Billionaire Bruce Kovner’s 10 Stock Picks with Huge Upside Potential

4. Diamondback Energy Inc. (NASDAQ:FANG)

Caxton Associates’ Stake: $13.75 million

Number of Hedge Fund Holders: 53

Average Upside Potential as of May 7: 42.32%

Diamondback Energy Inc. (NASDAQ:FANG) acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. It develops the Spraberry and Wolfcamp formations of the Midland basin and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin.

Diamondback’s Oil and Natural Gas Sales segment generated $3.657 billion in Q1 2025 revenue, which was up from the $2.101 billion in the same quarter last year. This was attributed to increased average realized prices for oil, which stood at $70.95 per barrel. There was also a higher average daily oil production of 475.9 MBO/d, which was a year-over-year jump from the 273.3 MBO/d in Q1 2024.

The company’s updated full-year 2025 guidance projects oil production to be in the range of 480 to 495 MBO/d (857 to 900 MBOE/d). Diamondback Energy Inc. (NASDAQ:FANG) also plans to drill 385 to 435 gross wells and complete 475 to 550 gross wells with an average lateral length of ~11,500 feet. On May 6, Evercore ISI resumed coverage on Diamondback by assigning an Outperform rating and setting a price target of $165 per share.