Paulson sees substantial upside for Genworth if firm splits
May 7, 2014 by Zachary Tracer and Kelly Bit
(Bloomberg) — Billionaire hedge fund investor John Paulson said Genworth Financial Inc. shares will probably rally as the company divests a stake in an Australian unit, and could gain further if the insurer splits itself in two.
“If the company chooses to spin off its mortgage-insurance and other life-insurance businesses into two separate companies, there could be substantial additional upside,” the money manager said in a letter to investors discussing first-quarter results at his Paulson & Co. funds.
Paulson has benefited from the rally of insurers including Richmond, Virginia-based Genworth and CNO Financial Group Inc.