In this piece, we will discuss Billionaire Dan Loeb’s 10 Stocks with Huge Upside Potential.
Daniel Loeb, a billionaire investor, founded Third Point Management, which remains one of Wall Street’s most influential activist hedge funds. The investment firm boasts a concentrated portfolio, which is built around deep fundamental research, opportunistic activism, and event-driven investing. The firm manages 51 positions worth more than $7.6 billion as of mid-2025. Meanwhile, the fund’s flagship vehicle, Third Point Offshore, is executing disciplined stock selection and targeted exposure to resilient U.S. sectors, and advanced 7.5% in Q2 2025.
Dan Loeb highlighted in his Q2 2025 investor letter that he expects consumer, technology, and industrial stocks to outperform as corporate earnings and sentiment recover. The billionaire’s strategy is in line with the broader market sentiment, which is marked by strong investor confidence.
Both the S&P 500 and Nasdaq reached their all-time highs on October 7, 2025, with AI-related deal-making and renewed optimism over Federal Reserve policy driving the surge. Furthermore, the market is currently pricing in a 94.6% probability of a 25-basis-point rate cut at the Fed’s upcoming October meeting, according to LSEG data. Supporting growth-oriented equities, these macroeconomic factors favor selective equity investors like Loeb, whose strategy inclines toward companies with durable cash flows and high operating leverage.
With this backdrop, we will move to our list of Billionaire Dan Loeb’s 10 Stocks with Huge Upside Potential.
Dan Loeb of Third Point
Our Methodology
To curate our list of Billionaire Dan Loeb’s 10 Stocks with Huge Upside Potential, we analyzed Third Point’s 13F filings for Q2 2025, using Insider Monkey’s 13F filings database. We extracted all of the fund’s holdings and identified stocks with the highest estimated upside potential. We then ranked them based on their respective upside potential as of the time of writing. The list is presented below in ascending order of upside potential.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Billionaire Dan Loeb’s 10 Stocks with Huge Upside Potential
10. Vistra Corp. (NYSE:VST)
Upside Potential: 11.16%
Number of Hedge Fund Holders: 111
Third Point Management holds $242,262,500 worth of Vistra Corp. (NYSE:VST) shares, representing 3.18% of its portfolio.
On October 3, 2025, BMO Capital increased its price target on Vistra Corp. (NYSE:VST) from $229 to $236, maintaining an “Outperform” rating.
This price revision follows investor meetings as well as Vistra Corp. (NYSE:VST)’s recent project announcements. A day prior to the target revision, the Federal Energy Regulatory Commission approved the company’s acquisition of seven natural gas generation facilities from Lotus Infrastructure Partners. With this acquisition, Vistra expects to add 2,600 megawatts of capacity across multiple U.S. markets.
Furthermore, the investment firm cited the company’s reaffirmation that strong pricing premiums will be commanded by carbon-free resources. Meanwhile, 2025-2026 EBITDA forecasts are maintained, and longer-term estimates are revised upward through 2030.
Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company in the U.S. It is included in Dan Loeb’s stock portfolio.
9. Capital One Financial Corporation (NYSE:COF)
Upside Potential: 14.07%
Number of Hedge Fund Holders: 132
Third Point Management holds $383,862,443 worth of Capital One Financial Corporation (NYSE:COF) shares, representing 5.04% of its portfolio.
On September 24, 2025, a coalition of 18 U.S. states reached out to a federal judge, urging the judge to reject Capital One Financial Corporation (NYSE:COF)’s proposed $425 million settlement with depositors.
The coalition, calling the settlement inadequate and unfair, argued that the agreement, which was meant to resolve claims over frozen rates on “360 Savings” accounts, would mean over $2.5 billion in savings for the bank, while customers would be provided with only about $54 of the $717 each in lost interest.
Furthermore, they emphasized that Capital One Financial Corporation (NYSE:COF) would be allowed to continue its practices without significant changes, while depositors would be earning substantially lower interest rates than new account holders. Meanwhile, the company maintains its stance that the deal was reasonable, given litigation risks.
To resolve the matter, a final hearing is scheduled to take place on November 6, 2025, in Virginia federal court.
Operating across the U.S., Canada, and the United Kingdom, Capital One Financial Corporation (NYSE:COF) offers a wide range of financial products and services. It is included in Dan Loeb’s stock portfolio.
8. Workday Inc. (NASDAQ:WDAY)
Upside Potential: 19.87%
Number of Hedge Fund Holders: 76
Third Point Management holds $72,000,000 worth of Workday, Inc. (NASDAQ:WDAY) shares, representing 0.94% of its portfolio.
Workday Inc. (NASDAQ:WDAY) finalized its acquisition of Paradox on October 1, 2025. Paradox is a conversational AI hiring platform designed to streamline recruitment processes, especially for frontline industries.
With this acquisition, Workday Inc. (NASDAQ:WDAY) aims to expand its AI capabilities to create a unified, end-to-end talent acquisition suite. As a result, it will integrate automation into hiring, scheduling, and candidate engagement.
Meanwhile, a week earlier, BMO Capital reaffirmed its “Outperform” rating on Workday Inc. (NASDAQ:WDAY). The investment firm’s bullish stance stems from its confidence in the company’s long-term growth prospects. In particular, its acquisition of Paradox is expected to simplify hiring at scale and enhance recruiter efficiency, strengthening its positioning within the AI-driven human capital management market.
Workday Inc. (NASDAQ:WDAY) operates across the U.S. and international markets, providing enterprise cloud applications for finance, HR, and analytics. It is included in Dan Loeb’s stock portfolio.
