Paulson takes a large stake in Citi

[arbitragr]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aiZE.BBJzcWA&pos=7#

Nov. 14 (Bloomberg) -- John Paulson disclosed that his hedge-fund group acquired 300 million shares of Citigroup Inc. during the third quarter, while selling its entire stake of Goldman Sachs Group Inc.

 

... Betting on Recovery

 

Paulson ranked second in fund-manager earnings last year, according to Institutional Investor’s Alpha Magazine. His Credit Opportunities Fund soared almost sixfold in 2007 through wagers that subprime mortgages would sour. He started the Paulson Recovery Fund in 2008 to invest in financial firms hurt by mortgage writedowns.

[dcollon]

I would be careful about reading too much into some of these transactions.  Some of the large bank positions that they have reported for Paulson & Co. came about from Preferred conversions.