Paulson & Co., a New York hedge fund with $36 billion in assets, bought 25 million shares in Hewlett-Packard and 6 million shares in Lubrizol, valued at about $804 million, according to a regulatory filing Monday.
Leo Apotheker, who took over as Hewlett-Packard's CEO on Nov. 1, outlined his strategy for the first time on March 14, announcing a deeper push into software and the expanding market for computing delivered via the Web. The company is starting a cloud-computing service that will let developers create applications for consumers and businesses that run on HP servers, Mr. Apotheker said at the time.
Mr. Apotheker told top executives Monday that he's bracing for “another tough quarter” in the company's fiscal third quarter and urged deputies to “watch every penny and minimize all hiring.” Hewlett-Packard shares have fallen about 3% since the end of the first quarter.
Paulson also bought 17.3 million shares of Transocean Ltd., increasing his stake to 24.5 million shares, or 7.7% of the offshore driller. He's now the largest holder of the Swiss company.
Armel Leslie, a spokesman for Paulson, declined to comment.
Paulson & Co. has been betting on a global economic recovery, and expects to make money in the next two years with the stocks of companies going through bankruptcies, restructurings and reorganizations.