In this article, we will discuss Billionaire Lee Ainslie’s 10 Stocks with Huge Upside Potential.
There is more greed than fear, going by the blockbuster gains in the equity markets following the US-Iran war-triggered correction in March. Goldman Sachs CEO David Solomon insists there is more liquidity in the system, likely to continue fueling gains despite valuations getting out of hand.
“Greed can turn into fear very quickly, but that doesn’t mean it will,” Solomon said. “Exuberance can go on for big periods of time. There’s a good chance that we’re earlier in the cycle than later.”
The sentiment comes from strategists at Goldman Sachs lifting the S&P 500 target to 8,000 while projecting a 6% return. The strategists expect the valuation multiple for US stocks to remain flat at 21 times. They also expect modest declines in treasury yields offset by slowing growth and geopolitical uncertainty.
The investment boom in artificial intelligence, with capital expenditure expected to rise 83% to $754 billion, is one factor that should support the upward momentum.
“We believe there is upside risk to consensus capex estimates in 2027. Analysts have been too conservative during each of the past three years,” said Ben Snider, chief US equity strategist in Goldman Sachs Research.
Lee Ainslie’s Maverick Capital is one hedge fund poised to capitalize on any gains in the equity market. Backed by a long-standing, research-driven, fundamental long/short investing approach, the hedge fund enjoys exposure to technology leaders, financial services, and health innovators with significant upside potential.
Likewise, Lee Ainslie’s portfolio continues to reflect a growth-at-a-reasonable-price philosophy, focusing on investments positioned for long-term secular trends.
With that in mind, let’s take a look at billionaire Lee Ainslie’s 10 stocks with huge upside potential.
Our Methodology
For this list, we began by scanning Maverick Capital’s 13F portfolio as of the end of Q1 2026. Next, we identified the hedge fund’s stock holdings with more than 40% upside potential. We ended up with more than a dozen stocks in the initial pool and applied additional filters to pick out the best. We looked for companies popular with other hedge funds in Q1 2026 and that have recently had developments likely to influence investor sentiment. Finally, we ranked the stocks in ascending order based on the value of Maverick Capital’s equity stake in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Billionaire Lee Ainslie’s Stocks with Huge Upside Potential
10. NRG Energy Inc (NYSE:NRG)
Maverick Capital Equity Stake: $1.54 Million
Number of Hedge Fund Holders: 76
Stock Upside Potential: 58.79%
NRG Energy Inc (NYSE:NRG) is one of billionaire Lee Ainslie’s stocks with huge upside potential. Analysts believe NRG Energy shares could soar more than 58% over the next 12 months from the current level.
On May 21, Morgan Stanley raised its price target on NRG Energy Inc (NYSE:NRG) shares to $162 from $159 while keeping an Equal Weight rating on the stock. This action was part of the firm updating its price targets for utility stocks. In taking this step, Morgan Stanley noted that utilities underperformed the S&P’s returns for the month.
For NRG Energy, the price target upgrade comes as the management continues to execute a share repurchase program intended to return $1 billion to shareholders in 2026. The company also plans to distribute $407 million in dividends this year. NRG Energy’s total liquidity stood at $3.3 billion at the end of Q1 2026.
Commenting on NRG Energy’s outlook on May 6, CEO Robert Gaudette said demand for their product continues to grow. He added that the company is well-placed with the right people, assets, and platform to capitalize on the opportunity. The executive also noted that they are seeing momentum across the business and that they are well-positioned heading into the summer.
NRG Energy Inc (NYSE:NRG) generates and supplies electricity to millions of customers across North America. It generates electricity from plants powered by natural gas, coal, nuclear, wind, and solar. The company supplies electricity to residential and commercial customers in over 20 US states and parts of Canada.
9. Fractyl Health Inc (NASDAQ:GUTS)
Maverick Capital Equity Stake: $1.82 Million
Number of Hedge Fund Holders: 23
Stock Upside Potential: 532.43%
Fractyl Health Inc (NASDAQ:GUTS) is one of billionaire Lee Ainslie’s stocks with huge upside potential. The stock has gained roughly 18% over the past month, and analysts see it surging 530% over the next 12 months.
On May 11, Fractyl Health Inc (NASDAQ:GUTS) announced that it has been cleared to go ahead with the planned Phase 1/2 trial of RJVA-001 in the Netherlands. RJVA-001 is a gene therapy candidate for treating type 2 diabetes, and it’s one of Fractyl Health’s leading programs.
Fractyl Health said the trial approval makes RJVA-001 the first gene therapy candidate for type 2 diabetes to enter clinical development. This study will assess the therapy’s safety and tolerability as the primary endpoints. Secondary endpoints include assessing the therapy’s preliminary efficacy.
Fractyl Health expects to dose the first patient with RJVA-001 and report preliminary data from the study in the second half of 2026. The company closed Q1 2026 with roughly $63.2 million in cash and cash equivalents. The management believes this cash position is adequate to fund operations into early 2027.
According to Fractyl Health, RJVA-001 could transform type 2 diabetes treatment. It’s designed to be a one-time treatment, as opposed to therapies that require chronic, high-dose systemic exposure.
Massachusetts-based Fractyl Health Inc (NASDAQ:GUTS) is a therapeutics company developing treatments for metabolic diseases. Its therapies are designed to address the root causes of obesity and type 2 diabetes. The company’s goal is to help prevent and reverse metabolic diseases.
8. Coty Inc (NYSE:COTY)
Maverick Capital Equity Stake: $2.54 Million
Number of Hedge Fund Holders: 32
Stock Upside Potential: 58.22%
Coty Inc (NYSE:COTY) is one of billionaire Lee Ainslie’s stocks with huge upside potential. Street analysts see the stock popping up more than 58% over the next 12 months.
On May 20, Coty Inc (NYSE:COTY) announced the relaunch of the Marc Jacobs Beauty cosmetics line, describing it as one of the most-requested luxury comebacks. The company said the return of this prestige brand has been years in the making, and it noted that this could be one of the defining launches in 2026.
The Marc Jacobs Beauty collection includes eye, complexion, and lip products. The list features eyeliner, eyeshadow, blush, lipstick, mascara, bronzer, and highlighter. This collection is priced between $26 and $42 in the US, and between £22 to £35 in the UK.
Coty initially rolled out the brand on digital sales channels, including MarcJacobs.com, Sephora.com, Selfridges.com, and the Sephora app. The digital rollouts began in the final days of May. Coty said physical store launches would begin in June, starting with travel retail at the JFK and Palma de Mallorca airports. The brand is scheduled to launch at Sephora stores in the U.S., Canada, the U.K., and Australia starting in September.
Coty Inc (NYSE:COTY) is a multinational beauty company. It develops, manufactures, and sells fragrances, cosmetics, skin care, and body care products. The company operates a portfolio of around 40 brands and sells its products across more than 120 countries.
7. Turning Point Brands Inc (NYSE:TPB)
Maverick Capital Equity Stake: $3.37 Million
Number of Hedge Fund Holders: 41
Stock Upside Potential: 50.68%
Turning Point Brands Inc (NYSE:TPB) is one of billionaire Lee Ainslie’s stocks with huge upside potential. Analysts expect Turning Point Brands shares to soar more than 50% over the next 12 months.
On May 8, Needham upgraded Turning Point Brands Inc (NYSE:TPB) stock rating to a Buy from a Hold with a price target of $125 on the shares. For this action, Needham cited Turning Point’s solid Q1 2026 results and noted that the company continues to outperform in the nicotine pouches segment.
As the Modern Oral product distribution expands, the firm sees limited downside to Turning Point’s profitability. Moreover, the firm sees the Modern Oral product being a beat and raise story that will support multiple expansions and renewed momentum.
Turning Point released its Q1 results on May 7, reporting a 16.8% jump in consolidated net sales to $124.3 million. Modern Oral net sales soared 133% to $52 million and accounted for 42% of the total company’s net sales, compared to 21% of total net sales in Q1 2025. Looking ahead, the company raised full-year 2026 Modern Oral net sales guidance to $210-$225 million, from $180- $190 million.
According to Turning Point CEO Graham Purdy, the company is investing in its brands, consumer outreach, and commercial capabilities to take advantage of the significant opportunity ahead.
Turning Point Brands Inc (NYSE:TPB) manufactures and distributes alternative smoking products, including accessories and consumables. Under the Zig-Zag brand, the company sells premium rolling papers, pre-rolled cones, cigar wraps, and related smoking accessories. Its Stoker’s brand includes smokeless tobacco products such as moist snuff and loose-leaf chewing tobacco.
6. Invivyd Inc (NASDAQ:IVVD)
Maverick Capital Equity Stake: $24.66 Million
Number of Hedge Fund Holders: 42
Stock Upside Potential: 754.70%
Invivyd Inc (NASDAQ:IVVD) is one of billionaire Lee Ainslie’s stocks with huge upside potential. The stock has gained roughly 30% over the past year, and analysts see more than 750% upside potential over the next 12 months.
On June 1, Invivyd Inc (NASDAQ:IVVD) announced that it has completed enrolling participants in the DECLARATION Phase 3 clinical trial of its Covid-19 drug candidate known as VYD2311.
The DECLARATION trial is intended to generate data to support a Biologics License Application for VYD2311. Invivyd has enrolled around 2,400 participants into the study. These include adolescents and adults. This study will evaluate the safety and efficacy of VYD2311 against placebo.
The company noted that the rapid recruitment into the DECLARATION study indicates the appeal of its antibody technology as a protection against Covid. The trial has two dosing arms. One arm will assess a single-dose regiment, and the other arm will evaluate a monthly-dose regiment. Topline data from this study is expected in Q3 2026.
Invivyd developed VYD2311 using its proprietary antibody therapy platform. Moreover, this drug candidate uses the same antibody backbone as pemivibart, which was granted emergency use authorization by the FDA for certain patients with Covid-19.
Invivyd Inc (NASDAQ:IVVD) is a biopharmaceutical company focused on developing antibody therapies to prevent and treat serious viral infectious diseases, including Covid-19. The company says its proprietary platform is designed to help create the best-in-class antibodies.
While we acknowledge the potential of IVVD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IVVD and that has 100x upside potential, check out our report about the cheapest AI stock.
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