Annaly Capital Management Inc. (NLY): Billionaire Brian Higgins Is Loading Up on This Stock

We just covered Billionaire Brian Higgins’ 10 Stock Picks With Huge Upside Potential and Annaly Capital Management, Inc. (NYSE:NLY) ranks 10th on this list.

Annaly Capital Management, Inc. (NYSE:NLY) has featured in the 13F portfolio of King Street Capital since the third quarter of 2025. When the position was first disclosed, the fund owned 600,000 shares in the company. Filings for the fourth quarter of 2025 show that the fund owned over 1.4 million shares in the firm, up close to 137% compared to filings for the previous quarter. The company operates a diversified capital manager, engaged in the residential mortgage finance business. It invests in agency mortgage-backed securities collateralized by residential mortgages, non-agency residential whole loans, and securitized products within the residential and commercial markets.

GDOT Expands Aeva Tech (AEVA) CityOS Platform Across 30 Atlanta Intersections

Interest in Annaly Capital Management, Inc. (NYSE:NLY) is driven primarily by its role as a high-yield stabilizer in a shifting interest rate environment. The firm has performed a successful diversification beyond just Agency Mortgage-Backed Securities. It has shifted significantly toward Residential Credit and Mortgage Servicing Rights. These assets act as a natural hedge against rising rates because they become more valuable when refinancing activity slows down. Annaly’s residential credit arm, Onslow Bay, hit record volumes in Q4 2025. The firm has consistently out-earned its dividend. While many high-yield REITs were forced to cut distributions during the volatility of 2024 and 2025, Annaly generated an 8.6% economic return in Q4 2025 alone and over 20% for the full year.

While we acknowledge the risk and potential of NLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NLY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Safe Stocks to Invest In For Beginners and 10 Best Stocks to Buy According to Nancy Pelosi.

Disclosure: None. Follow Insider Monkey on Google News.