Billionaire John Paulson Standing Pat With His Top Small-Cap Picks

Next on the list is Houghton Mifflin Harcourt Co (NASDAQ:HMHC), in which Paulson’s stake remained unchanged during the first quarter at 30.91 million shares, though the value of the position increased substantially to $725.83 million by March 31. Houghton Mifflin Harcourt Co (NASDAQ:HMHC)’s stock is up by a staggering 24.19% so far this year. The $3.69 billion provider of education solutions is set to acquire Scholastic (NASDAQ:SCHL)’s Education Technology and Services business for $575 million. Houghton Mifflin Harcourt Co (NASDAQ:HMHC) estimates cost savings of $10 million to $20 million from the deal, that will be accretive in 2016. Kevin Michael Ulrich and Anthony Davis‘ Anchorage Advisors holds 21.39 million shares of Mifflin Harcourt, the second-largest position after Paulson’s own.

Grifols SA, Barcelona (NASDAQ:GRFS) occupies the third spot among Paulson’s top small-cap picks with the billionaire owning 17.80 million shares valued at $584.08 million as of March 31. The $11 billion healthcare company’s stock has struggled this year, with shares sliding by 5.3%. In contrast, the biotechnology industry is up by 17.63% during the same period. Grifols SA, Barcelona (NASDAQ:GRFS) produces life-saving protein therapies and has three primary divisions: Bioscience, Diagnostics, and Hospital. Israel Englander‘s Millennium Management holds about 1.16 million shares of Grifols SA, Barcelona (NASDAQ:GRFS) valued at $38.04 million.

Paulson held about 41.75 million shares of Cobalt International Energy, Inc. (NYSE:CIE) valued at $392.88 million in his fund’s portfolio at the end of the first quarter. The $4.10 billion exploration and production company has been in his portfolio since the first quarter of 2013. So far this year Cobalt International Energy, Inc. (NYSE:CIE)’s stock is up by nearly 10%. Among other stockholders of the company are Millennium Management and Phil Gross and Robert Atchinson’s Adage Capital Management which own 9.73 million and 3.76 million shares respectively.

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