“Friends don’t let friends go long BAC.” – Eddie Braverman
Well folks, we all thought he was nuts—but here we are, months after John Paulson opened a long position on Bank of America, going all in when it was trading at around $5 per share and a lot of people (including a lot of the simians on this site) were crying foul. Every just KNEW Bank of America was done. Terrible management! Expensive lawsuits! Losses like crazy! Fed stress tests coming up! Forgetting crying foul, most of us were SCREAMING foul. Talk about a contrarian play.
BAC closed today at 9.53 after cracking the double digits during the day. How bout them apples? Mr. Paulson looks set to book a tidy profit for his fund.
Some of us will probably counterpoint, “Well no kidding Flesh—financial stocks are booming in general.” And you’d be correct—check out bellwether JP Morgan, closing today at after trading around $30 only a few months ago. Heck, even Goldman Sachs seems to be recovering its post-Greg Smith losses pretty nicely. And I think we’re all pretty surprised at how well the big banks fared on the Fed’s much-vaunted stress tests.
Anyway, imagine you’re John Paulson now. You've almost doubled your money. Do you take profits immediately, do a victory lap, and get ready for the next opportunity? Have you shed your “one trick pony” status, if you ever really had it in the first place? Is there still more room for the stock to go up? Or maybe you believe that the rally so far this year has gone on long enough and it’s time for a correction.
What do you think? Time to sell?
he was all-in? so he recovered completely from last year?
haha He lost $10B last year....
I'm pretty sure Paulson got nervous and sold all of his BAC stock at the end of last year.
Here it is: http://blogs.wsj.com/deals/2012/03/19/bofa-rally-2012-the-winners-and-l…
Apple must be buying BAC with all their cash.
Pretty widely reported that Paulson sold out of the financials EOY 2011....tough break.
Haha okay, wow--I officially fail at doing my research. My bad.
Bruce Berkowitz was also long BAC and was getting shit for it.
yeah right, that's just one position. JP actually managed to LOSE money on gold in 2011 when gold had one of its greatest years ever.
if he did indeed go all in on BAC, i'll eat my words.
LOL.. well at least he did make some money. I think the real winner is always going to be Buffett when it comes to BAC
Where is bondarb when needed....it's been THREE months. Could you wait till he is atleast up for 6 months? Not to say the amount of wealth he lost last year makes him a shitty manager for a long time.
Looks like it might reach 15 a share by next year.
Ahahahah I can't believe he sold. This guy must really hate his life right now. Should have gone out at the top (if he ever was there, because the subprime call wasn't really his idea in the first place)
He's worth 12.5bn, can't be hating life that much.
stocks hitting $30 by year-end
If you followed my advice and didn't buy BAC , you lost...oh, that's right. Nothing.
wrong timing at its best.
Placeat quis facere omnis et velit qui eaque. Nemo non corporis dignissimos et. Deleniti soluta omnis perspiciatis aperiam.
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