John Paulson Takes Giant Stakes in 3 Companies


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After several years of middling returns, the Paulson Recovery fund recovered. It was the third top-returning large hedge fund in 2013, returning 45%, compared to 4.9% last year, according to Bloomberg.

John Paulson ( Trades , Portfolio ) in the fourth quarter also bought 16 new stocks, and holds 87 in total, in a portfolio valued at $20.3 billion. The new buys include massive stakes in three companies.

Extended Stay America Inc. ( STAY )

Paulson revealed owning a stake of 55,711,591 Extended Stay America Inc. shares, sized at 27.2% of the company's shares outstanding and 7.2% of Paulson's portfolio.


Extended Stay America held its initial public offering of 28,250,000 paired shares on Nov. 13, 2013. The company expected to raise $531.1 million from the offering which it would use to pay down debt. Its share price has appreciated 11% since the offering, trading around $26.49 on Tuesday.

Extended Stay America Inc. has a market cap of $5.42 billion; its shares were traded at around $26.49 with a P/E ratio of 98.10 and P/S ratio of 4.10. Extended Stay America Inc. had an annual average earnings growth of 15.10% over the past five years.

Houghton Mifflin Harcourt Company ( HMHC )

Paulson reported a stake of 30,912,558 shares of Houghton Mifflin Harcourt Company, sized at 2.6% of his portfolio, and 22.09% of the company.


Houghton Mifflin also held an IPO on Nov. 14, 2013, selling 18.25 million shares of the company, priced at $12 a share. Its share price has since gained 22.76% to trade around $19.47 on Tuesday.

Houghton Mifflin Harcourt Company has a market cap of $2.73 billion; its shares were traded with and P/S ratio of 2.0.

American Airlines Group Inc. ( AAL )

Finally, Paulson reported owning 8.5 million shares of American Airlines Group, worth 1.1% of his portfolio.


American Airlines changed its ticker symbol on Dec. 9, 2013, when it merged with US Airways. Its shares have gained almost 40% since the merger, to trade around $34.31 on Tuesday.

The company has a market cap of $11.51 billion, with a P/E of 10.3 and P/S of 0.2.

For more John Paulson (Trades, Portfolio) stocks, visit his portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here! About GuruFocus: tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
More Headlines for: HMHC , AAL , STAY

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