In this article, we will take a look at the 9 Best Long-Term Stocks to Buy According to D. E. Shaw.
David E. Shaw, a Stanford University alumnus, is among of the hedge fund managers who have mastered the complexities of quant trading and routinely generating significant returns. Shaw’s two main funds, Composite and Oculus, under the D.E. Shaw hedge fund, have continuously produced an average net return of 12% through a quantitative investment strategy.
2025 is also shaping up to be an eventful year for the hedge fund, as D.E. Shaw sought to raise $5 billion for the launch of its Cogence Fund, which would be its inaugural multi-strategy hedge fund managed only by human traders as opposed to computer algorithms. Cogence, which was scheduled to begin trading on October 1, will use fundamental analysis to find global opportunities in credit and stocks, enabling traders to make snap decisions about timing, pricing, and risk.
The launch comes at a time when many major hedge funds remain closed to outside investors, leaving traders looking for substantial discretionary mandates with few options. This applies to D.E. Shaw as well: over the last decade, Shaw’s Composite Fund and the macro-focused Oculus Fund have both mainly remained closed.
David E. Shaw of D.E. Shaw
Our Methodology
For this list, we picked stocks from D. E. Shaw’s 13F portfolio as of the end of the second quarter of 2025. These equities have been a part of the hedge fund manager’s portfolio for at least 5 years.
We have added the performance of each stock from the end of Q2 2025 to November 11, providing readers with insight into how D.E. Shaw’s portfolio picks have played out so far.
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).
9. Boston Scientific Corporation (NYSE:BSX)
Share Price Return Between July 1 and November 11: -2.18%
D.E. Shaw’s Q2 Stake Value: $725.5 million
Number of Hedge Fund Holders: 100
Boston Scientific Corporation (NYSE:BSX) ranks among the best long-term stocks to buy according to D. E. Shaw. On October 23, UBS maintained its Buy rating on Boston Scientific Corporation (NYSE:BSX) shares, and increased its price target to $140 from $135. The price target raise comes after Boston Scientific’s quarterly results, which showed organic sales and earnings per share growth that surpassed both UBS and consensus expectations, with solid revenue growth of 21.4% year-over-year.
The company generated $5,065 million in net revenue for the third quarter, representing 15.3% year-over-year organic growth. Meanwhile, it produced adjusted earnings per share of $0.75 for the quarter, substantially higher than the $0.71 consensus estimate. Following the results, Boston Scientific Corporation (NYSE:BSX) increased its full-year 2025 outlook, now anticipating roughly 20% growth and adjusted EPS of $3.02-$3.04, up from earlier estimates.
Moreover, the company’s FARAPULSE product line saw roughly 63% organic worldwide expansion, with US growth improving by 40 percentage points on a comp-adjusted basis. The product also experienced faster growth abroad, although at a slower mid-single-digit pace.
According to UBS, Boston Scientific’s WATCHMAN device experienced 35% organic sales growth for the fifth consecutive quarter, as product acceptance continues to climb.
Boston Scientific Corporation (NYSE:BSX) is a global leader in the manufacture of medical devices, including stents, brain stimulation systems, heart monitors, and catheters.
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