John Paulson's investment firm, Paulson & Co., has demonstrated a strategic recalibration of its portfolio during the third quarter of 2025, culminating in an approximate valuation of $2.97 billion. This financial maneuver underscores a pronounced focus on a select group of ten securities, highlighting a concentrated investment approach. The firm's commitment to high-conviction assets is evident in the continued prominence of Madrigal Pharma (MDGL) as its foremost holding.
Despite a modest reduction of approximately 9% in its stake, Madrigal Pharma (MDGL) maintains its position as the largest component of Paulson's portfolio, representing roughly 30% of total assets, with Paulson holding an impressive 10% ownership of the company. A significant strategic move was the substantial increase in Paulson's holdings in Bausch Health (BHC), driven by a private transaction with Carl Icahn, which elevated Bausch Health to a top-three position and boosted Paulson's ownership to approximately 19%. This quarter also marked a period of portfolio streamlining, with notable divestitures including Seabridge Gold, Iamgold, Alphabet, Equinox Gold, and Juniper Networks. Conversely, major long-term positions in Perpetua Resources, NovaGold, and Acadian Asset Management were largely sustained, indicating confidence in these core investments.
The adjustments within John Paulson’s portfolio reflect a dynamic investment philosophy, balancing targeted concentration with strategic re-evaluation. These decisive actions showcase an active management style aimed at optimizing returns through high-conviction plays and adapting to market shifts. The focus on key holdings and the willingness to divest underperforming or less strategic assets are hallmarks of a discerning investor who prioritizes long-term value creation.
This strategic approach to portfolio management, characterized by deep conviction and timely adjustments, offers valuable insights for investors seeking to navigate complex market environments. It exemplifies how calculated risk-taking and disciplined decision-making can contribute to sustained financial growth and a robust investment posture.