John Paulson Increases Stake in Bank of America (NYSE:BAC), Keeps Citigroup (NYSE:C) Unchanged

Most investment firms with over $100 million in holdings are required to file what is called a 13-F, which reports the various investments the firms engage in. John Paulson is one of the best in this area, and he continues to like the banking sector, especially Bank of America (NYSE:BAC), which he increased his number of shares by 11 percent in the bank to 167.8 million shares. Paulson didn’t increase his holdings in Citigroup (NYSE:C), but he didn’t sell either, maintaining his holdings in them.

Contrary to George Soros, who almost liquidated his entire holdings of Citigroup, Paulson evidently feels they could rebound in the near term, although the decision to not increase his stake seems to say that it’s a 50/50 chance that will happen. Soros obviously believes Citigroup’s unlikely run is over for now, and basically kept a nominal number of shares of the recovering bank.

Paulson holds an enormous number of shares of Citigroup, although the 506.7 million shares in the company is only the third-largest his hedge fund owns.

In another interesting difference between what Soros and Paulson did in the last quarter, Paulson decided to keep his stake in SPDR Gold Trust NYSE:GLD) intact, which is the largest of all his holdings, with 31.5 million shares. The largest holdings are determined by value and not the number of shares.

Also interested in Bank of America and holding a large position in them is Fidelity Management Group, which acquired 42.3 million shares in the last quarter, bringing their overall total to 256.8 million.

Paulson stated in the latter part of 2009 that he expects Bank of America to double in price in the next couple of years, with a price target of $29.81 for them. On Monday the shares closed at $16.35.