Extended Stay, Houghton Mifflin & Cobalt International Energy Are Billionaire John Paulson’s Top Holdings from Small-Cap Space

Houghton Mifflin Harcourt Co (NASDAQ:HMHC) is next on the list with Paulson & Co holding 30.91 million shares, flat over the quarter; the value of the stake amounts to $640.2 million, according to the latest 13F filing. The investor initiated a stake in Houghton Mifflin Harcourt Co (NASDAQ:HMHC) also during the last three months of 2013, and saw the stock appreciate by 19.3% during the last year.

The company provides education solutions for educational institutions and consumers worldwide. Its revenue decreased by 11.37% in the fourth quarter to $265.5 million from $299 million a year earlier. Along with this, Houghton Mifflin Harcourt Co (NASDAQ:HMHC) reported fiscal fourth-quarter loss $0.59 per share, versus $0.46 per share a year earlier. For the full year, revenue fell slightly to $1.37 billion from $1.38 billion, but net loss remained unchanged at $0.79 per share.

Among other investors, Anchorage Advisors disclosed holding 21.39 million shares of Houghton Mifflin Harcourt Co (NASDAQ:HMHC),, the value of the stake amounting to $442.98 million; the position is the largest in terms of value in the fund’s 13F portfolio.

Next in line is Cobalt International Energy, Inc. (NYSE:CIE), in which the fund disclosed holding 41.75 million shares, down by 1% on the quarter, with the value of the stake amounting to $371.17 million. Furthermore, Cobalt International Energy, Inc. (NYSE:CIE)’s stock lost almost 45.7% in 2014. In February, Deutsche Bank and Howard Weil lowered their price targets on the stock to $21.00 and $13.00 respectively, reiterating ‘Buy’ and ‘Sector Outperform’ ratings. Among the funds that we track, Israel Englander’s Millennium Management reported holding 14.07 million shares of Cobalt International Energy, Inc. (NYSE:CIE), up by 104% on the quarter, valued at $125.04 million as of the end of 2014.

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