Louis Moore Bacon is the founder, Chairman, and principal investment manager of Moore Capital Management, a global investment management firm that provides services to institutional and high-net-worth clients through diversified hedge funds and specialized funds that focus on global fixed-income and emerging markets. It was established in March 1989 and is headquartered in New York City with offices in London and Hong Kong. He holds an MBA in Finance from Columbia Business School and a BA in American Literature from Middlebury College. Bacon’s investment philosophy is based on risk management and capital preservation principles. His trading strategies are focused on macroeconomic trends and fundamental analysis of the markets.
Bacon emphasizes diversification, which allows him to invest across different geographies and asset classes. He is known for his contrarian investment style and takes positions against prevailing market sentiment. Moore Capital Management is a hedge fund with 4 clients and discretionary assets under management (AUM) of $33.20 billion, as reported in the firm’s Form ADV dated 19 November 2024. Their last reported 13F filing for Q4 2024 included $8.70 billion in managed 13F securities and a top 10 holdings concentration of 25.53%. He believes that there are opportunities to profit from mispricing that come with volatility or fear. Louis Moore Bacon is also the Founder and Co-Chair of The Moore Charitable Foundation, which was established in 1992 to support conservation-focused nonprofits dedicated to preserving land, water, and wildlife habitats. Bacon has received several awards in this regard, including the Theodore Roosevelt Conservation Partnership (TRCP) Lifetime Conservation Achievement Award and the Audubon Medal.
That being said, we’re here with a list of billionaire Louis Bacon’s 10 stock picks with huge upside potential.
A business analyst reviewing a portfolio of stocks and bonds in the current market capitalization.
Our Methodology
To compile the list of billionaire Louis Bacon’s 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Moore Global Investments from Insider Monkey. From these filings, we checked each stock’s upside potential from CNN and ranked the stocks in ascending order of this upside potential. We have also added Moore Global Investments’ stake in each company and the hedge fund sentiment around each stock.
Note: All data was sourced on May 2.
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 Louis Bacon’s 10 Stock Picks with Huge Upside Potential
10. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)
Moore Global Investments’ Stake: $26.23 million
Number of Hedge Fund Holders: 186
Average Upside Potential as of May 2: 22.29%
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is a tech company that manufactures, packages, tests, and sells integrated circuits and other semiconductor devices globally. It provides various wafer fabrication processes. It also offers customer & engineering support services, invests in tech start-up companies, and provides investment services.
The HPC segment made 59% of the company’s total revenue in Q1 2025, which totaled $25.78 billion and improved by 41.40% year-over-year. This revenue itself improved by 7% sequentially due to the demand for AI-related applications. TSMC is also at the forefront of advanced chip manufacturing. As of Q1, 3nm chips made up 22% of TSMC’s total wafer revenue, while 5nm and 7nm accounted for 36% and 15%, respectively. Altogether, advanced technologies (7nm and below) made 73% of the total wafer revenue.
To support AI and HPC growth, TSMC is investing in advanced packaging technologies, particularly CoWoS, intending to double its CoWoS capacity in 2025. Despite projecting a mid-40% revenue CAGR from AI accelerators for the 5 years starting from 2024, Barclays analyst Simon Coles lowered the price target on the stock to $215 from $255 on April 21 while maintaining an Overweight rating. The company also plans to launch 2nm and 1.6nm chips, which would further strengthen its competitive edge.
The company’s results and guidance showcased strong AI chip demand, which is why Sands Capital Technology Innovators Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) third-quarter 2024 results and guidance showcased strong continued demand for artificial intelligence (AI) chips. Revenue increased by 29 percent, and earnings saw a 54 percent rise year-over-year. Gross margins were at their highest since 2022, bolstered by price hikes and record utilization at both the 3 nanometer (nm) and 5nm nodes. TSMC’s full-year revenue outlook was revised upward from 25 percent to 30 percent growth. The company also anticipates higher capital expenditure in 2025, a leading indicator for revenue.
Meanwhile, TSMC’s competitive position within the leading-edge chip fabrication industry has improved. The company noted that demand for its next-generation 2nm (N2) node is considerably higher than for its predecessor, N3. Additionally, TSMC has more capacity for N2 than N3. This situation contrasts with Intel and Samsung, which both recently disclosed struggles in ramping up their leading-edge nodes. Together, Intel and Samsung account for approximately $25 billion of foundry revenue, which could potentially migrate to TSMC over time…” (Click here to read the full text)
9. Fluor Corp. (NYSE:FLR)
Moore Global Investments’ Stake: $40.29 million
Number of Hedge Fund Holders: 48
Average Upside Potential as of May 2: 24.07%
Fluor Corporation (NYSE:FLR) delivers engineering, procurement, and construction (EPC) solutions across diverse sectors. These include urban infrastructure, energy (both traditional and renewable), and government projects. Its expertise spans complex project management, fabrication, and technical consulting, with a focus on delivering large-scale and mission-critical infrastructure.
In Q1 2025, the company’s Urban Solutions segment reported a profit of $70 million and experienced a ramp-up in execution activities due to new awards secured over the past 18 months. New awards for Urban Solutions in Q1 were strong at $5.3 billion, compared to $4.9 billion year-over-year. The ending backlog for this segment is at $20.2 billion, which is 70% of Fluor’s total backlog.
Within Urban Solutions, the Advanced Technology & Life Sciences (ATLS) business line is particularly strong, which is further highlighted by a recent award from a leading pharmaceutical maker for EPCM services on a multibillion-dollar investment. Fluor Corporation (NYSE:FLR) has a long-standing history in this market, having worked on 1,500 life sciences projects in 30 countries over the past 50 years.
ClearBridge Small Cap Growth Strategy highlighted the company’s potential to benefit from large-scale projects in growing markets due to its improved contract structure. It stated the following regarding Fluor Corporation (NYSE:FLR) in its Q4 2024 investor letter:
2024 proved a particularly active year for new idea generation: we added 23 new investments while exiting 29 due to a variety of considerations, including acquisitions, market capitalization constraints, and our assessment of forward return potential. While many of the new investments we made during the year are of relatively modest size, we will continue to build these positions over time provided company execution and end market prospects remain intact. In the fourth quarter we initiated five new investments: Oscar Health, TG Therapeutics, Clearwater Analytics, Fluor Corporation (NYSE:FLR) and Modine.
Fluor is one of the largest engineering, procurement and construction firms, with global scale supporting megaprojects across various end markets. With an improved contract structure mix and balance sheet, the company is poised to benefit from an array of high-priority investment projects in markets such as data centers, GLP-1 manufacturing, mining and nuclear energy.
