0.28% Percent of George Soros’ Stock Portfolio Is in These 10 Small-Cap Stocks

In this article, we will explore the Small-Cap Stocks that Make Up 0.28% of George Soros’ Stock Portfolio.

Small-cap stocks started the year on a roll, bouncing off the Magnificent Seven’s shadow. However, the bounce back was short-lived, as the Russell 2000 was the first major index to plunge into correction territory after a 10% pullback from all-time highs. Fast forward, and the index has recouped some of its losses and is back in positive year-to-date territory.

As the small-cap index continues to outperform the overall market, with a 1% year-to-date gain compared to the S&P 500’s 4% loss, there is renewed optimism around small-cap stocks. The optimism stems from the fact that they tend to rebound more powerfully after a bear run.

The Russell 2000 index has averaged 85% gains in the year following the bottom over the last four bear markets. It is a whopping 32% more gain than the S&P 500 over the same period.

Morgan Stanley’s Chief Equity Strategist believes the dramatic volatility in the market is not the beginning of a deep sell-off but closer to the end. “This correction is mature in time and price,” he wrote.

While small-cap stocks have underperformed large-cap stocks over the past few years, State Street Chief Investment Strategist Michael Arone believes that could change soon. The prospect of an economic slowdown triggering lower interest rates bodes well for small-cap companies.

“Interest expense for small companies has been declining and should continue to fall as the Fed extends its rate cutting cycle,” Arone said.

Similarly, Small caps’ depressed valuations relative to the broader market also make them a compelling opportunity.

As one of the most successful investors on Wall Street, George Soros’ investment firm, Soros Fund Management, is often tracked to gauge the most promising sectors of the market. The fund deploys a macro strategy that focuses on identifying market biases and acting on mispriced assets. The fund boasts an impressive 1-year performance of 10.01%.

With that in mind, let’s take a look at some of the small-cap Stocks that make up 0.28% of George Soros’ stock portfolio, likely to outperform in the long run.

George Soros of Soros Fund Management

Our Methodology

To compile the list of the 10 small-cap stocks in billionaire George Soros stock portfolio, we analyzed Soros Fund Management’s entire equity portfolio as of Q4 2025 13F, available in Insider Monkey’s database. We then compiled an initial list of small-cap companies with a market cap between $250 million and $2 billion. From this pool, we identified 10 stocks that are popular with other elite hedge funds. The final list is ranked the stocks in ascending order by the value of Soros Fund Management’s stakes in them.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Small-Cap Stocks that Make Up 0.28% of George Soros’ Stock Portfolio

10. Purecycle Technologies Inc (NASDAQ:PCT)

Soros Fund Management Equity Stake: $505,977

Number of Hedge Fund Holders: 32

Purecycle Technologies Inc (NASDAQ:PCT) is one of the small cap stocks that make up 0.28% of George Soros stock portfolio. On April 2, Cantor Fitzgerald reiterated its Overweight rating on Purecycle Technologies Inc (NASDAQ:PCT) stock with a price target of $14. For this action, Cantor pointed to Purecycle’s expanding production, particularly pointing to the company’s record output in Q4 2025. The firm remains positive on Purecycle as the company continues to expand and upgrade its capacity.

Purecycle produced 7.5 million pounds of recycled plastic material in Q4, marking an increase from 7.2 million pounds in Q3 and 3.6 million pounds in Q4 2024. This output increase was supported by the company adding a third shift at its Denver feedstock processing facility. Purecycle is also seeing high production at its Ironton purification facility.

At the end of Q4 2025, Purecycle had more than 170 projects in its commercial pipeline, up from 100 projects in the previous quarter.

Purecycle has outlined an ambitious growth plan. It aims to build a one-billion-pound global production capacity before 2030, with sites in the US, Europe, and Asia. This expansion plan includes a 130-million-pound facility in Thailand and another 130-million-pound facility in Belgium. The company is also working on a Gen 2 production facility with a capacity of more than 300 million pounds in Augusta, Georgia.

On March 25, Purecycle announced that it had signed a €40 million grant with a European climate agency to fund its project for a production facility in Belgium. Purecycle is setting up this facility in the Belgian port city of Antwerp. The company says its Antwerp facility will help its customers comply with EU regulations, such as recycled content in packaging.

Purecycle Technologies Inc (NASDAQ:PCT) is engaged in the recycling business. It specifically produces high-quality plastic material from recycled plastic waste. Purecycle’s recycled plastic resin has broad applications, including packaging and making automotive parts. The company was founded in 2015 and is based in Orlando, Florida.

9. Compass Diversified Holdings (NYSE:CODI)

Soros Fund Management Equity Stake: $599,170

Number of Hedge Fund Holders: 21

Compass Diversified Holdings (NYSE:CODI) is one of the small cap stocks that make up 0.28% of George Soros stock portfolio.

On March 30, Compass Diversified Holdings (NYSE:CODI) announced that it had agreed to sell the food service business of its subsidiary Sterno. Compass Diversified is selling the business to Archer Foodservice Partners, and the deal is valued at $292.5 million.

Compass Diversified acquired Sterno in 2014 for around $163 million. The food service business being sold generated around $30.3 million in adjusted EBITDA for Sterno. Sterno also has a home fragrance business, which Compass Diversified has retained. The home fragrance business operates under the Rimports brand and is based in Provo, Utah. This business manufactures and distributes home fragrance products in both branded and private-label options.

If all goes well, Compass Diversified expects to close the sale of Sterno’s food service business in May 2026. The company plans to use proceeds from this transaction to clean up its balance sheet by repaying outstanding debt. Following the anticipated debt repayment, Compass Diversified expects its net leverage ratio on senior secured debt to drop below 1.0x.

On March 19, William Blair reiterated its Outperform rating on Compass Diversified Holdings (NYSE:CODI) stock, noting that the stock was undervalued. William Blair analysts pointed out that asset sale and leverage improvement would provide tailwinds for Compass Diversified stock.

Moreover, the analysts see the company using capital for share repurchases as leverage is reduced. Compass Diversified suspended its common shareholder distribution program last year to allow it to strengthen its financial position.

Compass Diversified Holdings (NYSE:CODI) is a private equity firm. It acquires controlling stakes in profitable businesses in diverse sectors and prefers to invest in North American companies. It usually holds investments for between five and seven years. Compass Diversified has been around since 1998 and has its headquarters in Westport, Connecticut.

8. Two Harbors Investment Corp (NYSE:TWO)

Soros Fund Management Equity Stake: $750,036

Number of Hedge Fund Holders: 18

Two Harbors Investment Corp (NYSE:TWO) is one of the small cap stocks that make up 0.28% of George Soros stock portfolio.

On March 27, Jones Trading reiterated its Hold rating on Two Harbors Investment Corp (NYSE:TWO) stock after the REIT company announced a sweetened merger deal with CrossCountry.

Two Harbors announced on March 27 that CrossCountry boosted its buyout offer to $10.80 per share from the previous offer of $10.75 per share. It also said that CrossCountry agreed to cover termination fees tied to the canceled merger agreement with UWMC.

Back in December 2025, Two Harbors had agreed to merge with UWMC, and it had even scheduled a special shareholder meeting for April 7 to seek approval for that merger. But it changed its mind, choosing instead to be acquired by CrossCountry.

Initially, CrossCountry offered to pay $10.75 per share for Two Harbors. But a few days later, it came back with a better offer, agreeing to pay $10.80 for every share of Two Harbors. And it’s an all-cash offer. Moreover, CrossCountry agreed to pay $25.4 million in termination fees to UWMC on behalf of Two Harbors.

According to Jones Trading, CrossCountry’s all-cash offer for Two Harbors is reasonable. Two Harbors’ board has unanimously approved the CrossCountry deal and recommended that Two Harbors shareholders approve it also. If all goes well, Two Harbors expects the transaction to close in Q2 2026.

Two Harbors Investment Corp (NYSE:TWO) is a real estate investment trust (REIT) based in Saint Louis Park, Minnesota. It invests in and manages residential mortgage-backed securities. It handles securities such as adjustable rate mortgage loans and hybrid mortgage loans. It also acts as a servicer for regular residential loans through its RoundPoint subsidiary.

7. Voyager Technologies Inc (NYSE:VOYG)

Soros Fund Management Equity Stake: $1.35 Million

Number of Hedge Fund Holders: 35

Voyager Technologies Inc (NYSE:VOYG) is one of the small cap stocks that make up 0.28% of George Soros stock portfolio.

On March 30, Citi initiated coverage of Voyager Technologies Inc (NYSE:VOYG) stock with a Buy rating and a price target of $36. Voyager is a defense, national security, and space technology company. For this bullish view on Voyager stock, Citi pointed out that the company is well-placed to benefit from the wave of long-term spending trends in the defense and space industries.

According to Citi analyst John Godyn, geopolitical tensions are driving urgency in defense and space programs. In particular, the analyst noted that the Middle East conflict is accelerating demand for advanced defense capabilities, and that Voyager stands to reap from the increased defense investment and procurement.

In the space industry, Voyager stands to benefit from the growing interest in the space economy, including lunar exploration programs. Just this month, NASA launched the Artemis II mission, a historic crewed lunar flyby flight.

Voyager provides space solutions to government and commercial customers. The company is participating in developing Starlab, the next-gen space station. Starlab is being built as the replacement of the International Space Station, which is planned to be retired in 2030. Voyager is working alongside Airbus, Palantir Technologies, Mitsubishi, and other companies on the Starlab project.

On March 30, Voyager announced that it had won a contract to test a free-flying robotic system on ‌the International Space Station. It would undertake the space demonstration with the robotics startup Icarus ​Robotics.

Citi sees 2026 as a particularly pivotal year for Voyager, pointing to the company’s potential participation in the Pentagon’s Golden Dome missile defense program. Voyager guided its 2026 revenue in the band of $225 million to $255 million, above the Wall Street forecast of roughly $230 million.

Denver-based Voyager Technologies Inc (NYSE:VOYG) is an American defense, national security and space technology company. Voyager operates through three business segments. Its defense unit offers a variety of defense systems, including solid propulsion and signal intelligence systems. The company provides space solutions to government, commercial, and academic clients.

6. Grocery Outlet Holding Corp (NASDAQ:GO)

Soros Fund Management Equity Stake: $1.39 Million

Number of Hedge Fund Holders: 29

Grocery Outlet Holding Corp (NASDAQ:GO) is one of the small cap stocks that make up 0.28% of George Soros stock portfolio.

On April 2, Grocery Outlet Holding Corp (NASDAQ:GO) announced the appointment of two directors with retail experience to its board. It said that these appointments followed a national search for suitable candidates, and that a leading independent search firm helped with this task.

The newly appointed directors are Frances Allen and Felicia Thornton. According to Grocery Outlet, Allen brings four decades of experience in the consumer and food industry. Allen previously held executive roles at companies like Checkers Drive-In Restaurants, Boston Market Corporation, and Jack in the Box Inc.

Thornton, the other newly added director, brings more than 30 years of executive leadership experience in the retail and grocery sectors. Thornton previously served in executive and director roles at companies like Number Holdings (99 Cents Only Stores), Demoulas Super Markets, Inc. (Market Basket), Kroger, and Albertsons.

Grocery Outlet’s board chairman, Eric Lindberg, said the appointments of Allen and Thornton align with Grocery Outlet’s strategic priorities.

Notably, these board additions come at a time when Grocery Outlet insiders have continued to show confidence in the company. On March 27, Grocery Outlet board member Erik D. Ragatz purchased $882,500 worth of the company’s shares. That followed a purchase of around $717,000 worth of the company’s shares by its CEO Jason J. N. Potter, between March 23 and March 24.

Grocery Outlet released its Q4 2025 earnings results in early March. The report showed revenue increased 10.7% to $1.22 billion and gross margin expanded slightly to 29.7% from 29.5%. The company closed 2025 with $69.6 million of cash and cash equivalents.

Grocery Outlet Holding Corp (NASDAQ:GO) is an American discount grocery retailer. It sells heavily discounted products sourced directly from manufacturers. Its stores offer a broad mix of products, including fresh produce, dairy, meat, frozen food, beer, and general merchandise. Grocery Outlet mostly serves shoppers through a network of local independently operated stores. It has a network of more than 540 store locations across 16 states in the US.

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