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. Today, through his family office Paulson & Co., his approach is defined by concentrated, high-conviction positions with a strong tilt toward value opportunities and event-driven investments. Unlike many diversified institutional investors, Paulson prefers to take large stakes in a select group of companies, a style that magnifies both risk and reward.
In the second quarter of 2025, Paulson & Co. reported a 13F portfolio worth $2.0 billion spread across just 15 holdings, making it one of the most concentrated hedge fund-style portfolios among top managers. The portfolio is dominated by two long-standing themes: biotechnology and gold, which together represent the majority of assets. His holdings reflect a strategy aimed at capturing asymmetric upside in sectors where he believes fundamentals, catalysts, and macroeconomic conditions align.
The Q2 2025 filing highlighted both continuity and selective repositioning. Madrigal Pharmaceuticals (MDGL) remained the single largest holding at 31.4% of the portfolio, though Paulson trimmed the position slightly. At the same time, he reinforced bets on Perpetua Resources (PPTA) and Bausch Health (BHC), while opening small new positions in Juniper Networks (JNPR) and Alphabet (GOOG). These moves reflect Paulson’s continued conviction in healthcare innovation and gold exposure, while signaling measured interest in U.S. technology.
The filings also showed a complete exit from Intra-Cellular Therapies (ITCI), a biotech stock previously held. This suggests a reallocation away from smaller pharmaceutical bets toward higher-conviction positions. Taken together, the quarter’s trades highlight Paulson’s disciplined, concentrated style that differs sharply from broader index-driven hedge funds.
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.
Q2 2025 Changes in Detail: John Paulson’s Equity Portfolio
1. Trims and Cuts
- Madrigal Pharmaceuticals (MDGL): Reduced slightly by 0.48%, but remains the largest holding at $632.4M (31.4% of portfolio).
- Intra-Cellular Therapies (ITCI): Fully exited, removing a small biotech stake.
2. Additions to Existing Positions
These were the most impactful moves of the quarter:
- Perpetua Resources (PPTA): Increased by +30.6%, now worth $392.7M (19.5% of portfolio). This marks a major reinforcement of Paulson’s long-standing gold exposure.
- Bausch Health (BHC): Increased by +24.0%, raising the position to $218.4M (10.9% of portfolio). Strengthens exposure to specialty pharmaceuticals.
3. New Buys
- Juniper Networks (JNPR): New stake of $9.98M (0.5% of portfolio), signaling selective interest in networking and communications.
- Alphabet (GOOG): New position worth $1.6M (0.08% of portfolio), a very small allocation but noteworthy as a move into U.S. mega-cap tech.
Top 10 Holdings: Q2 2025 Equity Portfolio
Company | Ticker | Industry | Value | Portfolio % |
Madrigal Pharmaceuticals | MDGL | Biotechnology | $632.4M | 31.4% |
Perpetua Resources | PPTA | Gold | $392.7M | 19.5% |
Bausch Health | BHC | Pharmaceuticals | $218.4M | 10.9% |
NovaGold Resources | NG | Gold | $111.4M | 5.5% |
Agnico Eagle Mines | AEM | Gold | $93.2M | 4.6% |
International Tower Hill Mines | ITH | Gold | $60.1M | 3.0% |
Thryv Holdings | THRY | Advertising | $52.0M | 2.6% |
Honeywell | Industrial Conglomerates | $46.6M | 2.3% | |
Seabridge Gold | SEA | Gold | $30.1M | 1.5% |
Juniper Networks | JNPR | Communications Equipment | $9.98M | 0.5% |
Together, these holdings account for over 97% of Paulson’s assets, underscoring his conviction-driven style.
Key Takeaways: John Paulson’s Q2 2025 Equity Portfolio
- Highly concentrated portfolio: $2.01B across only 15 holdings.
- Biotech leadership: Madrigal Pharmaceuticals remains the single largest position at 31.4%.
- Gold exposure dominates: Multiple gold miners and explorers together make up more than one-third of the portfolio.
- Selective reallocation: Trimmed Madrigal, exited ITCI, and increased stakes in Perpetua Resources and Bausch Health.
- New entries: Juniper Networks and Alphabet mark small but notable moves into technology.
Paulson’s Q2 2025 portfolio reflects his long-standing commitment to concentrated investing in sectors where he sees durable value and catalysts for growth. While biotech and gold continue to dominate, his small steps into technology suggest an awareness of emerging opportunities beyond his core focus.
