In this article, we will look at Billionaire Mason Hawkins’ 10 Small-Cap Stocks with Huge Upside Potential.
Mason Hawkins’s Value Investment Strategy
Mason Hawkins is a prominent American investor, known for being the founder and chairman of Southeastern Asset Management. Hawkins holds a Bachelor of Arts in Finance from the University of Florida and later did his MBA in Finance from the University of Georgia. Before founding Southeastern Asset Management, the billionaire gained experience as a Director of Research at Atlantic National Bank and First Tennessee Investment Management. There he developed his value investment strategy and has since been known for his discipline in value investing. His fund Southeastern Asset Management also holds the same reputation, which can be witnessed through his concentrated portfolio of around 40 to 50 stocks. Southeastern Asset Management services 47 clients at the moment, with $5,271,901,660 as assets under management as of March 2024.
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 a 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.
Under the current market condition, Hawkins’ value investment strategy has led Southeastern Asset Management’s attention towards small-cap stocks. While the small-cap stocks have largely underperformed the market when compared to their large-cap counterparts. However, according to Francis Gannon, Co-Chief Investment Officer at Royce Investment Partners, small-caps are attractively priced for long-term investment opportunities. Gannon’s investment advice aligns with Hawkins’s strategy, as he suggests investing in quality small-cap companies with strong fundamentals, low debt, established long-term earnings, and significant upside potential.
With that let’s take a look at the billionaire Mason Hawkins’ 10 small-cap stocks with huge upside potential.
Mason Hawkins of Southeastern Asset Management
Our Methodology
To compile the list of billionaire Mason Hawkins’ 10 small-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 April 28, 2025. Also note that for this article we have defined small-cap companies as those with a market capitalization between $1 billion to $10 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 Small-Cap Stocks with Huge Upside Potential
10. Madison Square Garden Sports Corp (NYSE:MSGS)
Market Capitalization: $4.61 billion
Number of Hedge Fund Holders: 42
Southeastern Asset Management Stake: $909,039
Analyst Upside Potential: 30.10%
Madison Square Garden Sports Corp (NYSE:MSGS) is a sports holding company that operates several high-profile sports franchises and related assets. The company operates through the ownership and operation of major sports teams, the development of league teams, and media and sponsorships. It also engages in Esports and operates performance centers.
During the second quarter of fiscal year 2025, Madison Square Garden Sports Corp (NYSE:MSGS) enhanced its sponsorships. It secured multi-year deals with Abu Dhabi’s Department of Culture and Tourism, making Experience Abu Dhabi the official patch partner of the Knicks. Knicks (NBA) is an important team owned by the company. The team made significant moves during the quarter including acquiring five-time NBA All-Star Karl-Anthony Towns.
Financially speaking the company generated a revenue of $357.8 million, reflecting a 9% increase year-over-year. Management noted that the growth was driven by robust demand for its teams along with all other revenue categories posting year-over-year growth. Madison Square Garden Sports Corp (NYSE:MSGS) is one of the billionaire Mason Hawkins’ 10 small-cap stocks with huge upside potential.
9. HF Sinclair Corporation (NYSE:DINO)
Market Capitalization: $5.75 billion
Number of Hedge Fund Holders: 41
Southeastern Asset Management Stake: $96,343,863
Analyst Upside Potential: 37.66%
HF Sinclair Corporation (NYSE:DINO) is an independent energy company based in Texas. The company deals in a wide range of petroleum-based and renewable products. It operates through five key business segments including Refining, Renewables, Marketing, Lubricants & Specialities, and Midstream.
On April 7, Analyst Joe Laetsch from Morgan Stanley maintained a Buy rating on the stock, while keeping the price target at $50. Laetsch highlighted a series of challenges and opportunities for HF Sinclair Corporation (NYSE:DINO). He noted that while the company is expected to face some moderation due to maintenance activities and less favorable crude differentials, however, the refining segment is anticipated to benefit from higher crude throughput. The analyst acknowledged that the Lubricants & Specialties of the company face lower sales volumes, however, he believes that the issue is manageable. Lastly, the Midstream segment is anticipated to post a stable performance thereby helping the company achieve its annual run-rate.
During fiscal 2024, HF Sinclair Corporation (NYSE:DINO) achieved record EBITDA for its Marketing and Midstream segments. The Marketing segment EBITDA grew 23% year-over-year to reach $75 million, whereas the Midstream segment grew 14% to reach $447 million. This enabled the company to return over $1 billion to shareholders through dividends during the year. HF Sinclair Corporation (NYSE:DINO) is one of the billionaire Mason Hawkins’ 10 small-cap stocks with huge upside potential.
Longleaf Partners Fund stated the following regarding HF Sinclair Corporation (NYSE:DINO) in its Q4 2024 investor letter:
“HF Sinclair Corporation (NYSE:DINO) – Energy infrastructure company HF Sinclair, which owns refining, midstream, specialty chemicals, marketing and renewable fuels assets, detracted in the quarter and for the year. The company owns unique assets that are protected from competition and has a great culture focused on value per share growth and realization. We had the opportunity to purchase this strong company in the quarter due to the recent refining downcycle and oil price volatility. We know HF Sinclair well having owned it before in 2015 in the Small-Cap Fund and having followed it since we first visited the company in 2009. As is typical in this industry, quarterly volatility in spread pricing can weigh on the share price in the short term, which is what happened this quarter. We were encouraged to see significant insider buying throughout the quarter as we were buying alongside them.”
8. Empire State Realty Trust, Inc. (NYSE:ESRT)
Market Capitalization: $1.19 billion
Number of Hedge Fund Holders: 19
Southeastern Asset Management Stake: $16,068,426
Analyst Upside Potential: 40.06%
Empire State Realty Trust, Inc. (NYSE:ESRT) is a real estate investment trust, which focuses on managing and operating a portfolio of properties in New York City. It has 10 office properties, out of which 9 are in midtown Manhattan. The company operates through two main business segments namely, Real Estate Segment and Observatory Segment.
On April 17, the company announced signing two lease renewal and expansion agreements. One with Carolina Herrera, Ltd. for 34K Square Feet at 501 Seventh Avenue and the other with Workday Inc. for the Empire State Building. Moreover, Empire State Realty Trust, Inc. (NYSE:ESRT) released its fiscal 2024 full-year results highlighting three consecutive years of growth in leased space. During the year, the company leased 1.3 million square feet, up from 982,000 square feet leased in 2023. Management noted that its Manhattan office area, which comprises the majority of its property portfolio, is 94% leased, reflecting the high demand for the company’s properties.
Considering the improved performance of the company. On March 25, Wolfe Research upgraded Empire State Realty Trust, Inc. (NYSE:ESRT) to Outperform from Peer Perform with a $10 price target. It is one of the billionaire Mason Hawkins’ 10 small-cap stocks with huge upside potential.
7. IAC Inc. (NASDAQ:IAC)
Market Capitalization: $2.85 billion
Number of Hedge Fund Holders:
Southeastern Asset Management Stake: $118,718,692
Analyst Upside Potential: 41.37%
IAC Inc. (NASDAQ:IAC) is another holding company that deals in digital and media business. The company operates through four main business segments including the Dotdash Meredith, Care.com, Search, and Emerging & Others segments. Its services range from digital content in various formats to healthcare staffing through Care.com and film production through IAC films.
On April 1st, the company completely spun off its entire ownership stake in Angi, making it an independent company. Management noted that IAC Inc. (NASDAQ:IAC) will now focus on its core businesses and look for new growth opportunities. The company had to bear a negative revenue growth quarter due to the underperformance of Angi business. During the fiscal fourth quarter of 2024, the company reported $989.3 million in revenue down 6% year-over-year. However, on the bright side, Dotdash Meredith remained positive with 10% growth year-over-year.
Longleaf Partners Fund mentioned IAC Inc. (NASDAQ:IAC) in its Q1 2025 investor letter, stating that the company was one of the top contributors driven by the spin-off of Angi. Here’s what the fund said about the company:
“IAC Inc. (NASDAQ:IAC) – Digital holding company IAC was another solid contributor for the quarter. In January, the company announced that former CEO Joey Levin would be shifting his focus to become Executive Chairman at IAC portfolio business Angi. Barry Diller is taking on a larger role at IAC while continuing to be its Chairman. Initially, the market reacted cautiously, but as the quarter went on, the potential benefits became clearer, especially in conjunction with the recently completed spin-off of Angi. During the quarter, we published our first Research Perspectives note that provides more details on our investment case for IAC.”
6. Atlanta Braves Holdings, Inc. (NASDAQ:BATRK)
Market Capitalization: $2.46 billion
Number of Hedge Fund Holders: 54
Southeastern Asset Management Stake: $32,559,911
Analyst Upside Potential: 47.77%
Atlanta Braves Holdings, Inc. (NASDAQ:BATRK) is a diversified sports and entertainment holding company that mainly operates the Atlanta Braves Major League Baseball team. Its operations are segregated into two main business segments including the Baseball segment and the Mixed-use Development segment. Under the Mixed-use Development segment, the company manages The Battery Atlanta, which is a mixed-use real-estate development featuring retail, office, hotel, and entertainment spaces.
On April 2, Atlanta Braves Holdings, Inc. (NASDAQ:BATRK) announced that it acquired Pennant Park which is a six-building complex adjacent to The Battery Atlanta. This purchase has strategically expanded the company’s real-estate portfolio of 763,465 square feet and its overall land holdings by 30%.
This news becomes notable when considering the fiscal fourth quarter results for 2024. During the year, the company grew its total revenue from $641 million a year ago to $663 million during the fourth quarter. While the Baseball segment revenue was the major contributor, adding $595 million to the total revenue, it only grew 2%. On the other hand, the Mixed-use development revenue improved 14% to reach $67 million. The recent acquisition is anticipated to induce further growth in this segment. Atlanta Braves Holdings, Inc. (NASDAQ:BATRK) is one of the 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.”
4. Bio-Rad Laboratories, Inc. (NYSE:BIO)
Market Capitalization: $6.80 billion
Number of Hedge Fund Holders: 42
Southeastern Asset Management Stake: $101,335,151
Analyst Upside Potential: 51.47%
Bio-Rad Laboratories, Inc. (NYSE:BIO) medical technology company that engages in developing and marketing a range of life science research and clinical diagnostic products. It operates through two main segments including the Life Science and Clinical Diagnostic segments. Its products range from testing kits to informatics systems and other key technologies such as chromatography, electrophoresis, flow cytometry, and more.
On April 2, RBC Capital analyst Conor McNamara maintained a Buy rating on the stock with a price target of $430. The company is focusing on enhancing its product portfolio. On February 13, Bio-Rad Laboratories, Inc. (NYSE:BIO) announced the acquisition of Stilla Technologies to enhance its digital PCR capabilities. Management noted that Stilla’s Nio dPCR systems complement existing QX Droplet Digital PCR and QX Continuum platforms, and will help broaden automation capabilities.
The company based softness in the fiscal fourth quarter of 2024. Its total revenue declined 2% year-over-year along with gross margins, which fell from 53.8% to 51.2%. To manage the losses Bio-Rad Laboratories, Inc. (NYSE:BIO) has decided to cut 5% of the workforce to save around $50 million to $55 million in 2025. Looking ahead, management anticipates 1.5% to 3.5% revenue growth in 2025. It is one of the billionaire Mason Hawkins’ 10 small-cap stocks with huge upside potential.
3. MGM Resorts International (NYSE:MGM)
Market Capitalization: $8.96 billion
Number of Hedge Fund Holders: 47
Southeastern Asset Management Stake: $83,476,943
Analyst Upside Potential: 51.56%
MGM Resorts International (NYSE:MGM) is an international gaming, hospitality, and entertainment company that offers a wide range of hotels and casinos. The company operates through four main business segments including the Las Vegas Strip Resort, Regional Operations, MGM China, and MGM Digital.
On April 28, Jefferies analyst David Katz kept a Buy rating on the stock with a price target of $53. The analyst noted that the company’s BetMGM joint Venture delivered a robust 34% year-over-year growth, driven by a 68% growth in online sports betting revenue. Katz highlighted that this growth represents a significant upside for MGM Resorts International (NYSE:MGM) considering the uncertain macroeconomic environment.
Moreover, earlier the company released its full-year results for 2024, reflecting a 7% year-over-year growth in net revenues, which reached $17.2 billion. MGM China contributed to the profitability with a record EBITDAR of $1.1 billion, indicating a 25% increase year-over-year. Nightview Capital mentioned MGM Resorts International (NYSE:MGM) in its Q4 2024 investor letter stating that the company is expanding beyond its gaming operations into the hospitality segment. The company’s non-gaming revenue mix now accounts for more than 70% of its revenue. Here’s what the fund said about the company.
“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.
MGM Resorts International (NYSE:MGM): Core Opportunity: MGM is evolving beyond gaming, focusing on luxury experiences, strategic partnerships, and international expansion to redefine hospitality.
Competitive Advantage: Revenue Mix: Non-gaming sources now account for 70% of revenue at flagship properties like the Bellagio.
Global Expansion: Projects include a $10 billion integrated resort in Osaka and ventures in Brazil, Thailand, and the UAE.
Digital Innovation: The BetMGM platform integrates digital engagement with physical resorts, appealing to millennial and Gen Z travelers.
Investment Case: MGM’s focus on blending physical and digital experiences positions it as a global leader in hospitality. Its innovative strategy aligns with shifting consumer preferences, and we believe its long history of operational success will continue.”
2. Mattel, Inc. (NASDAQ:MAT)
Market Capitalization: $5.06 billion
Number of Hedge Fund Holders: 30
Southeastern Asset Management Stake: $135,321,460
Analyst Upside Potential: 53.06%
Mattel, Inc. (NASDAQ:MAT) is an international toy and family entertainment company. It operates through two main segments including the North American segment which covers the United States and Canada, and the International segment which covers global markets. The company has a range of popular toy brands including Barbie, Hot Wheels, UNO, and more.
On April 14, the company announced renewing its global partnership with WWE, which is an international wrestling entertainment brand. The renewal means that Mattel, Inc. (NASDAQ:MAT) can continue to design, manufacture, and sell WWE-themed toys and action figures. In addition, the company posted growth during the fiscal fourth quarter of 2024. Its net sales grew 2% year-over-year to reach $1.64 billion, with margins at 50.7%, reflecting a 190 basis points increase.
Ariel Appreciation Fund mentioned Mattel, Inc. (NASDAQ:MAT) in its Q1 2025 investor letter, stating that the company remains undervalued considering the expected buyback activity. Here’s what the fund said about the company.
“Several stocks in the portfolio delivered solid returns in the quarter. Toy manufacturer Mattel, Inc. (NASDAQ:MAT) advanced over the quarter, following strong earnings results highlighted by solid sales growth, margin expansion and robust free cash flow generation. Management also provided full year 2025 1The “Magnificent Seven” are the largest stocks in the S&P 500 Index driving market performance: Apple Inc. (AAPL), Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOGL), Meta Platforms Inc. (META), Microsoft Corp. (MSFT), NVIDIA Corp. (NVDA) and Tesla, Inc. (TSLA). guidance ahead of Wall Street expectations. With buyback activity expected to accelerate and the company poised to grow market share in 2025, we believe shares remain undervalued at current levels. Attractive opportunities to exploit its intellectual property through future film and TV projects only heighten our conviction.”
1. Enovis Corporation (NYSE:ENOV)
Market Capitalization: $2.00 billion
Number of Hedge Fund Holders: 36
Southeastern Asset Management Stake: $1,605,262
Analyst Upside Potential: 79.49%
Enovis Corporation (NYSE:ENOV) is an international medical technology company that specializes in orthopedic solutions. Its core businesses include Prevention & Recovery solutions and Reconstructive solutions. The company mainly generates its revenue from designing and manufacturing medical technologies including orthopedic implants, bracing, supports, and surgical solutions.
On April 3, Analyst Vik Chopra of Wells Fargo reiterated a Buy rating on the stock with a price target of $59. One of the key reasons behind the analyst’s bullish sentiment is the appointment of the new CEO, Damien McDonald. The new CEO brings experience from his previous leadership roles in medical technology and orthopedic systems. Moreover, the analyst also noted that the company has reiterated its fiscal Q1 guidance reflecting a strong revenue and EBITDA.
During fiscal 2024 the company achieved net sales of $2.1 billion, reflecting a 23% increase year-over-year. This was driven by exceptional growth in the Reconstructive segment with global revenues growing 59% during the same time. The Reconstructive segment benefited from a recent acquisition of Lima which helped enhance the product and technology portfolio. Enovis Corporation (NYSE:ENOV) is one of the best billionaire Mason Hawkins’ 10 small-cap stocks with huge upside potential.
Diamond Hill Small Cap Fund stated the following regarding Enovis Corporation (NYSE:ENOV) in its Q3 2024 investor letter:
“Other bottom Q3 contributors included Allient, Rimini Street and Enovis Corporation (NYSE:ENOV). Shares of innovative medical technology company Enovis underperformed amid investors’ disappointment with its US surgical business growth, which slowed dramatically as the company focuses on integrating recent acquisition Lima. However, given the product overlap and different sales channels, we aren’t surprised at these disruptions and believe the acquisition will prove beneficial in the long run.”
While we acknowledge the potential of ENOV 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 ENOV 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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