John Paulson who is the famous New York Hedge fund manager who made millions predicting the collapse of the banking system and the current financial crisis has now stocked up on Bank shares.
Insiders from the Bank of America told Dale Solutions that Paulson had purchased a large amount of stock in the second quarter of this year.
Paulson’s company was voted the best fund for the last 2 years in New York after it has beaten expectations year on year. The company purchased millions of shares making them the banks 4th largest investor.
Dale Solutions insiders believe that the stake invested amounts to over $2 billion at current share price; this could increase dramatically if the bank gets back to its highs of 2007.
Many investors now watch the movements of Paulson after he predicted the crash of 2008, now he is seen as the man to watch. Its expect now that many will invest back into the banking sector on the back of his actions.
Dale Solutions explain that Paulson’s company has been the darling of the fund sector for the last couple of years. The average fund last year lost around 20 percent, where his fund made a 36% percent gain.
Paulson’s actions show that he expects the Banking sector to rebound, in fact Dale Solutions has already seen signs of this happening as reported last week with the profits announced from several banks. Dale Solutions recommend that those investors looking for a diverse portfolio to take up some banking stocks to supplement their portfolio strategy.