John Paulson is the President and Portfolio Manager of Paulson & Co., which is ranked as the third largest hedge fund manager in the world with approximately $29 billion in investments. Paulson previously made billions by betting against the banks and shorting the market prior to the sub-prime meltdown. He is quite bullish on US stock markets and has recently said that equities risk premium is the most favorable of all asset classes now. This article will review 5 stocks recently purchased by Paulson in our search for stocks that have significant growth potential.

Life Technologies Corporation (LIFE)

Life Technologies has a market cap of $6.91 billion with a price to earnings ratio of 19.71. Its 52 week trading range is $35.30 to $57.25. Its last trading price was $38.27. It reported second quarter earnings 2011 of $941.14 million, an increase from first quarter earnings of $895.89 million. Second quarter net income was $95.47 million, an increase from first quarter net income of $93.69 million. It has quarterly revenue growth of 4.10% and a return on equity of 8.16%. Life Technologies does not pay a dividend.

One of Life Technologies´ closest competitors is the Agilent Technologies Inc (A). Agilent Technologies last traded at $31.96 and has a market cap of $11.10 billion. It has a price to earnings ratio of 11.15, quarterly revenue growth of 22.20% and a return on equity of 28.95%. This indicates that Agilent Technologies is performing better than One Life Technologies.

Paulson & Co holds 7,520,000 shares of One Life Technologies purchased at an average price of $53.00 per share. Based on the last trading price, they have made a return of -26.57%. To continue reading, click here