Billionaire Brian Higgins’ 5 Stock Picks With Huge Upside Potential

4. Surgery Partners, Inc. (NASDAQ:SGRY)

King Street Capital’s Stake: $158 Million

Analyst Upside Potential: 38%

Surgery Partners, Inc. (NASDAQ:SGRY) is a long-term holding in the 13F portfolio of King Street Capital. The fund first disclosed a stake in the company back in the third quarter of 2019. This holding comprised 120,000 shares. By the second quarter of 2020, the hedge fund had grown this to just under 2 million shares. Thereafter, it started trimming the stock, reducing ownership to 1 million shares by the end of 2020 and selling off the stake completely by the beginning of 2021. A new position was then opened in the third quarter of 2024. This comprised 1.45 million shares. Filings for the fourth quarter of 2025 show that the fund owned over 10.2 million shares in the firm, up close to 10% compared to filings for the previous quarter.

Elite investors have been rewarding Surgery Partners, Inc. (NASDAQ:SGRY) for a strategic pivot toward complex procedures like total joint replacements and cardiovascular surgeries in the outpatient setting. These procedures carry significantly higher reimbursement rates than traditional GI or ophthalmology cases. Even though 2026 guidance was measured due to insurance mix shifts, smart money views the underlying move toward high-acuity cases as the key to long-term double-digit EBITDA growth. Despite missing its $200 million acquisition target in 2025, the company entered 2026 with a massive pipeline. There are over 5,000 ambulatory surgery centers in the US, and the market remains highly fragmented. Surgery is the best-positioned vehicle to roll up these smaller centers and achieve economies of scale.