John Paulson Files Activist 13D on NovaGold Resources (NG) ~ market folly

Thursday, September 2, 2010

John Paulson Files Activist 13D on NovaGold Resources (NG)

As we've detailed in the past, John Paulson's hedge fund has owned NovaGold Resources (NG). But per a recent SEC filing, we get an update on his stake. Paulson & Co has disclosed a 9.1% ownership stake in NovaGold Resources (NG) with 20,181,818 shares. The filing was made due to activity on August 31st, 2010 and keep in mind that a 13D signifies activist intent. In the past, this had merely been a passive stake for Paulson.

His hedge fund originally acquired NG shares in an offering at $5.50 per share. However, his most recent position size is the same as it was back on June 30th, so he has not added to the stake recently. This NG position is undoubtedly part of Paulson's strategy to take equity stakes in gold miners via his new gold fund. Other recent gold related portfolio activity from Paulson includes a reduction in his Centamin Egypt position. We'll have to monitor as to what kind of activist agenda Paulson potentially has with his NovaGold stake, seeing how there were no intentions outlined in the filing itself.

Taken from Google Finance, Novagold Resources is "a precious metals company, which is engaged in the exploration and development of mineral properties in Alaska, the United States and British Columbia, Canada. The Company conducts its operations through wholly owned subsidiaries, partnerships and joint ventures. The Company is primarily focused on gold properties, some of which also have copper, silver and zinc resources."

Make sure to check out all of Paulson & Co's recent portfolio changes in our new quarterly newsletter: Hedge Fund Wisdom by Market Folly.

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