In this article, we will look at Billionaire Mason Hawkins’ 10 Mid-Cap Stocks with Huge Upside Potential.
Billionaire Mason Hawkins is the founder and chairperson of Southeastern Asset Management. We recently covered Billionaire Mason Hawkins’ 10 Small-Cap Stocks with Huge Upside Potential, discussing his value investment strategy. Here’s a piece from the article:
“Value investment is an investment strategy that employs buying stocks of well-managed and quality companies at prices significantly below their intrinsic value. The core of Hawkins’ strategy is to purchase equities when their market price is no more than 60% of the firm’s appraisal of their intrinsic value. Value investors believe that the market overreacts to economic news, which leads to movement in stock prices, however, this news does not affect the long-term fundamentals of a company. Therefore, investors like Mason Hawkins do not follow the herd and use financial research and analysis to find quality companies. Value investors are also known for holding companies for the long term, but also actively ferret out stock that the market is underestimating.
Hawkins’ disciplined and research-based investment strategy has earned him widespread recognition. He achieved Investor’s Lifetime Achievement Award in 2005 and was also named Domestic Equity Fund Manager of the Year by Morningstar in 2006.”
Mason Hawkins is one of the key figures for value investment literature. He has been a keynote speaker for the Value Investment Conference at the Ben Graham Centre for Value Investing, where he discussed how a company has to be fit both qualitatively and quantitatively. Hawkins noted that Benjamin Graham, who is known as the father of value investing, talked about all great investments being a qualitative and quantitative fit, the quantitative nature being judged by the Price to Value ratio, whereas qualitative health being judged by the competitiveness of the business and the quality of your partner. He further explained that investors should look at businesses that are likely to get better with time, not vice versa. Moreover, on the management side, investors should look at the partners that are running the company and their ability to generate free cash flow and reinvest it very intelligently.
Hawkins also has a famous quote related to Graham’s strategy, which has been cited in a renowned book, The Art of Value Investing: How the World’s Best Investors Beat the Market by John Heins and Whitney Tilson.
“Our view is simply that superior long‐term investment performance can be achieved when financially strong, competitively entrenched, well‐managed companies are bought at prices significantly below their business value and sold when they approach that corporate worth. The quantitative piece of that is that we only want to buy when we can pay less than 60 percent of a conservative appraisal of a company’s value, based on the present value of future free cash flows, current liquidation value and/or comparable sales.”
This qualitative and quantitative value investment strategy is reflected in Southeastern Asset Management’s strategies. The fund has a concentrated stock portfolio of only 40 to 50 companies. Let’s now take a look at stocks with huge upside potential from Billionaire Mason Hawkins’ portfolio.
Our Methodology
To compile the list of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential, we sifted through 13F filings of Southeastern Asset Management, from Insider Monkey. From these filings, we checked each stock’s upside potential from CNN and ranked the stocks in ascending order of the upside potential. We have also added the stake Southeastern Asset Management holds in each company and the hedge fund sentiment around each stock. Please note that the data was recorded on May 4, 2025. Also note that for this article, we have defined mid-cap companies as those with a market capitalization between $10 billion to $55 billion.
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 Mason Hawkins’ 10 Mid-Cap Stocks with Huge Upside Potential
10. Albertsons Companies, Inc. (NYSE:ACI)
Market Capitalization: $12.63 billion
Number of Hedge Fund Holders: 70
Southeastern Asset Management Stake: $113,258,361
Analyst Upside Potential: 4.88%
Albertsons Companies, Inc. (NYSE:ACI) is one of the largest food and drug retailers in the United States. The company operates a network of supermarkets and drug stores in over 2,000 locations. Its core business activities include Retail Operations, Private Label Brands, and Digital and Omnichannel Services.
The company has been focused on growing its digital platforms. During the fiscal fourth quarter of 2024, the e-commerce sales grew 24% year-over-year and now account for over 8% of grocery revenue. In addition, its loyalty program also showed progress during the quarter. The Albertsons for U program grew 15% year-over-year, reaching more than 45 million members. Management noted that app simplifications helped increase engagement, with 20% of engaged households opting for immediate cash-off rewards.
In terms of finances, Albertsons Companies, Inc. (NYSE:ACI) grew its identical sales by 2% for fiscal 2024, with net income at $959 million. Looking ahead, management projects growing its identical sales by 1.5% to 2.5% during fiscal 2025. On May 2, Kenneth Goldman from J.P. Morgan maintained a Buy rating on the stock with a price target of $31. Albertsons Companies, Inc. (NYSE:ACI) is one of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential.
Longleaf Partners Fund stated the following regarding Albertsons Companies, Inc. (NYSE:ACI) in its Q1 2025 investor letter:
“Albertsons Companies, Inc. (NYSE:ACI) – US grocery retailer Albertsons was a contributor for the quarter. Albertsons was a new purchase in 2024, after we had followed the company and its predecessors for years. In an otherwise turbulent quarter, Albertsons stands out as a stable business that remains undervalued because it had fallen off the radar during a protracted deal process with Kroger that ultimately failed. The company should grow at a moderate pace and has plenty of financial firepower to repurchase shares, all while it has multiple strategic options (such as unlocking its real estate value and/or selling non-core markets) to realize value per share.”
9. Cardinal Health, Inc. (NYSE:CAH)
Market Capitalization: $36.12 billion
Number of Hedge Fund Holders: 63
Southeastern Asset Management Stake: $2,079,305
Analyst Upside Potential: 9.34%
Cardinal Health, Inc. (NYSE:CAH) is an international healthcare services and product company based in Dublin, Ohio. Its core business segments include Pharmaceutical and Specialty Solutions and Global Medical Products and Distribution. The company acts as a critical link in the healthcare industry by offering pharmaceutical and medical product distribution, along with a suite of consulting and operational services.
On May 4, Erin Wright from Morgan Stanley maintained a Buy rating on the stock with a price target of $166. During the fiscal third quarter 2025 earnings call, management noted that they generate 99% of their enterprise revenue from the United States. Moreover, approximately 95% of the company’s profit comes from four out of its five business units. Cardinal Health, Inc. (NYSE:CAH) has heavily invested in growing its footprint in the United States by making acquisitions. On April 1, the company announced the completion of the acquisition of the Advanced Diabetes Supply Group (ADSG) for approximately $1.1 billion in cash.
During the third quarter, Cardinal Health, Inc. (NYSE:CAH) reported revenue of $54.9 billion, flat year-over-year. However, the operating earnings grew 98% during the same time to reach $730 million, driven by growth across all business segments. The company ranks as one of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential.
8. CNH Industrial N.V. (NYSE:CNH)
Market Capitalization: $15.48 billion
Number of Hedge Fund Holders: 42
Southeastern Asset Management Stake: $53,797,355
Analyst Upside Potential: 9.68%
CNH Industrial N.V. (NYSE:CNH) is an international equipment and services company that specializes in the production and sales of agricultural and construction equipment. The company operates through three main business segments, including Agriculture, Construction, and Financial Services.
Financially speaking, CNH Industrial N.V. (NYSE:CNH) experienced a significant downturn in Q1 2025 due to market softness. Its consolidated revenue fell by 21% year-over-year, whereas the net income dropped by 64% during the same time. Despite these challenges, the company remains focused on operational excellence, cost-saving initiatives, and technological innovation.
The company, on April 3, reported that it is leveraging cutting-edge technology to advance its training programs. These technologies include simulators, the metaverse, and augmented reality to upskill its employees, customers, and partners. This innovation is particularly focused on Latin America, where these tools help users fully leverage the capabilities of CNH Industrial’s N.V. (NYSE:CNH) machines. It is one of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential.
Greenlight Capital stated the following regarding CNH Industrial N.V. (NYSE:CNH) in its Q4 2024 investor letter:
“We established a new medium-sized position in CNH Industrial N.V. (NYSE:CNH) and a small position in Centene (CNC). CNH is a leading manufacturer of tractors, combines and other agricultural equipment. The farm equipment industry is going through a downcycle led by weak commodity prices and we estimate CNH will ultimately generate trough earnings close to $1 per share. We acquired our position at an average price of $10.53 per share, or less than 11x these expected bottom-of-cycle results. Investor sentiment is extremely weak on the view that the bottom is several years away.
We are optimistic that this current downturn will be shorter and shallower than the prior one experienced about a decade ago. First, the industry experienced strikes and supply chain issues over the last few years, tempering peak sales and inventory levels. Second, CNH and its peers took the corrective action of underproducing to end demand and destocking inventories earlier and more aggressively this time around. As a result, we expect CNH’s sales to return to growth sometime in the coming year simply by producing to end demand, even if farmer spending remains weak. In the meantime, CNH pays a 3% dividend and management has committed to returning the remaining free cash flow through buybacks. We estimate that management will be able to repurchase 5-6% of its stock annually. CNH ended 2024 at $11.33.”
7. Fidelity National Information Services, Inc. (NYSE:FIS)
Market Capitalization: $41.47 billion
Number of Hedge Fund Holders: 53
Southeastern Asset Management Stake: $117,161,650
Analyst Upside Potential: 10.32%
Fidelity National Information Services, Inc. (NYSE:FIS) is an international financial technology company that provides a range of services to financial institutions, businesses, merchants, and developers. It operates through three segments, namely Banking, Capital Market Solutions, and Merchant Solutions.
On April 17, the company announced two major transactions to reshape its business and strengthen its position as a global fintech leader. Firstly, Fidelity National Information Services, Inc. (NYSE:FIS) announced acquiring a 100% stake in Global Payments’ Issuer Solutions business, and secondly, it announced the sale of its Worldpay stake to fund the acquisition. Management noted that it will integrate Issuer Solutions’ credit processing with its own debit, loyalty, and network services. The announcement was taken positively by analysts as the stock was upgraded to Outperform by Oppenheimer with a price target of $94. Fidelity National Information Services, Inc. (NYSE:FIS) is one of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential.
Longleaf Partners Fund stated the following regarding Fidelity National Information Services, Inc. (NYSE:FIS) in its Q4 2024 investor letter:
“Fidelity National Information Services, Inc. (NYSE:FIS) – Technology solutions provider for financial institutions FIS was a top contributor for the year. We first started buying this company in 2023 when its bank customers were going through stock market turmoil following the failure of Silicon Valley Bank. As we have written previously, we have seen how resilient the financial technology industry tends to be, even through crises, and FIS has demonstrated this once again with the company’s core bank software business reporting solid growth this year. CEO Stephanie Ferris is proving to be a great partner since she was elevated to the role with FIS making notable strides this year. FIS monetized a non-core business this year at an attractive valuation and used the proceeds to repurchase 10% of its outstanding shares. These actions led to strong double-digit value per share growth in 2024. FIS is a stable company that is on offense yet still trading at a reasonable multiple of FCF – an increasingly rare attribute in today’s market.”
6. Formula One Group (NASDAQ:FWONK)
Market Capitalization: $22.57 billion
Number of Hedge Fund Holders: 50
Southeastern Asset Management Stake: $10,843,252
Analyst Upside Potential: 11.60%
Formula One Group (NASDAQ:FWONK) operates as a media holding company with interests in a diverse set of portfolio of media, sports, and entertainment businesses. The Formula One group is a global motorsports business holding exclusive commercial rights to the Formula One World Championship.
Formula One Group (NASDAQ:FWONK) reported strong financial performance in the fiscal fourth quarter of 2024. Its revenue increased 13.4% year-over-year to reach $3.7 billion. The group contributed significantly with its adjusted OIBDA (Operating Income) rising 13% year-over-year, driven by a 9% increase in fan attendance.
Management noted that the Formula One Group (NASDAQ:FWONK) renewed and extended race promotion agreements with major Grand Prix hosts, including Belgium, the Netherlands, China, Italy, and Monaco. This helped the company secure its market presence in key events. The company is also focused on strategic expansion, including the planned integration of MotoGP into its portfolio, which is expected to further diversify its motorsports holdings. It is one of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential.
Diamond Hill Mid Cap Strategy stated the following regarding Formula One Group (NASDAQ:FWONK) in its Q4 2024 investor letter:
“Other top contributors in Q4 included Alaska Air, Webster Financial and Formula One Group (NASDAQ:FWONK). Formula One reached several new and expanded sponsorship agreements during the quarter which materially enhance its 2025 growth profile. Liberty Media also announced Liberty Formula One will be converted from a tracking stock — which can carry some additional risks — into a regular stock following its split from Liberty Live Group.”
5. XPO, Inc. (NYSE:XPO)
Market Capitalization: $12.93 billion
Number of Hedge Fund Holders: 45
Southeastern Asset Management Stake: $2,095,777
Analyst Upside Potential: 13.91%
XPO, Inc. (NYSE:XPO) is an international provider of freight transportation and logistics services. The company focuses on moving goods with a special focus on less-than-truckload shipping. Its key business segments include North America and European Transportation. Moreover, the company also provides additional services such as contract logistics, technology-driven solutions, and other delivery-related specialized solutions.
XPO, Inc. (NYSE:XPO) had a difficult first quarter for fiscal 2025, due to a softer market. The company reported revenue of $1.95 billion, reflecting a 3.2% decrease. The adjusted EBITDA also took a hit and dropped 3.5% from the prior year. However, on the bright side, the operating income improved by 9.4%, showing operational excellence despite tough conditions.
Management noted that they achieved a record-low damage claims of 0.3% and marked its 12th consecutive quarter of year-over-year improvement in on-time performance. Moreover, the company also expanded its network by opening new service centers, which reduced freight handling and transit miles, improving both customer outcomes and cost efficiency. Its strategic investment in proprietary AI technology and other services is expected to contribute to long-term growth. XPO, Inc. (NYSE:XPO) is one of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential.
4. Hyatt Hotels Corporation (NYSE:H)
Market Capitalization: $11.74 billion
Number of Hedge Fund Holders: 35
Southeastern Asset Management Stake: $61,942,424
Analyst Upside Potential: 15.47%
Hyatt Hotels Corporation (NYSE:H) is an international hospitality company that owns and manages franchises of a diverse hotel portfolio. Its portfolio is segregated into five main categories, including the Luxury portfolio, Lifestyle, Inclusive collection, Classics, and Essentials. It operates around 1,460 hotels and resorts in 79 countries.
Hyatt Hotels Corporation (NYSE:H) employs an asset-light approach, which relies on managing and franchising hotels rather than owning them. This way, the company generates income through the fees and also remains away from economic downturns. During the fiscal first quarter of 2025, the company reported a strong revenue per available room, which grew 5.7% year-over-year. This was also boosted by a 10.5% growth in net rooms. The company had more than 138,000 rooms franchised during the quarter, generating $307 million in gross fees and reflecting a 16.9% growth year-over-year.
Looking ahead, Hyatt Hotels Corporation (NYSE:H) anticipates RevPAR growth to be around 1% to 3%, with net room growth at 6% to 7%. The company ranks as one of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential.
Nightview Capital stated the following regarding Hyatt Hotels Corporation (NYSE:H) in its Q4 2024 investor letter:
“Travel and entertainment are transforming as consumers prioritize experiences over material goods. This isn’t a return to pre pandemic norms—it’s a reinvention of how we connect, explore, and enjoy life. Travelers seek uniqueness and personalization, while entertainment blends digital and physical realms to create new experiences. The companies leading this evolution are redefining tradition through innovation, delivering unforgettable moments to a new generation. These businesses are not just adapting—they’re shaping the future of the experience economy.
Hyatt Hotels Corporation (NYSE:H): Core Opportunity: Hyatt’s transition to an asset-light model makes it well positioned for flexibility and stable, long-term growth. By selling properties at premium multiples and reinvesting in brand acquisitions, Hyatt is increasing its global footprint and strengthening its portfolio.
Competitive Advantage:
Loyalty Leadership: The World of Hyatt program has grown to 46 million members, a 22% YoY increase in 2024, with 30% more members per hotel than competitors.
Luxury Focus: Expanding soft brands allows Hyatt to maintain each hotel’s unique identity while benefiting from its extensive distribution network…” (Click here to read the full text)
3. Live Nation Entertainment, Inc. (NYSE:LYV)
Market Capitalization: $31.00 billion
Number of Hedge Fund Holders: 60
Southeastern Asset Management Stake: $1,824,137
Analyst Upside Potential: 23.35%
Live Nation Entertainment, Inc. (NYSE:LYV) is one of the largest live entertainment companies in the world. It operates through several business segments, including Concerts, Ticketing, and Sponsorships & Advertising. The company owns and operates numerous venues globally and invests in businesses related to live events.
The company recently released its Q1 2025 results, and the management is already citing 2025 to be a historic year for live music. The company recorded unprecedented growth in demand for live music concerts, driven by more artists touring around the world. The deferred revenue for Live Nation Entertainment, Inc. (NYSE:LYV) reached a record high of $5.4 billion for concerts and $270 million for Ticketmaster, representing a 24% and 13% increase, respectively.
The company has sold more than 95 million tickets for concerts so far in 2025, and stadium ticket sales are also up 80%. To meet this increasing demand, Live Nation Entertainment, Inc. (NYSE:LYV) is adding 20 major venues by 2026 with a capacity to accommodate 7 million more people. It is one of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential.
Baron Focused Growth Fund stated the following regarding Live Nation Entertainment, Inc. (NYSE:LYV) in its Q4 2024 investor letter:
“In the fourth quarter, we initiated a new position in Live Nation Entertainment, Inc. (NYSE:LYV), the leader in the management and operation of live concerts at their owned and third-party venues. They are a leader in concert venue operations, tour promotions, event ticketing through Ticketmaster, and the selling of sponsorships and advertising on their website and owned venues. Live Nation’s dominant share in ticketing and unmatched scale in concert promotions are key competitive advantages for them and give them the ability to monetize tours through ticketing, sponsorships, and hig-margin food and beverage at their owned and operated venues. Concerts and live events are a secular growing business that we believe should grow at a high single-digit rate for the company as the industry grows and they take share. We believe the company has an opportunity to significantly increase pricing or add new supply given the continued consumer preference for experiences over goods and the scarce nature of these events. The company has an incredible brand, and benefits in both upcycles with strong demand, and downcycles through an increase in supply as touring is a significant part of artists’ incomes. Despite concerns about slower consumer spending growth from peak levels, the company continues to grow at a double-digit rate in revenue despite consumer worries and is now leaning in with increased marketing to grow internationally where it remains underpenetrated. The company is still generating strong cash flow with a robust balance sheet to fund venue renovations where it expects to generate 20% returns on capital. John Malone of Liberty Media still owns 30% of the business with the CEO owning a significant portion of his net worth in the stock. We believe valuation remains attractive at current levels given the double-digit growth we expect in both revenue and earnings over the coming years.”
2. FedEx Corporation (NYSE:FDX)
Market Capitalization: $52.65 billion
Number of Hedge Fund Holders: 66
Southeastern Asset Management Stake: $121,067,272
Analyst Upside Potential: 25.61%
FedEx Corporation (NYSE:FDX) is an international leader in transportation, e-commerce, and related services. Its key business segments include FedEx Express, Ground, Freight, Logistics, Office, and Dataworks. The company has a vast network that allows it to service clients of all sizes.
In the fiscal third quarter of 2025, the company reported growing its revenue by 2% year-over-year; however, regardless of the growth, FedEx Corporation (NYSE:FDX) missed analyst expectations. This was mainly due to the expiration of a long-standing partnership with the US Postal Service for air cargo and a decline in shipment volume.
As a result, the company has revised its outlook downwards, now expecting flat or slightly lower revenue compared to the prior year, a downgrade from previous guidance. The company lowered its full-year earnings per share forecast for the third consecutive quarter, adjusting the range to $15.15 to $15.75 from $16.45 to $17.45, reflecting ongoing economic uncertainties and operational headwinds. However, analysts still anticipate significant upside for FedEx Corporation (NYSE:FDX), making it one of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential.
Longleaf Partners Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its Q1 2025 investor letter:
“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was a detractor for the quarter. The company faced macro headwinds, including tariff threats and ongoing demand weakness in the US. The company is growing market share and margins in its formerly challenged European business, and this was a driver for the Express business to report low-single-digit topline growth that turned into double-digit cash flow growth. The Freight business saw a decline like its peers who are also wrestling with weak industrial conditions. FedEx remains on track to separate into two entities: Express and Freight. This split should provide both companies with greater financial flexibility and accountability, allowing them to be run more efficiently. The market has consistently undervalued FedEx’s Freight operations, and a large discount to UPS is no longer warranted for the Express business. Tariff headwinds will be challenging to navigate, but we are glad the company is more on offense now than it has been in previous downturns.”
1. SharkNinja, Inc. (NYSE:SN)
Market Capitalization: $11.81 billion
Number of Hedge Fund Holders: 63
Southeastern Asset Management Stake: $42,681,845
Analyst Upside Potential: 39.49%
SharkNinja, Inc. (NYSE:SN) is a leading product design company. It operates through two main business segments, which are also its well-known brands, called Shark and Ninja. The company is known for its innovative design categories and has more than 31 household subcategories.
SharkNinja, Inc. (NYSE:SN) grew its net sales by 29.7% during the fiscal fourth quarter of 2024 to reach $1.79 billion. This was driven by growth across its main categories, which are Cooking and Beverage Appliances, Food Preparation Appliances, Cleaning Appliances, and Beauty and Home Environment Appliances. As a result of operational discipline, the gross profits also improved to reach $839.5 million, reflecting a 34.8% increase year-over-year.
Earlier on April 11, Alexander Perry from Bank of America Securities maintained a Buy rating on the stock with a price target of $120, stating that the company can gain market share by outperforming its competitors in growth. In addition, SharkNinja, Inc. (NYSE:SN) has also reduced the impact of tariffs by changing its production regions. It is one of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential.
Munro Global Growth Small & Mid Cap Fund stated the following regarding SharkNinja, Inc. (NYSE:SN) in its Q4 2024 investor letter:
“SharkNinja, Inc. (NYSE:SN) contributed -34bps to Fund performance for the quarter. SharkNinja, based in Needham Heights, Massachusetts, is a leading designer and marketer of electrical household appliances.
Originally known for its vacuums and long infomercial advertising across late hours of the night, SharkNinja has transformed itself into a leading household appliance company, continuing to move laterally into new areas of the home. Their proposition is simple, create innovative, best-in-class products at price points that attract all consumer demographics. SharkNinja is the epitome of positive customer perception, one of the six qualitative characteristic traits in Munro’s investment process.
Roughly 12 months ago, fresh off its IPO, SharkNinja remained an undiscovered story, trading at less than 15x earnings. The company had forecasted its revenue to grow by 7-9% in 2024. Fast forward to today, the company is really catching the eye of consumers on a global scale, which has led to a big acceleration in revenue, likely, in our view, to be over 30% for 2024 when the company reports its result in mid-February.…” (Click here to read the full text)
While we acknowledge the potential of SN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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