Rob Citrone, the billionaire chief of Discovery Capital Management, recently appeared on news platform CNBC to outline his views on the present market dynamics and discuss his stock picking techniques. Citrone, one of the richest men in the world, manages a 13F portfolio at his fund that was worth more than $1.8 billion at the end of the fourth quarter of 2025. During his appearance on CNBC, Citrone outlined the reasoning behind the high number of foreign stocks in his portfolio, noting that there was a substantial undervaluation in global emerging markets right now that had not been seen in over a decade. Citrone contended that the US market was beginning to fall behind relative to other assets. He gave two examples to prove his point. He noted that over the past year, the gains in dollar-based assets had been the weakest when compared to 19 other markets around the world. He also highlighted that the S&P 500 was up 11% over the past year, compared to the 34% gain in the iShares Core MSCI Emerging Market ETF over the same period.
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Warning that the Federal Reserve was trapped by sticky inflation, Citrone stated, “There’s no way the Fed’s cutting rates” as the market expected, leading him to be “bearish on US equities” while favoring “high-growth developing economies.” He argued that the current investment landscape was “dumber than it’s ever been in history” regarding how it mispriced corporate potential against sovereign risk, particularly in regions where he saw “idiosyncratic catalysts.” This was most evident in his view of Argentina’s policy shift, which he described as a “movie remake” that allowed for proactive investment because we have “better actors and better camera angles” this time. While positioning for a global regime shift where “India remains the structural growth story of the decade,” Citrone also maintained a hedge against systemic instability, noting he “wouldn’t be surprised to see gold hit $6,000” as a final safeguard. Ultimately, he credited his fund’s success to a fundamental philosophy where he sought to “analyze a country like a company” by focusing on the quality of its leadership.
READ MORE: 15 Stocks That Will Make You Rich in 10 Years.
Our Methodology
To compile our list of the best stocks to buy according to billionaire Rob Citrone, we reviewed the latest 13F filings of Discovery Capital Management. Next, we focused on the top 10 stocks in his portfolio. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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).
Best Stocks to Buy According to Billionaire Rob Citrone
10. GDS Holdings Limited (NASDAQ:GDS)
Discovery Capital Management’s Stake: $49 Million
GDS Holdings Limited (NASDAQ:GDS) has had a stop-start relationship with Discovery Capital Management. The stock first appeared in the 13F portfolio of the fund back in the first quarter of 2019. This stake comprised just under 500,000 shares. In the next quarter, this position was sold off completely. A new position was opened in the third quarter of the same year but was sold off as well by the beginning of next year. A small stake, comprising under 100,000 shares, was bought and sold off in the 2021. The present position, bought in the third quarter of 2025, comprised over 1 million shares, and was increased to 1.43 million shares in the fourth quarter of 2025, representing an increase of 36%.
GDS Holdings Limited (NASDAQ:GDS) has emerged as one of the most prominent China-based stocks in the US market in recent years. Even though Chinese stocks have faced macro headwinds amid a tariff war, hedge funds are bullish on the ability of GDS to emerge from these unscathed. One of the reasons for this sentiment is the launch of the China Real Estate Investment Trust by GDS in late 2025. Before the REIT launch, GDS traded at a depressed multiple of around 12x EBITDA. The C-REIT assets were valued at around 22x 2026 EBITDA, significantly higher than market expectations. The launch also allows GDS to monetize data center assets at premium valuations and reinvest capital into high-growth AI infrastructure.
9. VNET Group, Inc. (NASDAQ:VNET)
Discovery Capital Management’s Stake: $53 Million
VNET Group, Inc. (NASDAQ:VNET) has registered the most intense buying activity among all the top stocks in the 13F portfolio of Discovery Capital Management. The fund increased its stake in the company by 292% in the fourth quarter of 2025, compared to filings for the previous quarter. At the end of the year, it owned more than 6.3 million shares in the firm. Discovery has owned shares of the company in past years as well, but none have touched the highs registered at the end of last year. Previously, the highest number of shares owned by the fund in the company was 1.6 million, back in the fourth quarter of 2014.
VNET Group, Inc. (NASDAQ:VNET) is on the radar of elite hedge funds as a high-growth AI infrastructure play in China. In the fourth quarter of 2025, the company reported revenues of RMB 2.69 billion, beating analyst forecasts. This was primarily driven by a 47% year-over-year surge in wholesale revenue. The company also delivered a record 404 MW of capacity in 2025. Hedge funds are buying the 2026 guidance, which anticipates delivering another 450–500 MW to meet AI demand. Another important consideration is the balance between the traditional retail business of the firm with high-growth AI workloads. In Q4 2025 alone, VNET secured five wholesale orders totaling 135 MW. Management highlighted during the March earnings call that AI-driven demand was accelerating, with more customers seeking high-performance, liquid-cooled data center solutions.
8. Capital One Financial Corporation (NYSE:COF)
Discovery Capital Management’s Stake: $56 Million
Capital One Financial Corporation (NYSE:COF) first appeared in the 13F portfolio of Discovery Capital Management back in the first quarter of 2012. This position comprised over a million shares but was sold off within months. A new position was then opened in the fourth quarter of 2012. This stake, initially comprising 1.8 million shares, jumped to over 3.6 million shares before the end of next year before it was sold off. In the second quarter of 2025, a new position was opened comprising 241,000 shares. Filings for the fourth quarter of 2025 show that the fund owns 232,000 shares in the company, representing an increase of close to 15% compared to filings for the third quarter of 2025.
Hedge fund interest in Capital One Financial Corporation (NYSE:COF) has increased because of the massive Discover Financial acquisition. By owning Discover’s payment network, Capital One is transitioning into a closed-loop ecosystem similar to American Express. This allows them to bypass external interchange fees. Hedge funds are targeting the $2.7 billion in pre-tax synergies projected by the firm in 2027. Early 2026 data shows the company has already begun migrating its debit portfolio to the Discover network, a move expected to significantly boost margins. The firm is forecast to grow earnings by 27.5% per annum over the next three years, nearly double the 15.5% average for the broader US market.
7. Coherent Corp. (NYSE:COHR)
Discovery Capital Management’s Stake: $60 Million
Even though Coherent Corp. (NYSE:COHR) is one of the largest positions in the 13F portfolio of Discovery Capital Management, it is a recent addition to the list. The fund purchased a stake in the company in the fourth quarter of 2025, filings show. The firm develops, manufactures, and markets engineered materials, optoelectronic components and devices, and laser systems for the use in the industrial, communications, electronics, and instrumentation markets worldwide. The company has emerged as an AI powerhouse in recent years, especially in the context of mega deals with NVIDIA.
For example, at the 2026 OFC Technology Conference, Coherent Corp. (NYSE:COHR) announced a step function expansion of its partnership with NVIDIA. Under the deal, Coherent has secured a multibillion-dollar deal to supply co-packaged optics and high-power lasers that integrate directly onto GPU packages. As GPUs become more powerful, traditional electrical data transmission creates a bottleneck. Hedge funds are betting on Coherent’s tech to bring light to the chip, which is essential for the next generation of AI clusters. Hedge funds are also focused on the rapid shift in product mix toward higher-margin networking hardware. Coherent is currently ramping up production of 1.6T transceivers, which offer significantly higher margins than older 400G or 800G models. In February 2026, the company reported Q2 revenue of $1.69 billion, up 17% year-on-year, driven largely by the Datacenter & Communications segment, which now accounts for 72% of total revenue.
6. Grupo Televisa, S.A.B. (NYSE:TV)
Discovery Capital Management’s Stake: $63 Million
Grupo Televisa, S.A.B. (NYSE:TV) is a long-term holding of Discovery Capital Management, compared to other top stocks in the 13F portfolio. The fund first purchased a stake in the company back in 2012. This position comprised under a million shares and reached over 5 million shares in 2013 before being sold off. A new position was then opened in the fourth quarter of 2022. This stake comprised 4 million shares. Citrone has been steadily adding to this holding since the initial purchase. Filings for the fourth quarter of 2025 show that his fund owns over 21 million shares in the company, representing an increase of 20% compared to filings for the third quarter of 2025.
Grupo Televisa, S.A.B. (NYSE:TV) has attracted interest from investors on Wall Street based on projections of massive margin expansion resulting from the full integration of the cable/broadband and satellite business of the firm. Following the 2024 acquisition of AT&T’s remaining stake in Sky, Televisa now has 100% control. Managers are targeting the MXN 5-6 billion in annual synergies expected by late 2026 through the elimination of redundant roles and unified marketing. Another important catalyst for the stock is fiber migration. The company ended 2025 with 9 million homes passed by high-speed fiber-to-the-home and is on track to reach 16 million by the end of 2026. Hedge funds view this infrastructure upgrade as critical for reducing churn and increasing average revenue per user.
While we acknowledge the potential of TV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TV and that has 100x upside potential, check out our report about the cheapest AI stock.
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