Billionaire Louis Bacon’s High Upside Potential Picks Include Citigroup Inc (C)

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Bacon and his team owned 1 million shares of Liberty Global PLC (NASDAQ:LBTYA) at the end of March. The company recently completed its takeover of Virgin Media, and apparently both markets and the sell-side expect this to contribute to high earnings growth over the next several years. The stock looks a bit pricy to us, and we’d want to wait to see how well the combined company performs for a quarter or two. Tiger Global Management, a Tiger Cub hedge fund which counts billionaire Chase Coleman among its managers, had 4.3 million shares of Liberty Global PLC (NASDAQ:LBTYA) in its portfolio (find Tiger Global’s favorite stocks).

Moore Global initiated a position of 825,000 shares in contract offshore driller Transocean LTD (NYSE:RIG) between January and March. Billionaire activist Carl Icahn has taken a relatively large stake in Transocean LTD (NYSE:RIG)- over 5% of the $17 billion market cap company- and has been pushing for more cash to be returned to shareholders. See Icahn’s stock picks. Currently Transocean LTD (NYSE:RIG) is targeting sufficient quarterly dividend payments for a 4.5% yield, and analysts consider the stock a good value with its forward earnings multiple being only 8. Revenue rose 4% in the first quarter of 2013 versus a year earlier.

Hertz Global Holdings, Inc. (NYSE:HTZ) rounds out our top five list, with the 13F showing a position of 1.5 million shares at the end of Q1 of this year. Hertz Global Holdings, Inc. (NYSE:HTZ) rents construction and industrial equipment as well as rental cars, and with the former part of this business being highly dependent on the overall economy the stock’s beta is 2.8. Revenue grew over 20% in its most recent quarter compared to the same period in the previous year, and Hertz Global Holdings, Inc. (NYSE:HTZ) is currently trading at 10 times forward earnings estimates. Highbridge Capital Management, managed by billionaire Glenn Dubin, owned almost 9 million shares according to that fund’s own 13F.

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

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