Paulson & Co. managed $3.26 trillion across just nine positions during Q4 2025. The fund saw minimal activity, adding one new stock and exiting one, while its five largest holdings consumed 89.1% of assets. MDGL alone represented 30.5% of the portfolio, followed by PPTA at 24.0%, BHC at 15.6%, AAMI at 11.2%, and NG completing the concentrated top five at 7.8%.

Paulson initiated one significant new equity position in Q4 2025. He acquired $67.81 billion of SOLSTICE ADVANCED MATLS INC (SOLS). The veteran investor’s materials bet hints at a specific corporate catalyst. He built his reputation identifying market dislocations and exploiting them. Paulson likely sees an undervaluation tied to a potential merger, spin-off, or industry consolidation. This substantial commitment reflects a conviction about a fundamental change in the advanced materials sector.

Paulson’s sole new position, SOLS, aligns with his established investment methodology. He consistently targets unique, event-driven scenarios. His historic 590% return from shorting mortgage-backed securities in 2007 demonstrated a singular skill for spotting major dislocations. The SOLS investment suggests he again identifies a specific, mispriced opportunity within a complex market structure. He executes significant, concentrated bets when he perceives such a distinct event unfolding.

John Paulson, the investor who identified the U.S. subprime mortgage bubble years before it burst, made precise adjustments to his Q4 2025 portfolio. His firm increased BHC holdings by 4%, elevating the position to $509.13 billion. Paulson simultaneously added 2% to THRY, expanding that stake to $26.30 billion. These calculated, small-percentage additions reflect Paulson’s characteristic pattern: he reinforces existing high-conviction event-driven or merger arbitrage plays rather than initiating new ones. The strategy mirrors his 2007 method of scaling into a thesis, albeit on a different side of the trade.

Paulson & Co. adjusted positions in Q4 2025, reducing its Madrigal Pharmaceuticals Inc. (MDGL) stake by 10%. This trim from an event-driven specialist signals evolving conviction on specific corporate catalysts for the biotech company. Paulson identified the U.S. subprime mortgage bubble years before it burst, generating a 590% return shorting mortgage-backed securities in 2007. His firm’s portfolio changes often precede shifts in expected outcomes.

Trimming MDGL by 10% suggests diminished enthusiasm for a near-term event, or a decision to deploy capital elsewhere for better risk-adjusted returns. Paulson’s strategies depend on precise market triggers; a reduction indicates those triggers appear less compelling. Capital allocation aligns with evolving market dynamics.