John Paulson has built a reputation as one of the most prominent hedge fund managers of his generation, known for his legendary trade against subprime mortgages during the 2008 financial crisis. Through his firm Paulson & Co., he generated billions by purchasing credit default swaps tied to mortgage-backed securities before the U.S. housing market collapsed.
Today, John Paulson’s portfolio reflects a highly concentrated investment strategy focused on a small number of companies where he sees strong long-term catalysts. The portfolio refers to the U.S. equity holdings reported in the SEC Form 13F filing of Paulson & Co., which discloses the publicly traded stocks owned by the firm at the end of each quarter.
The Q4 2025 filing, submitted to the U.S. Securities and Exchange Commission on February 14, 2026, shows that John Paulson’s portfolio held $3.26 billion in U.S. equities across 9 companies, marking the highest equity exposure in more than three years. The portfolio remains concentrated in two sectors that have historically defined Paulson’s strategy: biotechnology and gold mining firms.
This concentration is clearly visible in the largest holdings. The four biggest positions are Madrigal Pharmaceuticals (MDGL), Perpetua Resources (PPTA), Bausch Health (BHC), and Acadian Asset Management (BSIG). Together, these companies account for about 81% of the total portfolio value, showing that Paulson allocates most of his capital to a small number of high-conviction investments.
Quarterly changes in John Paulson’s portfolio were limited but strategically meaningful. Paulson initiated a new position in Solstice Advanced Materials (SOLS) while fully exiting Trilogy Metals (TMQ) and Honeywell (HON). He also reduced his stake in Madrigal Pharmaceuticals, the largest holding in the portfolio, and added modestly to Bausch Health and Thryv Holdings.
The following sections analyze the key trades in John Paulson’s portfolio, the structure of his largest holdings, and the role of gold and biotechnology investments in his strategy.
Key Takeaways From John Paulson’s Portfolio
- Extreme concentration: The portfolio holds $3.26B across 9 stocks, with the top four positions accounting for 81.3% of total assets.
- Top holdings dominance: Madrigal Pharmaceuticals (35.7%), Perpetua Resources (20.1%), Bausch Health (16.3%), and Acadian Asset Management (9.2%) form the core of the portfolio.
- Biotech focus: Madrigal Pharmaceuticals, the largest holding at 35.7%, anchors Paulson’s exposure to biotechnology and pharmaceutical innovation.
- Gold allocation: Perpetua Resources and other gold miners provide significant exposure to precious metals within the portfolio.
- Limited trading in Q4 2025: Paulson initiated Solstice Advanced Materials, exited Trilogy Metals and Honeywell, and reduced Madrigal Pharmaceuticals while adding modestly to Bausch Health and Thryv Holdings.
John Paulson Portfolio Structure: Top Holdings in Q4 2025
John Paulson’s portfolio structure is defined by very high concentration in a small number of companies. The portfolio holds $3.26 billion across 9 stocks, with most capital allocated to the largest positions. The top four holdings account for 81.3% of the portfolio, showing Paulson’s preference for building large stakes in a limited set of companies.
This structure reflects a high-conviction investment approach. Instead of spreading capital across many positions, Paulson allocates most of his portfolio to companies where he expects strong fundamental catalysts and long-term value creation.
Top Holdings in John Paulson’s Portfolio
# | Company | Ticker | Sector | Portfolio Weight |
|---|---|---|---|---|
1 | Madrigal Pharmaceuticals | MDGL | Biotechnology | 35.7% |
2 | Perpetua Resources | PPTA | Gold Mining | 20.1% |
3 | Bausch Health | BHC | Pharmaceuticals | 16.3% |
4 | Acadian Asset Management | BSIG | Asset Management | 9.2% |
5 | NovaGold Resources | NG | Gold Mining | 7.4% |
6 | International Tower Hill Mines | ITH | Gold Mining | 4.6% |
7 | Thryv Holdings | THRY | Marketing Technology | 3.4% |
8 | Seabridge Gold | SA | Gold Mining | 2.3% |
9 | Solstice Advanced Materials | SOLS | Specialty Materials | 1.0% |
Sector Concentration
TTwo sectors dominate John Paulson’s portfolio: biotechnology and gold mining. These industries represent the majority of capital allocated across his largest holdings.
Biotechnology and pharmaceuticals
Healthcare represents the largest sector allocation in the portfolio. The exposure is driven primarily by two companies:
- Madrigal Pharmaceuticals (35.7%), the largest position in the portfolio
- Bausch Health (16.3%), a major specialty pharmaceutical company
Together, these holdings account for more than half of the portfolio, making healthcare the central pillar of Paulson’s current equity strategy.
Gold mining
Paulson also maintains significant exposure to gold producers and development-stage mining companies. These positions provide direct leverage to gold prices and long-term resource development.
The largest gold-related holdings include:
- Perpetua Resources (20.1%)
- NovaGold Resources (7.4%)
- International Tower Hill Mines (4.6%)
- Seabridge Gold (2.3%)
These companies operate or develop large-scale gold projects, giving the portfolio substantial exposure to precious metals and mining assets.
Key Changes in John Paulson’s Portfolio in Q4 2025
Trading activity in John Paulson’s portfolio remained limited during the quarter, but several moves adjusted the structure of the portfolio. The changes included one new position, two complete exits, a reduction in the largest holding, and small additions to existing investments. These adjustments maintained the portfolio’s concentration while slightly rebalancing sector exposure and position sizing.
New Position
Solstice Advanced Materials (SOLS)
Paulson initiated a new position representing about 1.0% of the portfolio. Solstice Advanced Materials operates in the specialty materials industry, producing high-performance industrial materials used in sectors such as chemicals, advanced manufacturing, and energy.
The position introduces a new industry exposure that was previously absent from the portfolio. While the allocation remains small compared with Paulson’s core holdings, the investment may reflect interest in companies tied to industrial production and materials supply chains. At its current size, Solstice Advanced Materials functions as a satellite position rather than a core portfolio holding.
Reduction of the Largest Position
Madrigal Pharmaceuticals (MDGL)
Paulson reduced his position in Madrigal Pharmaceuticals, although it remains the largest holding in the portfolio at 35.7% ($994.36M). Trimming the position slightly reduces concentration risk while preserving significant exposure to the biotechnology sector.
Madrigal develops therapies targeting metabolic liver diseases, including treatments for nonalcoholic steatohepatitis (NASH), a condition affecting millions of patients globally. Pharmaceutical research indicates that NASH represents a multi-billion-dollar therapeutic market, as described in studies published by the Global Liver Institute and the American Association for the Study of Liver Diseases. Continued development progress in this area can significantly influence the company’s valuation.
Increased Positions
Paulson also increased two existing positions, reinforcing exposure to healthcare and services.
Bausch Health (BHC)
Paulson expanded his stake in Bausch Health by approximately $23.5 million, bringing the total position value to about $531 million. The company represents 16.3% of the portfolio and remains one of Paulson’s largest holdings. Bausch Health operates across multiple therapeutic areas, including gastroenterology, dermatology, and eye health through its Bausch + Lomb division.
Thryv Holdings (THRY)
Paulson also increased his position in Thryv Holdings by roughly $6.4 million, raising the total investment to around $110 million, or 3.4% of the portfolio. Thryv provides digital marketing and business management software for small and medium-sized businesses, helping companies manage customer relationships, online presence, and marketing operations through a unified platform.
Complete Exits
Two positions were fully sold during the quarter, removing exposure to both base metals development and diversified industrial manufacturing.
Trilogy Metals (TMQ)
Paulson exited his entire position in Trilogy Metals, previously valued at approximately $14.8 million, which represented about 0.5% of the portfolio. Trilogy Metals focuses on copper and base metals development projects, including the Arctic and Bornite deposits in Alaska. Selling the position reduces exposure to base metals exploration and concentrates the portfolio’s commodity exposure more heavily in gold mining companies.
Honeywell (HON)
Paulson also sold his full stake in Honeywell, which had a value of roughly $46.6 million in the previous quarter. Honeywell is a diversified industrial and aerospace technology company operating across automation, aerospace systems, and energy technologies. Exiting this position removes exposure to large-cap industrial manufacturing and further concentrates the portfolio on biotechnology, pharmaceuticals, and gold-related investments.
The 2008 Trade That Changed Everything
In the mid-2000s, Paulson identified the vulnerabilities of mortgage-backed securities that were increasingly composed of risky subprime loans. Through Paulson & Co., he built large positions in credit default swaps linked to those securities. When the U.S. housing market collapsed, these positions delivered extraordinary profits.
In 2007 alone, Paulson’s funds generated approximately $15 billion in profits, with Paulson himself earning over $4 billion personally. This was not a matter of luck but rather the result of extensive research, contrarian thinking, and deep expertise in distressed assets and arbitrage strategies. The trade remains one of the most successful in hedge fund history and is frequently studied in academic and professional circles as an example of identifying systemic mispricing.
Paulson’s Investment Philosophy Today
Nearly two decades after the financial crisis, Paulson’s philosophy has evolved but retains several defining characteristics. Since converting Paulson & Co. into a family office in 2020, he has operated with greater flexibility and longer investment horizons than traditional hedge funds.
At the center of his approach is a combination of value investing and event-driven strategies. Paulson targets situations such as mergers, restructurings, bankruptcies, and corporate reorganizations, where short-term inefficiencies can create opportunities for long-term capital appreciation. These positions often require specialized knowledge and a willingness to assume complexity that broader markets may avoid.
A second pillar of his philosophy is allocation to hard assets, particularly gold and other scarce resources. Paulson views these investments as both a store of value and a hedge against monetary instability and inflation. His portfolio includes exposure to producers and exploration companies, reflecting both defensive characteristics and potential upside during favorable commodity cycles.
The third component of his philosophy is selective exposure to healthcare and biotechnology. Paulson invests in companies developing treatments for high-value diseases such as metabolic disorders and psychiatric conditions, where breakthrough innovation can create large gains in enterprise value. Positions in companies like Madrigal Pharmaceuticals exemplify this forward-looking approach.
Taken together, Paulson’s philosophy can be described as opportunistic but concentrated. His portfolio shows little interest in broad ETF exposure, instead favoring direct stock ownership in a handful of high-conviction names.
FAQ: John Paulson’s Portfolio
What is John Paulson’s portfolio value?
John Paulson’s portfolio holds approximately $3.26 billion in U.S. equities according to the latest SEC 13F filing. The portfolio contains 9 publicly traded companies and is highly concentrated in a small number of positions.
What are the largest holdings in John Paulson’s portfolio?
The four largest positions dominate the portfolio and account for about 81.3% of total assets.
Company | Ticker | Portfolio Weight |
|---|---|---|
Madrigal Pharmaceuticals | MDGL | 35.7% |
Perpetua Resources | PPTA | 20.1% |
Bausch Health | BHC | 16.3% |
Acadian Asset Management | BSIG | 9.2% |
These companies form the core of John Paulson’s portfolio strategy.
Which sectors dominate John Paulson’s portfolio?
Two sectors dominate the portfolio.
Biotechnology and pharmaceuticals
- Madrigal Pharmaceuticals (35.7%)
- Bausch Health (16.3%)
Healthcare represents the largest sector allocation, driven by Paulson’s focus on companies developing treatments for high-value medical conditions.
Gold mining
- Perpetua Resources (20.1%)
- NovaGold Resources (7.4%)
- International Tower Hill Mines (4.6%)
- Seabridge Gold (2.3%)
These companies provide significant exposure to gold prices and large-scale mining projects.
What new stock did John Paulson buy in Q4 2025?
John Paulson initiated a new position in Solstice Advanced Materials (SOLS). The investment represents about 1.0% of the portfolio and introduces exposure to the specialty materials industry, which produces advanced materials used in industrial and manufacturing applications.
Which stocks did John Paulson sell in Q4 2025?
Paulson completely exited two positions during the quarter:
- Trilogy Metals (TMQ) – previously valued at about $14.8 million
- Honeywell (HON) – previously valued at roughly $46.6 million
These exits reduced exposure to base metals development and diversified industrial manufacturing.
Why is John Paulson heavily invested in gold?
John Paulson has maintained large investments in gold mining companies for many years. Gold is often used by investors as a store of value during inflation and monetary instability.
Why does John Paulson invest heavily in biotechnology?
Biotechnology companies can generate large valuation increases when new therapies receive regulatory approval or show strong clinical trial results.
According to research published in Nature Biotechnology analyzing drug development returns, successful drug approvals can create billions of dollars in market value due to the long-term revenue potential of patented treatments. This asymmetric payoff structure makes biotechnology attractive for high-conviction investors seeking large upside opportunities.
How concentrated is John Paulson’s portfolio?
John Paulson’s portfolio is extremely concentrated compared with most institutional investors.
- Total holdings: 9 stocks
- Top 4 positions: 81.3% of portfolio
- Largest holding (Madrigal Pharmaceuticals): 35.7%
This structure reflects a strategy based on large positions in a limited number of high-conviction investments rather than broad diversification.
