Rob Citrone founded Discovery Capital Management in 1999. Based in Connecticut, Discovery Capital is one of the Tiger Cub hedge funds. Rob Citrone worked as a portfolio manager at Fidelity Investments and Julian Robertson’s Tiger Management before founding Discovery Capital. Citrone was also a wrestler in high school and today owns a small slice of his favorite football team, the Pittsburgh Steelers. His firm focuses on liquidity, valuation multiples, past and potential growth in picking stocks, and has a focus on technology, services, basic materials, and financial sectors. The last reported 13F filing for Q4 2024 included $1.47 billion in managed 13F securities and a top 10 holdings concentration of 44.09%.

Robert Citrone recently cut his long equity portfolio. In his January monthly letter, obtained by the Institutional Investor, the firm halved its net equity exposure to 25% from a peak of 50% just at year-end to go flat to short in developed markets. He has been expecting a stock market correction of 5% to 7%. He believes it is meaningful enough to reduce risk and potentially be short, even though it’s not a large sell-off. Citrone thinks the market is expensive in historical terms, especially relative to interest rates. Still, the majority of global investors are long corporate America, including venture, private equity, private credit, long-only equity, and/or credit long-short hedge funds, even as the US enters tariff uncertainty and no more Fed cuts are anticipated in the near term.

That being said, we’re here with a list of billionaire Rob Citrone’s 10 small-cap stock picks with huge upside potential.

Our Methodology

To compile the list of billionaire Rob Citrone’s 10 small-cap stock picks with huge upside potential, we sifted through the Q4 2024 13F filings of Discovery Capital Management from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 50 stock picks that were trading between $1 billion and $10 billion and ranked the stocks in ascending order of this upside potential. We have also added Discovery Capital Management’s stake in each company and the hedge fund sentiment around each stock.

Note: All data was sourced on May 8.

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 Rob Citrone’s 10 Small-Cap Stock Picks with Huge Upside Potential

10. Parsons Corp. (NYSE:PSN)

Discovery Capital Management’s Stake: $14.23 million

Number of Hedge Fund Holders: 41

Market Capitalization as of May 8: $6.87 billion

Average Upside Potential as of May 8: 18.74%

Parsons Corp. (NYSE:PSN) provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets. It offers critical technologies like cyber, missile defense, intelligence, electronic warfare, and border security & critical infrastructure protection. It also provides AI/ML, cloud, systems integration, and transportation network software.

Parsons’ Critical Infrastructure segment represented 46% of the company’s total Q1 2025 revenue due to infrastructure spending in both North America and the Middle East. In the US, infrastructure investment is projected to continue until 2028, with a subsequent 6 to 8-year tail. Parsons is also securing large and high-priority projects in hard infrastructure areas like roads, highways, bridges, airports, and rail.

The Critical Infrastructure segment saw a 14% revenue increase in Q1 year-over-year, with 8% organic growth. This performance contributed to a record first-quarter adjusted EBITDA margin of 10.3% for the segment, a 2.6% increase year-over-year. The segment also made over $1 billion in quarterly contract awards. Earlier in February, Truist Financial analyst Tobey Sommer reiterated his Buy rating on Parsons Corp.’s (NYSE:PSN) shares, with a $85 price target.

Artisan Small Cap Fund added to its position in the company and stated the following regarding Parsons Corporation (NYSE:PSN) in its Q4 2024 investor letter:

“Notable adds in the quarter included John Bean Technologies, Parsons Corporation (NYSE:PSN) and Gitlab. Parsons Corporation is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development and critical infrastructure protection. We believe the company is well positioned to benefit from several secular growth drivers, including growing defense spending, an acceleration in North American infrastructure spending, growing Middle Eastern infrastructure spending as the region’s countries diversify their economies from oil to entertainment and tourism, and growing per- and polyfluoroalkyl substances remediation spending. Shares declined as the proposed Department of Government Efficiency caused greater uncertainty in the defense and infrastructure markets. However, within both end markets, we have high confidence that its programs are aligned with required spending rather than areas that could be targeted for efficiency savings. Therefore, we added to the position.”

9. Everus Construction Group Inc. (NYSE:ECG)

Discovery Capital Management’s Stake: $13.15 million

Number of Hedge Fund Holders: 39

Market Capitalization as of May 8: $2.48 billion

Average Upside Potential as of May 8: 18.84%

Everus Construction Group Inc. (NYSE:ECG) provides contracting services in the US. It operates through two segments: Electrical & Mechanical (E&M) and Transmission & Distribution (T&D). It serves utilities, manufacturing, transportation, commercial, industrial, institutional, renewables, and governmental customers.

Everus’s E&M segment made ~$550 million in Q4 2024 revenue, which was an improvement of 21% year-over-year due to higher workloads in the commercial market, particularly within the data center sub-market. Growth in the institutional and service, and other end markets, also triggered this increase. For the full year 2024, while overall E&M revenues softened by 5%, the segment experienced increased revenue growth in H2 of the year, notably in the data center sub-market.

The E&M segment’s backlog also contributed significantly to the company’s total backlog of $2.8 billion, which was up 38% year-over-year. Everus’ 2025 guidance projects overall revenue between $3 and $3.1 billion, with E&M expected to be a key contributor. While Everus Construction Group Inc. (NYSE:ECG) is monitoring potential impacts from emerging technologies like DeepSeek on data center spending, current industry commentary suggests continued investment in this area.

Middle Coast Investing initiated a position in the company and stated the following regarding Everus Construction Group, Inc. (NYSE:ECG) in its Q1 2025 investor letter:

“Everus Construction Group, Inc. (NYSE:ECG) – I mentioned this briefly last quarter. We had a small position in a spin-off from MDU Resources, a utility company, and sold that position not long into Q1 at $70/share. The stock dived after its earnings report underwhelmed the market, and then further due to sector worries. We bought between $39 and $48, and the stock finished the quarter at $37.09.

Everus primarily builds power lines, pipelines, and similar infrastructure. It is based in North Dakota but operates everywhere in the U.S. except New England and Wisconsin. Providing construction services means it should be able to maintain decent gross margins, since it aligns its costs to each given project. It is levered to demand for power and energy infrastructure, which is needed in the United States. Its revenue backlog grew 38% in 2024 and is nearly equal to 2024 revenue (not all of that backlog will be realized in 2025, but also, 2024 revenue was 41% higher than 2023 year-end backlog). It has been a steady grower for the past five years. This is the sort of business that gets a good multiple, and in a stable environment is worth in the $60s or $70s (around where we first sold it)…” (Click here to read the full text)

8. Cemex S.A.B. de C.V. (NYSE:CX)

Discovery Capital Management’s Stake: $9.61 million

Number of Hedge Fund Holders: 20

Market Capitalization as of May 8: $9.82 billion

Average Upside Potential as of May 8: 23.08%

Cemex S.A.B. de C.V. (NYSE:CX) produces, markets, distributes, and sells cement, ready-mix concrete, aggregates, urbanization solutions, and other construction materials and services. It also provides logistics & transportation, retail, pavement services, design & engineering, and other services.

In Q1 2025, the company’s Urbanization Solutions portfolio saw a 14% decline in sales due to the conclusion of large infrastructure projects in Mexico and lower US concrete block demand, but the EBITDA margin expanded by 0.5 percentage points. This was driven by the circularity business within Urbanization Solutions, which achieved a 5% EBITDA growth despite flat sales.

The circularity business repurposes industrial byproducts and has a CAGR of 27% over the past 2 years. Cemex S.A.B. de C.V. (NYSE:CX) plans to further develop the Urbanization Solutions portfolio, evidenced by the recent expansion of its Urbanization Solutions busi Q3 2025. This plant will produce mortar with at least a 30% lower carbon footprint compared to standard products.

7. Golar LNG Ltd. (NASDAQ:GLNG)

Discovery Capital Management’s Stake: $17.72 million

Number of Hedge Fund Holders: 56

Market Capitalization as of May 8: $4.04 billion

Average Upside Potential as of May 8: 23.83%

Golar LNG Ltd. (NASDAQ:GLNG) designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. It operates through three segments: FLNG, Corporate & Other, and Shipping. It engages in the regasification, storage, & offloading of LNG; operation of floating LNG vessels or projects; transportation of LNG carriers; and vessel management activities.

The company’s FLNG asset, called the Hilli, generated $277 million in EBITDA in 2024 due to Golar’s operational performance with 100% economic uptime and the delivery of 128 cargoes since its 2018 startup. The acquisition of the remaining 8% minority stake in Hilli during Q4 2024 is expected to further enhance its contribution. This acquisition leads to immediate cash flow accretion through an increase of ~$7 million per year in the fixed cash tariff component.

The Hilli has also secured a 20-year redeployment contract in Argentina with Southern Energy, which is expected to commence operations in 2027 following vessel upgrades and relocation. This long-term contract adds ~$0.5 billion to Golar LNG Ltd.’s (NASDAQ:GLNG) EBITDA backlog and increases the total backlog to $11 billion before commodity exposure and inflation adjustments.

6. Pampa Energia (NYSE:PAM)

Discovery Capital Management’s Stake: $13.38 million

Number of Hedge Fund Holders: 12

Market Capitalization as of May 8: $3.98 billion

Average Upside Potential as of May 8: 27.15%

Pampa Energia (NYSE:PAM) is an integrated power company in Argentina. It operates through Oil & Gas; Generation; Petrochemicals; and Holding, Transportation, & Others segments. It generates electricity through thermal plants, hydroelectric plants, and wind farms with a 5,472 MW installed capacity. It also explores for and produces oil & gas.

The company’s Upstream Gas Production achieved record gas output in 2024 and marked a 21% year-over-year increase in average production and an 80% increase since 2017. This growth is attributed to the performance of Pampa’s wells in Vaca Muerta. In Q4 specifically, gas production rose by 11% year-on-year, with shale gas increasing its share of the total gas production, from 32% in 2023 to ~50% in 2024.

While Pampa Energia (NYSE:PAM) is diversifying into shale oil by developing Rincon de Aranda, natural gas from Vaca Muerta continues to be a key revenue generator. JPMorgan recently upgraded the price target on the stock from $59 to $93.5. JPMorgan remains optimistic about Argentina’s oil and gas industry and believes there is still room for growth in the area.

5. Grupo Financiero Galicia (NASDAQ:GGAL)

Discovery Capital Management’s Stake: $78.81 million

Number of Hedge Fund Holders: 24

Market Capitalization as of May 8: $7.77 billion

Average Upside Potential as of May 8: 41.18%

Grupo Financiero Galicia (NASDAQ:GGAL) is a financial services holding company that provides various financial products and services to individuals and companies in Argentina. It operates through Bank, Naranja X, Insurance, and Other Businesses segments. It also offers private banking services to high-net-worth individuals and operates a digital investment platform.

In Q4 2024, Banco Galicia, which is a subsidiary of Grupo Financiero Galicia, reported a net income of 527 billion pesos, was was up 311% year-over-year. This performance contributed to the Grupo Financiero Galicia’s overall net income of 574 billion pesos for the quarter, which was 203% higher. For the full year 2024, Banco Galicia drove Grupo Financiero Galicia’s net income to a record 1.6 trillion pesos, which was up 121%.

Banco Galicia’s growth is evidenced by the increase in peso-denominated loans to the private sector, which surged by 228.8% year-over-year. While the net interest income for the Grupo Financiero Galicia decreased by 56%, Banco Galicia benefited from a 10% increase in net fee income from December 2023 and a 234% increase in net income from financial instruments due to higher results from government securities.

4. Vista Energy S.A.B. de C.V. (NYSE:VIST)

Discovery Capital Management’s Stake: $71.46 million

Number of Hedge Fund Holders: 18

Market Capitalization as of May 8: $4.43 billion

Average Upside Potential as of May 8: 44.10%

Vista Energy S.A.B. de C.V. (NYSE:VIST) explores and produces oil & gas in Latin America. The company’s principal assets are located in the Neuquina basin, Argentina, and Vaca Muerta. It owns producing assets in Argentina and Mexico. In addition, it’s involved in drilling and workover activities located in Argentina.

The company’s Upstream Oil & Gas Production in the Vaca Muerta shale play drives Vista’s growth, which is also amplified by the acquisition of Petronas Argentina. In Q1 2025, Vista produced 80,900 BOE/d, which was up 47% year-over-year. Oil production specifically reached 69,600 barrels per day, which was also up 47%. This production growth directly fueled a 38% year-over-year increase in total revenues for the quarter, which reached $438 million.

This acquisition of Petronas Argentina also includes oil midstream capacity, which adds 57,000 barrels per day of contracted pipeline capacity. This brings the company’s pro forma total oil pipeline capacity to ~200,000 barrels per day. Vista Energy S.A.B. de C.V. (NYSE:VIST) is currently working on a revised 2025 plan to incorporate this acquisition.

3. Nebius Group (NASDAQ:NBIS)

Discovery Capital Management’s Stake: $53.96 million

Number of Hedge Fund Holders: 66

Market Capitalization as of May 8: $6.63 billion

Average Upside Potential as of May 8: 55.07%

Nebius Group (NASDAQ:NBIS) builds infrastructure for the global AI industry. It provides AI-centric cloud platforms, large-scale GPU clusters, and developer tools. It also operates Toloka AI for data services, TripleTen for tech education, and Avride for autonomous driving, which creates a full ecosystem to support AI development and applications.

In April, the company partnered with DDN. This is one of the world’s leading AI and data intelligence companies. By integrating DDN Infinia and EXAScaler into its AI cloud, Nebius is expanding the performance and scalability of its platform for AI workloads. With DDN and Nebius, enterprises can deploy AI workloads faster and more efficiently, at a lower cost.

Earlier in February, DA Davidson initiated coverage of Nebius Group (NASDAQ:NBIS) with a Buy rating and a $50 price target. In Q4 2024, the company’s overall revenue increased by 466% year-over-year to $37.9 million. This was fueled by advancements in both infrastructure and software. Nebius’ core AI infrastructure business alone grew by 602% year-over-year, which contributed to the company’s overall revenue increase.

2. Geo Group Inc. (NYSE:GEO)

Discovery Capital Management’s Stake: $51.47 million

Number of Hedge Fund Holders: 39

Market Capitalization as of May 8: $3.92 billion

Average Upside Potential as of May 8: 69.68%

Geo Group Inc. (NYSE:GEO) owns, leases, operates, and manages secure facilities, processing centers, and community-based reentry facilities. It operates through 4 segments: US Secure Services, Electronic Monitoring & Supervision Services, Reentry Services, and International Services. It also provides facility management services, such as the provision of security, rehabilitation, and food services.

The stock is rated as a Buy at Jones Trading with a $55 price target. The company’s Secure Services segment, which includes owned and leased facilities, improved its revenue by ~3% year-over-year in Q4 2024 and contributed to the overall quarterly revenue of ~$608 million. This segment is growing due to the demand from Immigration and Customs Enforcement/ICE and the US Marshals Service.

GEO is expanding its detention capacity for ICE, which includes an anticipated $70 million investment ($9 million incurred in 2024, with $38 million planned for 2025) to renovate existing idle facilities. This is expected to create ~17,000 incremental detention beds, which would increase GEO’s total available capacity for ICE detention from ~15,000 beds to ~32,000. These additional beds could generate between $500 and $600 million in incremental annualized revenues.

River Road Small Cap Value Fund stated the following regarding The GEO Group, Inc. (NYSE:GEO) in its Q4 2024 investor letter:

“The holding with the highest contribution to active return in the portfolio during Q4 was The GEO Group, Inc. (NYSE:GEO), an owner and operator of private prisons for federal, state, local, and foreign governments. GEO rallied significantly after the U.S. election victory of President Trump and the Republican majority in the House and Senate. GEO is poised to play a large role in President Trump’s top agenda item of mass deportation of undocumented immigrants. Given the estimates of roughly 11 million to 13 million undocumented immigrants crossing the border during the Biden administration, the resources required for deportation will be enormous. The demand for detention beds should greatly exceed the available supply for several years. We expect GEO’s largest customer, Immigration and Customs Enforcement (ICE), will take all available GEO detention beds for the foreseeable future. Additionally, GEO’s electronic monitoring segment has held the exclusive contract for ICE’s Alternatives to Detention program for 15 years. This is GEO’s highest margin segment, and we expect a substantial increase in electronic monitoring usage. We trimmed the position.”

1. IREN Ltd. (NASDAQ:IREN)

Discovery Capital Management’s Stake: $11.54 million

Number of Hedge Fund Holders: 44

Market Capitalization as of May 8: $1.56 billion

Average Upside Potential as of May 8: 187.15%

IREN Ltd. (NASDAQ:IREN) owns and operates bitcoin mining data centers. It also provides high-performance computing solutions, such as AI cloud services. The company was formerly known as Iris Energy Limited and changed its name to IREN Limited in November 2024.

Earlier in February, B. Riley analyst Nick Giles raised the price target on IREN to $21 from $19, while keeping a Buy rating on the shares following its FQ2 2025 report. This sentiment was backed by the company’s Horizon 1 announcement for AI/HPC. This is a 75 megawatt liquid-cooled AI data center, which allows the company to capitalize on the shortage of such facilities. IREN Ltd. (NASDAQ:IREN) made $119.6 million in FQ2 revenue, which was up 181% year-over-year.

Later in March, the company also signed a 600MW grid connection agreement with AEP Texas Inc. for its West Texas Sweetwater 2 project. This would allow IREN to advance its 2GW Sweetwater data center hub. The project is expected to be energized by late 2027. During this FQ2, IREN also mined 1,347 Bitcoins, which was an increase of 813 Bitcoins sequentially.

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