In this article, we will take a look at the 10 Best Stocks to Buy According to D1 Capital’s Daniel Sundheim.
Daniel Sundheim is the founder and chief investment officer of D1 Capital Partners, a global investment firm active across both public and private markets. Established in 2018, the hedge fund successfully endured the COVID-19 slump by relying on an aggressive investment strategy based on fundamental research. D1 currently manages a portfolio of $8 billion in public investments and $12 billion in private holdings. The firm has maintained a significant presence in Silicon Valley, investing in major players such as SpaceX, which accounts for about a third of its private portfolio.
Of course, staying on the winning side is nearly impossible for any investor, including billionaires like Daniel Sundheim. Back in 2022, Sundheim endured one of the most challenging years of his career as broader equity markets came under pressure from rising inflation. While the S&P 500 sank 19.4%, D1 Capital underperformed with a 30.5% decline, largely due to its substantial private-market bets on tech startups, whose valuations plummeted sharply. D1 Capital was among several high-profile hedge funds caught in this downturn. However, the firm rebounded in 2023, rising more than 19% after strategically reducing some of its private investments.
According to an investor letter received by Financial Times, D1 Capital’s public portfolio returned 44% in 2024, driven by strategic investments in European stocks. This incredible run of gains continued into 2025, with the fund gaining 7.7% in January. D1’s approach of capitalizing on valuation discounts in European markets relative to US rivals seems to have been largely successful. Speaking on this, Sundheim stated in the letter:
“We believe there is currently an extremely attractive opportunity to buy great businesses that trade on non-U.S. exchanges.”
The billionaire is also a major proponent of artificial intelligence, and believes that public companies represent the best way to capitalize on the AI boom. Speaking in late 2024, he explained that, unlike previous technological breakthroughs, AI would have an impact on almost every sector, prompting companies across industries to invest heavily in its development. Large public corporations, he noted, have the resources and scale required to effectively implement AI initiatives, giving them an advantage over smaller, more agile firms. Sundheim further stressed that companies investing in AI today are doing so with a long-term view, realizing that the substantial infrastructure necessary suggests returns are likely to come over the next decade, not the next quarter.
Daniel Sundheim of D1 Capital
Our Methodology
For this list, we picked stocks from D1 Capital Partner’s 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. 3M Company (NYSE:MMM)
D1 Capital Partners’s Stake as of Q4: $175.1 million
Number of Hedge Fund Holders: 79
3M Company (NYSE:MM) is a multinational industrial company that manufactures adhesives, abrasives, ceramics, and nanotechnology.
On April 24, UBS analyst Amit Mehrotra reiterated his Buy rating and $184 price target for 3M Company (NYSE:MM) shares. Following the company’s first-quarter results and subsequent talks with 3M, Mehrotra raised his 2025 earnings per share projection to $8 from $7.93. This change pushes his projection over the consensus estimate of $7.73. Mehrotra emphasized that 3M’s repeated earnings guidance of $7.60 to $7.90 represents a favorable sign. He also noted that the guidance now includes a 10-cent contingency or cushion, which was not previously included.
Despite a challenging macroeconomic climate, 3M Company (NYSE:MM) remained financially strong, returning $1.7 billion to shareholders and increasing its dividend by 4%. The firm also introduced 62 new products, a 60% increase over the previous year. Additionally, 3M Company (NYSE:MM) intends to raise share repurchases to $2 billion, demonstrating confidence in its future cash flows and financial stability.
9. Lineage Inc. (NASDAQ:LINE)
D1 Capital Partners’s Stake as of Q4: $219.8 million
Number of Hedge Fund Holders: 35
Lineage, Inc. (NASDAQ:LINE) is a global leader in temperature-controlled logistics, focusing on the storage and delivery of perishable goods. The company has a network of more than 480 strategically positioned properties totaling over 84 million square feet in North America, Europe, and Asia-Pacific.
Lineage, Inc. (NASDAQ:LINE) has increased its presence in the Pacific Northwest by acquiring three facilities from Bellingham Cold Storage. The deal, which comprises around 24 million cubic feet of space and 85 thousand pallet positions, expands Lineage’s substantial operations, which produced $5.34 billion in revenue over the previous year.
Lineage Inc.’s fourth-quarter and full-year 2024 earnings showed unchanged revenues of $5.34 billion. Despite this, the company expects adjusted EBITDA to grow in 2025, with a range of $1.35 billion to $1.4 billion. Additionally, Lineage declared a quarterly cash dividend of $0.5275 per share for the first quarter of 2025.
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