John Paulson's Q3 2025 Portfolio Moves: Strategic Shifts and What They Reveal About Market Opportunities

John Paulson, the legendary investor known for his contrarian bets during the 2008 financial crisis, has once again made headlines with his Q3 2025 portfolio adjustments. His latest moves, disclosed in the SEC's 13F filings, reveal a sharp reallocation of capital toward healthcare and pharmaceuticals while scaling back exposure to gold and financials. For tactical investors, these shifts offer a window into Paulson's evolving view of macroeconomic risks and sector-specific opportunities.

Key Portfolio Adjustments: Bausch Health and the Exit from Gold

Paulson's most striking move in Q3 2025 was a 115.77% increase in shares of Bausch Health Companies Inc (BHC), bringing his total stake to 70.76 million shares. This position now accounts for 8.25% of the portfolio, valued at $456.38 million. The surge in BHC reflects Paulson's confidence in the pharmaceutical sector's resilience amid inflationary pressures and regulatory tailwinds.

Conversely, the fund exited its entire holdings in Seabridge Gold (SA) and Equinox Gold (EQX), signaling a strategic retreat from the gold sector. These exits, which had previously been a cornerstone of Paulson's portfolio, contributed a -2.2% drag on the portfolio. While the fund still holds gold-related names like Perpetua Resources (PPTA) and NovaGold Resources (NG), the reduction in exposure suggests a recalibration of risk in hard assets.

Sector Reallocation: Healthcare Dominance and Financials Trimmed

Paulson's Q3 2025 portfolio is now heavily concentrated in healthcare and biotechnology, with Madrigal Pharmaceuticals (MDGL) and Bausch Health (BHC) accounting for 31.4% and 10.9% of the portfolio according to analysis. Despite trimming MDGL shares by 8.71%, the fund's healthcare allocation remains robust, underscoring its bet on innovation-driven growth in therapeutics and diagnostics.

Financials, meanwhile, saw a notable reduction. The fund cut its stake in Acadian Asset Management (AAMI) by 13.48%, a move that aligns with broader market skepticism toward asset managers amid low interest rates and regulatory scrutiny. This shift highlights Paulson's focus on sectors with clearer revenue visibility and less sensitivity to macroeconomic volatility.

Position Sizing and Tactical Implications

Paulson's approach to position sizing in Q3 2025 reflects a disciplined, high-conviction strategy. His $456 million bet on BHC-a 115.77% increase in shares-demonstrates a willingness to scale up in companies with strong cash flow generation and defensiveness. This contrasts with his smaller, more cautious entries into technology stocks like Juniper Networks (JNPR) and Alphabet (GOOG), which together account for just 0.58% of the portfolio according to portfolio data.

The fund's exit from gold stocks also speaks to its tactical flexibility. While gold has traditionally served as a hedge against inflation, Paulson's reduced exposure may indicate a belief that central banks' tightening cycles have peaked, diminishing the metal's appeal. This reallocation mirrors broader market trends, where investors are pivoting toward sectors with earnings resilience over speculative plays.

Broader Market Opportunities: What Paulson's Moves Reveal

Paulson's Q3 2025 portfolio adjustments suggest several key insights for tactical investors:
1. Healthcare as a Safe Haven: With aging populations and regulatory tailwinds, the sector offers durable cash flows and innovation-driven growth. Paulson's heavy weighting in biotech and pharma signals a long-term bet on this trend.
2. Gold's Diminishing Role: The exit from gold stocks implies a shift in risk perception, possibly anticipating a slowdown in inflation or a more dovish monetary policy outlook.
3. Disciplined Diversification: While concentrated in core sectors, Paulson's small forays into technology (e.g., Alphabet) reflect a cautious diversification strategy, balancing high-conviction bets with lower-risk, high-growth opportunities.

Conclusion

John Paulson's Q3 2025 portfolio moves underscore a strategic pivot toward healthcare and away from gold, reflecting both macroeconomic recalibrations and sector-specific fundamentals. For investors, these shifts highlight the importance of aligning with sectors that offer resilience and innovation, while remaining agile in the face of evolving market dynamics. As always, Paulson's playbook serves as a masterclass in tactical positioning-prioritizing conviction, liquidity, and adaptability.