Posts tagged John Paulson

U.S. Housing Business Looking Up

John Paulson has a solid history investing in the construction industry. Slow but steady increases in the market have pushed Paulson & Co. to support William Lyon Homes, a homebuilding company based in Newport Beach, CA. The company raised $217.5 million with its initial public offering earlier this month.

Despite hitting rough times in previous years, William Lyon’s sales jumped by over a third last year to $76.4 million. Last November, Paulson & Co. invested $30 million in the company. The firm now owns 21% of the stock as well as 10% of the voting power.

The recent investment indicates that Paulson may be shifting his focus back to the housing industry as the market improves. Prices of new homes are on the rise, and have increased by 11% since this time last year. According to the Financial Post, a Brooklyn townhouse on sale for $950,000 attracted over 300 visitors. While many investors and entrepreneurs are placing their bets with homebuilders, others are approaching the market from other angles.

Bill Smead of Smead Capital Management, for example, explained that he bought shares in Home Depot because it sells home construction equipment, and also invested in banks with inventories of foreclosed homes, like Bank of America, Wells Fargo and JP Morgan.

 traducción español

El negocio de viviendas en Estados Unidos está mejorando

John Paulson  tiene una sólida historia de inversiones en la industria de la construcción. Los aumentos lentos pero seguros del mercado han empujado a Slow & Co. a apoyar a William Lyon Homes, una compañía constructora de casas asentada en Newport Beach, CA. La compañía ha recaudado $217.5 millones con su oferta pública inicial a principios de mes.

A pesar de haber atravesado momentos difíciles en años anteriores, las ventas de William Lyon aumentaron en más de un tercio el año pasado hasta $76.4 millones. El noviembre pasado, Paulson & Co. invirtió $30 millones en la compañía. La firma ahora posee 21% de las acciones al igual que el 10% de poder de voto.

La reciente inversión indica que Paulson podría estar regresando su foco a la industria de la vivienda debido a la mejora del mercado. Los precios de las casas nuevas están ahora en aumento y han aumentado en un 11% desde esta época del año pasado.  De acuerdo con el Financial Post, una casa adosada en Brooklyn en venta por $950,000 atraía más de 300 visitantes. Mientras muchos inversores y empresarios están poniendo sus apuestas en constructoras, otros están tratando al mercado desde otros ángulos.

Bill Smead de Smead Capital Management, por ejemplo, explicó que el compra acciones en Home Depot porque vende equipo de construcción, y también invierte en bancos con inventarios de casa embargadas, como Bank of América, Wells Fargo y JP Morgan.

English translation

Company Spotlight:Paulson & Co. with John Paulson

Paulson & Co. is an employee-owned hedge fund based in New York City. Founded by John Paulson in 1994, the firm manages accounts for banking associations, corporations, and pension and profit sharing plans. It also provides services for investment vehicle pools.

John Paulson currently holds the position of firm president and senior fund manager for all funds under management. His previous experience in the field includes serving as a General Partner of Gruss Partners, a merger arbitrage specialist, and a Managing Director in Mergers and Acquisitions of Bear Stearns.

Listed among the most successful hedge funds, Paulson & Co. climbed dramatically in the industry when John Paulson accurately predicted the collapse of the subprime mortgage market in 2008 and made more than $3 billion.

The firm has eight hedge funds under management today. These include the Paulson Advantage Fund, the Paulson Advantage Plus Fund, the Gold Fund, Paulson Partners, Paulson Enhanced, Paulson Recovery, Paulson Real Estate Recovery, and the Credit Opportunities Fund.

Go to Top