or $530.4 million. It also more than doubled its holdings in Dollar General, buying an additional 2,090,000 for a total stake worth $234.6 million.
While in the previous quarter Paulson had cut its stake in Mallinckrodt PLC (>> Mallinckrodt PLC), the hedge fund reported an increase of 1,088,000 shares for a total state in the specialty pharmaceuticals company worth $538.1 million.
Paulson also increased its holdings in Shire PLC to 3,366,539 shares, or $792.8 million, and Vanda Pharmaceuticals Inc. (>> Vanda Pharmaceuticals Inc.) to 3,200,000 or $51.8 million, and opened a position in Questcor Pharmaceuticals Inc. (>> Questcor Pharmaceuticals Inc) of 2,248,913 shares worth $208 million.
The firm also opened a position in Covidien--which has struck a deal to sell itself to Medtronic Inc. (>> Medtronic, Inc.)-- and in DirecTV, which has agreed to be bought by AT&T Inc. (T). It bought 7,000,000 worth $631.3 million in Covidien and 10,000,000, worth $850.1 million, in DirecTV.
Paulson has been one of the most bullish investors in gold, but his firm made no change in the size of its holdings in the gold exchange-traded fund SPDR Gold Trust (GLD). Its value grew 3.6% in the quarter to $1.31 billion.
The positions were revealed in a 13F filing with the Securities and Exchange Commission, a quarterly requirement for investors managing more than $100 million. The report indicates the number of shares held and the value of each stake at the end of the quarter.
Write to Maria Armental at email@example.com
Stocks mentioned in the article : Covidien plc
, Questcor Pharmaceuticals Inc
, Mallinckrodt PLC
, Medtronic, Inc.
, Telefonica SA
, Valeant Pharmaceuticals Intl Inc
, Vanda Pharmaceuticals Inc.
, Telecom Italia SpA
, TIM Participacoes SA
, Hess Corp.
, Dollar General Corp.
, Allergan, Inc.
, American Airlines Group Inc
, Family Dollar Stores, Inc.
, General Motors Company