Billionaire David Shaw’s High Upside Potential Picks Include Apple Inc. (AAPL)

The fund nearly quadrupled its holdings of Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) in the first quarter of this year, closing March with a stake of 5.6 million shares. The company is valued at 8 times forward earnings estimates; the stock price plunged after Freeport-McMoRan announced an acquisition of two oil and gas companies in December, and is currently down 16% in the last year. It’s possible the market may have overreacted to integration risk and the potential loss of focus on the core business. Billionaire John Paulson’s Paulson & Co. had 9 million shares in its own portfolio, per its filing.

According to the 13F, D.E. Shaw owned 1.3 million shares of Celgene Corporation (NASDAQ:CELG) at the beginning of April. The $50 billion market cap biotech company isn’t earning much right now compared to that valuation, and even the forward P/E is 17, but analysts expect high growth in earnings per share over the next several years and as a result the PEG ratio here is 0.9. Renaissance Technologies, whose founder Jim Simons has become a multi-billionaire on its success, more than doubled its own holdings of Celgene during Q1 (research more stocks Renaissance was buying).

Disclosure: I own no shares of any stocks mentioned in this article.