9. Covidien (COV)
Company Profile: Based in the U.K., Covidien sells health-care products, such as medical devices and supplies, for use in clinical and home settings.Paulson's Investment: Paulson & Co. snatched 2 million shares of Covidien in the third quarter. The position had a market value of $88 million as of Sept. 30. Share Price Performance: Since the end of the third quarter, Covidien shares have climbed more than 7%.
8. Temple-Inland (TIN) Company Profile: Temple-Inland manufactures containerboard and converts it into a complete line of corrugated packaging. International Paper (IP) announced in September it will buy the company for nearly $4 billion. Paulson's Investment: Playing on the merger-arbitrage opportunity, Paulson picked up 3 million shares of Temple-Inland last quarter, which was worth $94 million as of Sept. 30. Share Price Performance: The takeover offer by International Paper has boosted Temple-Inland's share price by 50% this year. Since the deal was announced in early September, shares have ticked higher by only 2%.