Billionaire Brian Higgins’ 5 Stock Picks With Huge Upside Potential

3. AGNC Investment Corp. (NASDAQ:AGNC)

King Street Capital’s Stake: $35 Million

Analyst Upside Potential: 42%

AGNC Investment Corp. (NASDAQ:AGNC) has had a stop-start relationship with King Street Capital. The fund first disclosed a stake in the company back in the first quarter of 2021. This position comprised 4 million shares but was sold off by the next quarter. A new position was then opened in the fourth quarter of 2022, consisting of just under 1.5 million shares. This, too, was sold off by the next quarter. In the third quarter of 2025, another position was opened, consisting of 1.3 million shares. Filings for the fourth quarter of 2025 show that the fund owned 3.2 million shares in the firm, up 145% compared to filings for the previous quarter.

Despite a comprehensive loss driven by geopolitical tensions in the Middle East in March, the core operations of AGNC Investment Corp. (NASDAQ:AGNC) outperformed expectations. The firm reported a Q1 2026 EPS of $0.42, surpassing the analyst forecast of $0.37. The net interest spread increased by 25 basis points, reaching 2.06%. Hedge funds are rewarding this operational robustness, as it proves the company can generate cash even when mortgage-backed security spreads widen temporarily. AGNC remains one of the most consistent monthly dividend payers in the REIT sector, currently yielding approximately 13.37%.