In this article, we will examine the 15 Best Stocks to Invest In According to Billionaire D.E. Shaw.
Deep buying is one strategy that has kept on giving in a year of unending uncertainties. With investors embarking on a buying spree with every pullback the equity market has ended up recouping all the losses attributed to the US tariffs and trade war and has powered to record highs.
Tom Lee, head of research at Fundstrat Global Advisors, insists there is room for additional gains, with the S&P 500 likely to reach 7,000.
“We would not lean bearish because of shutdowns,” Lee wrote in a note to clients. “If stocks are down, we would be dip buyers. This is something to be mindful of, as we may hear of dire warnings of calamity because of the shutdown.”
D E Shaw is one hedge fund that has navigated a challenging environment to deliver solid returns on its flagship funds. Founded in 1988 by billionaire investor David E. Shaw, the hedge fund has had an impressive year even as the tariff war rattled the markets.
Oculus, the hedge fund’s second biggest fund, soared 4.6% in July, doubling its return for the year to 9.6%. Meanwhile, the flagship multi-strategy Composite fund gained 1.5% in July, boosting its year-to-date returns to 9.3%. The quantitative hedge fund is known for leveraging sophisticated mathematical modeling and algorithms to identify high-risk risk-reward opportunities.
Additionally, David E Shaw’s investment portfolio reflects an appreciation for both diversification and concentrated bets on transformative companies. By spreading risks across ETFs and high-growth innovators, the hedge fund has captured both stability and upside. The investment strategy reflects Shaw’s confidence in technology and data to enhance returns.
The hedge fund’s multi-strategy composite Fund generated an 18% return in 2024 as the Oculus Fund soared 36%.
With that in mind, let’s take a look at some of the best stocks to invest in, according to billionaire David E. Shaw, as the equity market is expected to make higher highs heading into 2026.
David E. Shaw of D.E. Shaw
Our Methodology
To come up with our list of the best stocks to invest in according to billionaire D.E. Shaw, we scanned D.E. Shaw’s portfolio and picked its top 15 holdings. We have also examined each stock’s performance from the end of the second quarter (June 30) to October 28 to provide readers insight into whether the quant hedge fund has been right or wrong about betting on the stock, so far. Additionally, we have reported broader hedge fund sentiment for each stock, as of Q2 2025. We have ranked the stocks in ascending order based on the value of D.E. Shaw’s equity stakes in them.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Stocks to Invest In According to Billionaire D.E. Shaw
15. AerCap Holdings N.V. (NYSE:AER)
Stock Performance (end of Q2 to October 28): 4.19%
Number of Hedge Fund Holders: 63
D .E. Shaw Equity Stake: $505.86 Million
AerCap Holdings N.V. (NYSE:AER) is one of the best stocks to invest in, according to billionaire D.E. Shaw. On October 29, AerCap Holdings N.V. (NYSE:AER) reported robust third quarter 2025 results, posting $1.216 billion in net income and a record $865 million in adjusted earnings. The company raised its full-year adjusted EPS guidance to $13.70, driven by strong asset sales totaling $1.5 billion and a record $332 million gain-on-sale.
The firm also recovered $475 million related to assets lost in the Ukraine conflict, bringing total recoveries since 2023 to $2.9 billion. AerCap achieved a 27% return on equity and increased its book value per share by 20% year-over-year. Operational highlights included a major aircraft deal with Airbus, certification and delivery of Boeing 777-300ERSF freighters, and $1.5 billion in operating cash flow. The company’s adjusted debt-to-equity ratio stood at 2.1 to 1 at quarter-end.
Earlier on October 15, AerCap Holdings N.V. signed a seven-year agreement with GE Aerospace to provide lease pool management services for the GE9X engine. Under the terms of the agreement, AerCap is to provide GE9X shop visit management, lease return coordination, and technical services. The services will ensure GE Aerospace has a robust network of 777X aircraft that fly reliably and safely. The company is increasingly investing in capabilities to support GE9X customers as the engine nears entry into service.
“This agreement further strengthens our partnership with GE Aerospace and extends our engine leasing relationship into the next decade. It also adds GE’s newest technology engine, the GE9X, to our servicing capability, leveraging our existing industrial network to provide world-class support to GE Aerospace and their customers,” said Tom Slattery, Executive Vice President of AerCap Engines.
AerCap Holdings N.V. (NYSE:AER) is the world’s largest aviation leasing company, providing airlines with long-term leases for commercial aircraft, engines, and helicopters. The company offers comprehensive fleet solutions, including both new and used assets, and provides other aviation-related services, such as engine and aircraft trading, component services, and aftermarket support.
14. Roblox Corporation (NYSE:RBLX)
Stock Performance (end of Q2 to October 28): 33.13%
Number of Hedge Fund Holders: 75
D .E. Shaw Equity Stake: $519.70 Million
Roblox Corporation (NYSE:RBLX) is one of the best stocks to invest in, according to billionaire D.E. Shaw. On October 30, Roblox Corporation (NYSE:RBLX) posted impressive third-quarter results, with bookings reaching $1.92 billion, up 70% from the previous year and well ahead of expectations.
Despite a net loss of $0.37 per share, the figure beat analyst forecasts. The platform saw a sharp rise in user engagement, with daily active users climbing to 151.5 million and total hours spent on the platform jumping 91%. Revenue grew 48% year-over-year to $1.36 billion, driven by a mix of viral content and strategic investment in its creator ecosystem. The company also reported robust cash flow, with operating cash flow up 121% and free cash flow up 103%.
Roblox Corporation (NYSE:RBLX) operates a user-generated online gaming platform where users can create, share, and play 3D experiences made by a global community. The company’s free-to-play platform provides developers with tools to build games, such as Roblox Studio. It earns revenue by taking a cut of sales of its virtual currency, Robux, and from advertising.
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