Billionaire Steve Cohen’s Top 5 Small-Cap Stock Picks

4. Domtar Corporation (NYSE: UFS)

Number of Hedge Fund Holders: 25

It of the providers of fiber-based products such as packaging paper, specialty paper, fiber for cables, absorbent hygiene, and market pulp products. Domtar has 8,000 employees, and its products are sold in 50 countries. The wide market already contributes to a good profile for this company in Steve Cohen’s top 10 small-cap stock picks. Some of the company’s latest and notable developments include:

• The signing of an accelerated share repurchase agreement with JPMorgan Chase for Domtar’s shares worth $200 million.
• The agreement will facilitate the payment of $200 million for 4.43 million shares to be delivered initially.
• The company will determine the final number of shares to buy back through a daily volume-weighted average of its common stock at the time of the agreement’s valuation period.
• Domtar will fund the share repurchase activity through available cash. This includes the cash that it gained after selling its personal care division in March 2020.

The company is also getting the attention of the smart money, as 25 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter, up from 24 funds a quarter earlier.