Hedge Fund Paulson & Co Buys Even More Cadbury (CBY) ~ market folly

Thursday, November 12, 2009

Hedge Fund Paulson & Co Buys Even More Cadbury (CBY)

Literally just yesterday we touched on the fact that hedge fund manager John Paulson is betting on the Cadbury (CBY) buyout by buying shares. Well, he has just bought even more. Paulson purchased 6,395,000 more shares at a price of 759.96 pence each. This brings his total securities exposure to 26,768,256 shares. As we touched on yesterday, Paulson also has 8,116,401 shares of exposure through CFD derivatives. The hedge fund now has an aggregate ownership stake of 2.54% of the company with 34,884,657 shares represented. Here are screenshots of the regulatory filings:

(click to enlarge)

(click to enlarge)

Paulson & Co has now bought shares of CBY as the price heads higher, implying that they are confident that Cadbury will receive a higher bid from suitor Kraft Foods (KFT). As always we'll continue to monitor the situation. Stay tuned this coming week as we'll be starting the next leg of our hedge fund portfolio tracking series where we'll update the arbitrage heavy equity portfolio of John Paulson's firm and many other prominent hedge funds. In the mean time, you can read up on Paulson's big bet against the US dollar.

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