Billionaire Mason Hawkins’ 10 Small-Cap Stocks with Huge Upside Potential

5. Oscar Health, Inc. (NYSE:OSCR)

Market Capitalization: $3.06 billion

Number of Hedge Fund Holders: 43

Southeastern Asset Management Stake: $42,081,769

Analyst Upside Potential: 51.27%

Oscar Health, Inc. (NYSE:OSCR) is a health insurance company that leverages a proprietary full-stack technology platform to deliver and manage insurance. It operates through key activities and services including health insurance plans, +Oscar (Technology platform), and member services. It operates in multiple states across the United States.

During fiscal year 2024, Oscar Health, Inc. (NYSE:OSCR) achieved record ACA marketplace enrollment of 37% membership as compared to the market average of 13%. This took the total number of members to 1.8 million as of February 2025. The year was also significant because it marked the first year of annual profit. The net income of the company came in at $25.4M net income, against a $270 million loss last year.

Looking ahead, Oscar Health, Inc. (NYSE:OSCR) anticipates earnings from operations of around $225 million to $275 million. Management believes that its technology platform will enable further growth in memberships. It is one of the billionaire Mason Hawkins’ 10 small-cap stocks with huge upside potential.

Longleaf Partners Small-Cap Fund stated the following regarding Oscar Health, Inc. (NYSE:OSCR) in its Q4 2024 investor letter:

“Oscar Health, Inc. (NYSE:OSCR) – Health insurance and software company Oscar was a top detractor for the quarter while remaining a top contributor for the year. The company delivered another strong quarter operationally, achieving over 60% year-over-year revenue and membership growth, while advancing toward its publicly stated goal of 5% operating income margins. Despite the operational progress, the Trump presidential win weighed on the stock price in the quarter due to added uncertainty around the future of the enhanced ACA subsidies set to expire at the end of 2025 and broader implications for the ACA itself. Oscar still has underappreciated non-earning assets in various regions at different stages of ramp-up, transitioning from investment mode in some areas to higher-margin operations in others. We view this as a long-term positive, highlighting the embedded long-term growth potential at Oscar. While election-related news contributed to stock volatility in the second half of the year, we capitalized on the volatility by strategically trimming and adding to our position. It was powerful to see both co-founder Josh Kushner and CEO Mark Bertolini (via his foundation) each purchase more than $10 million worth of stock in the wake of the election selloff.”