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Billionaire Mason Hawkins’ 11 Stock Picks with Huge Upside Potential

In this article, we will take a detailed look at the Billionaire Mason Hawkins’ 11 Stock Picks with Huge Upside Potential. For a quick overview of such stocks, read our article Billionaire Mason Hawkins’ 5 Stock Picks with Huge Upside Potential.

Otis “Mason” Hawkins is a famous value investor who founded Southeastern Asset Management in 1975. Hawkins is estimated to be worth around $1.8 billion and his hedge fund had about $5.5 billion in assets under management as of March 2023. Southeastern Asset Management hunts for bottom-up opportunities around the globe, with the fund’s core value and investing philosophy finding its roots in Benjamin Graham’s value investing approach. Hawkins is among the traditional class of value investors who staunchly stick to age-old, tried and tested value investing principles. Back in 2008, Hawkins was asked during an interview how he examines intrinsic value of companies. The billionaire said he focuses on free cash flow as he and his team tries to project FCF for the next seven years, “put a low or no growth terminal multiple on the business past 7 years, and discount back at a conservative discount rate.”

“The second method calculates net asset value by adjusting book values of assets and liabilities to current liquidation values. (For example, real estate is rarely worth the original cost carried on the books, particularly if it’s been held for a long period.) Third, we check our longhand math against a data base of comparable transactions over the last 30 years, taking into account the interest rate environment at the time of the transactions. We mark our appraisal to the lower of the two values when comparable sales and our longhand math differ,” Hawkins added.

Longleaf Partners Fund, where Hawkins is a co-portfolio manager, is also a notable fund backed by Southeastern and regularly posts its performance and commentary on its website. The fund said in its Q4’2023 letter that it more than doubled the Russell 1000 Value Index, “almost equalled the tech-led S&P 500 Index and approximately doubled” its absolute return goal of inflation plus 10%. The fund said when everyone was busy worrying about recession, its team was finding contrarian opportunities:

“Our research team was busy in 2023. At the start of the year when everyone was still predicting an imminent recession, we saw opportunity as contrarians and improved our portfolio with weighting changes and compelling new investments, many of which have already contributed to the portfolio. In the fourth quarter, we have seen a growing consensus about a soft landing. This consensus view concerns us for the same reasons we were excited to be buying earlier in the year when everyone was fearful. However, we are confident in our ability to keep delivering double-digit returns with our portfolio of competitively advantaged, financially strong businesses with management teams that can take self-help measures in any environment. 2023 showed us that our investment approach can add meaningful value, even in a challenging period for bottom-up active equity managers.”

Methodology

For this article we scanned billionaire Mason Hawkins’ Q3’2023 portfolio and picked 11 stocks with the highest upside potential from their current prices based on average analyst price estimates. Unlike many other hedge funds, Hawkins’ top positions are not in stocks like  Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA) as the value investor is looking at undervalued companies that are still under the radar. We ranked this list in ascending order of upside potential of these stocks. We also mentioned the number of hedge fund investors for these stocks. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).

11. Fiserv Inc (NYSE:FI)

Number of Hedge Fund Investors: 70

Average Analyst Price Estimate: $149

Upside Potential: 6.43%

Billionaire Mason Hawkins owns a $47 million stake in financial services company Fiserv Inc (NYSE:FI) as of the end of the third quarter of 2023. Yahoo Finance data shows that Wall Street analysts have set a $149 price target on the stock for the next 12 months, while the stock was trading at around $137.

As of the end of the third quarter of 2023, 70 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Fiserv Inc (NYSE:FI).

Earlier this month, Oppenheimer upgraded the stock to Outperform from Perform. Oppenheimer’s analyst Dominick Gabriele said in his note that Fiserv Inc’s (NYSE:FI) “penetration expectation” through 2026 is impressive and adds an “upward upward bias for sustaining high total company margin expansion.”

Giverny Capital Asset Management made the following comment about Fiserv, Inc. (NYSE:FI) in its Q3 2023 investor letter:

“Turning to our new positions, we have been following Fiserv, Inc. (NYSE:FI) for a couple of years now and finally bought a position during the third quarter. Fiserv has two businesses that reinforce each other: it is a key technology provider to several thousand global banks and credit unions. Mid-sized financial institutions need to offer a full complement of digital banking services to compete with larger national banks, but they can’t afford to build out an internal tech capacity. It’s more cost effective to outsource to Fiserv.

Fiserv’s other business is, broadly, payment processing: when you tap and pay at your favorite restaurant or retailer, you may be using a Fiserv device. That device, in turn, may connect directly to the business owner’s bank – and Fiserv built out the bank’s tech stack. The synergy here is important. Fiserv can sell terminals to the restaurant itself, but banks may also sell Fiserv products as part of their customer relationships. There is terrific distribution synergy

For the next few years, Fiserv’s growth should be led by Clover, a payments acceptance system that offers merchants faster transaction times, better fraud protection and stronger operational controls than many existing acceptance networks. While Clover is a clear leader in acceptance, it has a small market share today and could grow at double digit rates for some years. In turn, that should drive solid earnings growth for Fiserv. I believe the stock trades for a low-teens multiple of likely 2024 earnings, an attractive price for a steady compounder.”

10. XPO Inc (NYSE:XPO)

Number of Hedge Fund Investors: 33

Average Analyst Price Estimate: $96

Upside Potential: 10.34%

American transportation company XPO Inc (NYSE:XPO) ranks 10th in our list of the stocks in billionaire Mason Hawkins’ portfolio with upside potential. According to Yahoo Finance, the stock’s one-year average price estimate is $96. In October XPO Inc (NYSE:XPO) posted third quarter results. Adjusted EPS in the period came in at $0.88, beating estimates by $0.24. Revenue in the quarter jumped 1.7% year over year to $1.98 billion, surpassing estimates by $50 million.

As of the end of the third quarter of 2023, Hawkins owns  a $1.2 million stake in XPO Inc (NYSE:XPO).

ClearBridge Mid Cap Growth Strategy made the following comment about XPO, Inc. (NYSE:XPO) in its Q3 2023 investor letter:

“Our holdings in the industrials sector also contributed during the quarter. XPO, Inc. (NYSE:XPO), which provides freight transportation services internationally, rallied on the news that industry competitor Yellow had filed for bankruptcy, resulting in market share gains for XPO.”

9. Lazard Inc (NYSE:LAZ)

Number of Hedge Fund Investors: 13

Average Analyst Price Estimate: $45.50

Upside Potential: 15.14%

Asset management company Lazard Inc (NYSE:LAZ) ranks ninth in our list of the top Mason Hawkins stocks with upside potential. The stock was trading at around $38.47 as of January 17 while its average price target set by analysts for the next 12 months is $45.50.

As of the end of the third quarter of 2023, 13 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Lazard Inc (NYSE:LAZ). The biggest stakeholder of Lazard Inc (NYSE:LAZ) during this period was John W. Rogers’ Ariel Investments which owns a $222 million stake in Lazard Inc (NYSE:LAZ).

8. Affiliated Managers Group Inc (NYSE:AMG)

Number of Hedge Fund Investors: 28

Average Analyst Price Estimate: $176

Upside Potential: 16.85%

Billionaire Mason Hawkins owns a $118 million stake in investment management company Affiliated Managers Group Inc (NYSE:AMG). The stock was trading at around $147.

As of the end of the third quarter of 2023, 28 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Affiliated Managers Group Inc (NYSE:AMG). The biggest hedge fund stakeholder of Affiliated Managers Group Inc (NYSE:AMG) was John W. Rogers’ Ariel Investments which owns a $155 million stake.

Ariel Small Cap Value Strategy made the following comment about Affiliated Managers Group, Inc. (NYSE:AMG) in its Q3 2023 investor letter:

“Also in the quarter, we initiated a new position in boutique asset manager, Affiliated Managers Group, Inc. (NYSE:AMG). AMG has a unique business model in which it purchases meaningful equity interests in boutique asset management firms and in return receives a fixed percentage of revenues. The Company’s partnership approach allows for its affiliates’ management teams to own significant equity while maintaining operational independence. We believe AMG’s size and scale allow the company to be the leading destination for growing boutique firms addressing succession issues and/or seeking assistance in marketing, distribution and product development. In our view, investors currently underappreciate the company’s active and alternative-asset affiliate business model.”

7. FedEx Corp (NYSE:FDX)

Number of Hedge Fund Investors: 67

Average Analyst Price Estimate: $297

Upside Potential: 17.39%

FedEx Corp (NYSE:FDX) ranks seventh in our list of the best Mason Hawkins’ stocks to buy with upside potential. Hawkins’ fund owns a $158.1 million stake in FedEx Corp (NYSE:FDX).

In December FedEx Corp (NYSE:FDX) said it plans to buy back $1 billion worth of shares.

As of the end of the third quarter of 2023, 67 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in FedEx Corp (NYSE:FDX).

In addition to FedEx, hedge funds also like  Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA).

6. Live Nation Entertainment Inc (NYSE:LYV)

Number of Hedge Fund Investors: 40

Average Analyst Price Estimate: $112

Upside Potential: 25.84%

Entertainment company Live Nation Entertainment Inc (NYSE:LYV) shares have gained about 19% over the past one year. They were trading at around $90.60 as of January 17. According to Yahoo Finance data, the stock’s average analyst price estimate is $112.

As of the end of the third quarter of 2023, 40 hedge funds tracked by Insider Monkey had stakes in Live Nation Entertainment Inc (NYSE:LYV). The biggest hedge fund stakeholder of Live Nation Entertainment Inc (NYSE:LYV) during this period was Robert Joseph Caruso’s Select Equity Group which owns a $924 million stake in Live Nation Entertainment Inc (NYSE:LYV).

Roth MKM recently upgraded the stock to Buy from Neutral and upped its price target to $114 from $92.

The analyst said demand of live events over the next few years will be above-average.

Like Live Nation, hedge funds also like  Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA).

Baron Discovery Fund made the following comment about Live Nation Entertainment, Inc. (NYSE:LYV) in its Q3 2023 investor letter:

“Liberty Media Corporation-Liberty Live is a tracking stock created on 8/4/2023 representing Liberty Media Corporation’s holdings in Live Nation Entertainment, Inc. (NYSE:LYV) shares. Those holdings were previously attributed to Liberty SiriusXM and reattributed to a the newly created Liberty Live Group vehicle to reduce the complexity of the Liberty SiriusXM structure and make way for its potential combination with the underlying SiriusXM business. We believe the separation created some selling pressure on Liberty Live, creating an attractive discount of over 40% to the underlying value of its Live Nation holdings, and we took advantage of that discount to build a position. The Liberty Live Group is a small-cap vehicle through which we can own the underlying Live Nation business, which we have tracked and liked for years. Live Nation has significant competitive advantages in the live entertainment industry due to its unique combination of concert promotion, ticketing, venue management, and sponsorship businesses, which create a market share flywheel and margin structure that is difficult for competitors in any one of these underlying sub-segments to replicate independently. In addition to the upside we see in Live Nation, we think Liberty Live Group could eventually transition from a tracking stock to an asset-backed vehicle, which would pave the way for a structure consolidation with Live Nation and allow us to capture the current wide NAV discount.”

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Disclosure. None. Billionaire Mason Hawkins’ 11 Stock Picks with Huge Upside Potential was initially published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

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Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

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