Forbes – John Paulson’s investing philosophy is based on making sector bets according to his interpretation of the macroeconomic picture. The strategy paid off well when he made $3.7 billion in 2007 shorting the subprime mortgage market and another $5 billion in 2010 primarily by betting on gold. Times have been less spectacular since then, with his funds losing 36% in 2011 by being too early in financials and returning 1% in 2012.
In the fourth quarter, Paulson adjusted his sector strategy. He eased more out of financials and consumer cyclical stocks, and made increases to his real estate and energy holdings, according to GuruFocus’ sector weightings.
