Paulson Cut Stakes in Money-Losing Pharma Stocks Last Quarter

(Bloomberg) -- Hedge fund manager John Paulson reduced his stakes in several health-care stocks that have been dumped by investors this year.

In the third quarter, Paulson & Co. cut its position in generic drugmaker Teva Pharmaceutical Industries Ltd. by more than 60 percent, according to a regulatory filing Tuesday. Teva’s American depositary receipts have declined 68 percent in 2017. He reduced the number of shares he holds in Allergan Plc by almost 20 percent. Allergan, a maker of specialty pharmaceuticals, fell 18 percent this year.

In July, the firm said it was closing a two-year-old long-short equity fund to shift strategies after a steep drop in assets. The fund focused on health-care and pharmaceutical bets.

Paulson in the third quarter also sold 1.2 million shares of Mylan NV; 328,200 shares of Shire Plc; 974,400 shares of Valeant Pharmaceuticals International Inc. and 264,700 shares of Mallinckrodt Plc, according to the filing.

Paulson & Co. shot to fame betting on the collapse of the U.S. housing market. At his peak in 2011 Paulson managed $38 billion, half of it from outside investors. In June, Bloomberg News reported the firm managed $10 billion, including about $2 billion of client money.

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