John Paulson wins big in tough markets like the financial crisis — Here's what he's betting on now

Published Tue, Feb 25 202010:51 AM EST

(This story is for CNBC Pro subscribers only.) John Paulson is renowned for his bets against the U.S. housing market prior to the financial crisis, which made him billions of dollars as the subprime mortgage lending system collapsed more than a decade ago. As global stock markets shudder in the face of the coronavirus threat, CNBC Pro looked at what Paulson & Co.is betting on now in today's volatile environment. The New York-based investment adviser manages about $9 billion. One of his big bets has been paying handsomely this year as the broader market falls. The billionaire investor has placed big bets on gold. As of the end of the fourth quarter, Paulson owned $617 million worth of the SPDR Gold Trust (GLD) , according to the company's 13-F filing. Stocks posted their biggest decline in two years as the coronavirus increasingly spread to countries outside of China, stocking fears that the epidemic will disrupt the global economy. Gold hit a more than seven-year high on Monday as investors flocked to safe-haven assets amid heightened coronavirus fears. The SPDR Gold Trust is up 9% this year. Paulson also bought $285 million worth of gold miner Anglogold Ashanti . Shares of Anglogold dipped about 4% this year after surging 78% in 2019. Four times a year, hedge funds file their long positions with the SEC, and the information is released to the public 45 days after each quarter ends. The filing doesn't necessarily reflect the fund's current holdings. Paulson is betting big on pharmaceutical company Bausch Health Companies , owning $623 worth of the shares as of end of 2019. The company retreated 12% after rallying nearly 62% last year. Another pharma name Allergan is also one of his top holdings. Paulson & Co.'s assets have slumped from a peak $38 billion in 2011 to about $9 billion, with 75 to 80% of the remaining money belonging to Paulson himself. The manager said last year that he'll likely to convert his fund into a private management firm. The longest bull market in history has weighed on the recent returns of the manager, who thrives best in more volatile markets. The market may be returning to an environment best suited for hedge fund managers like Paulson.

Hedge-fund manager John Paulson

David A. Grogan | CNBC

(This story is for CNBC Pro subscribers only.)

John Paulson is renowned for his bets against the U.S. housing market prior to the financial crisis, which made him billions of dollars as the subprime mortgage lending system collapsed more than a decade ago.

As global stock markets shudder in the face of the coronavirus threat, CNBC Pro looked at what Paulson & Co.is betting on now in today's volatile environment. The New York-based investment adviser manages about $9 billion.

One of his big bets has been paying handsomely this year as the broader market falls.