In this article, we discuss the Billionaire Tom Steyer’s Stock Picks with Huge Upside Potential.
Tom Steyer, the billionaire investor and founder of Farallon Capital, has undergone a profound evolution from a pioneer of absolute-return hedge fund strategies to a leading architect of climate capitalism. After founding Farallon in 1986 and growing it to $36 billion in assets, Steyer famously exited the firm in 2012 to align his capital with his environmental convictions. Steyer’s current philosophy rests on the belief that for clean technology to win, it must be market-competitive without subsidies. He argues that “decarbonization is not just an environmental necessity but a competitive advantage, driving the creation of cleaner, cheaper, and more efficient products and services”.
This cheaper, faster, better mantra, also the title of his 2024 book, is the core of his investment thesis. Most recently, his firm raised $370 million for its Real Estate Fund I to decarbonize commercial properties. Now a 2026 candidate for Governor of California, Steyer frequently links his investment background to policy. During a Santa Barbara town hall earlier this month, he pushed back against skeptics of the green transition. His recent focus has also shifted toward the intersection of AI and energy. His fund, Farallon Capital, had a 13F portfolio worth over $20 billion at the end of the fourth quarter of 2025.
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Our Methodology
For this article, we selected stocks by combing through the 13F portfolio of Farallon Capital at the end of the fourth quarter of 2025. The top stocks were ranked based on their analyst upside potential and the top 10 from this list were filtered out. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Billionaire Tom Steyer’s Stock Picks with Huge Upside Potential
10. Microsoft Corporation (NASDAQ:MSFT)
Farallon Capital’s Stake: $1 Billion
Analyst Upside Potential: 19%
Microsoft Corporation (NASDAQ:MSFT) is a long-term stock pick of Tom Steyer. His fund first disclosed a stake in the company back in the fourth quarter of 2010. Back then, this position comprised just under 2.3 million shares. By the third quarter of 2011, this stake had grown to over 4.5 million shares. Thereafter, the fund trimmed the holding and sold it off completely by the middle of 2012. A new position in the stock was then opened in the third quarter of 2013. This comprised 3.8 million shares. The company has featured in the 13F portfolio of the fund consistently since then. Filings for the fourth quarter of 2025 show that the fund owned 2.2 million shares in the firm, up 15% compared to filings for the previous quarter.
Microsoft Corporation (NASDAQ:MSFT) recently released earnings for Q3 2026. It disclosed that AI-related revenue is now on a $37 billion annual run-rate, a 123% increase year-over-year. The company reported over 20 million paid Copilot users, signaling that it is successfully converting its massive user base into high-margin, recurring AI subscriptions. Azure and other cloud services grew 40% in the most recent quarter, outperforming expectations. Hedge funds are rewarding Microsoft’s aggressive data center build-out. CEO Satya Nadella confirmed that Microsoft added one gigawatt of capacity this quarter alone and is on track to double its overall footprint in just two years.
9. Boston Scientific Corporation (NYSE:BSX)
Farallon Capital’s Stake: $709 Million
Analyst Upside Potential: 21%
Boston Scientific Corporation (NYSE:BSX) has consistently featured in the 13F portfolio of Farallon Capital since the third quarter of 2020. Back then, this position comprised just under 8.3 million shares. The fund steadily added to this stake until the fourth quarter of 2021, growing it to over 16.8 million shares. Thereafter, it started trimming the stock. Filings for the fourth quarter of 2025 show that the fund owned 7.4 million shares in the firm, up more than 56% compared to filings for the previous quarter. The company develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide.
READ ALSO: 15 Under-the-Radar Picks from David Einhorn That Are Quietly Dominating 2026.
Boston Scientific Corporation (NYSE:BSX) is attracting interest from elite investors due to crown jewel products, which dominated headlines at the Heart Rhythm 2026 conference. The first of these was FARAPULSE PFA. New clinical data demonstrated that this device is superior to traditional antiarrhythmic drugs for treating persistent atrial fibrillation. The second was the success of WATCHMAN. The CHAMPION-AF study recently confirmed that the WATCHMAN device is a safe and effective first-line alternative to blood thinners, which opens up a significantly larger patient market. In its Q1 2026 earnings report, Boston Scientific beat revenue expectations, $5.20 billion versus $5.17 billion, but lowered its full-year guidance.
8. Amazon.com, Inc. (NASDAQ:AMZN)
Farallon Capital’s Stake: $1 Billion
Analyst Upside Potential: 24%
Amazon.com, Inc. (NASDAQ:AMZN) is a relatively new addition to the 13F portfolio of Farallon Capital. The fund first disclosed a stake in the company back in the second quarter of 2025. This position comprised a little over 3 million shares. In the third quarter of 2025, the fund grew the stake to around 3.5 million shares, adding 15% to the previous holding. Filings for the fourth quarter of 2025 show that the fund owned 4.5 million shares in the company, up 28% compared to filings for the previous quarter. Amazon engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally.
Amazon.com, Inc. (NASDAQ:AMZN) is being treated as a primary beneficiary of the AI infrastructure super-cycle in 2026. While the stock has faced some short-term price pressure due to capital expenditure forecasts, the smart money is buying into the rapidly accelerating cloud and chip divisions of the firm. In the Q1 2026 earnings report, the company revealed that AWS revenue grew 28% year-over-year to $37.6 billion, its fastest growth in 15 quarters. CEO Andy Jassy revealed that AWS’s AI revenue run-rate has exceeded $15 billion, representing roughly 10% of total AWS revenue. Hedge funds view this as a clear signal that Amazon is successfully monetizing GenAI at scale.
7. TransUnion (NYSE:TRU)
Farallon Capital’s Stake: $58 Million
Analyst Upside Potential: 38%
TransUnion (NYSE:TRU) is a long-term holding in the 13F portfolio of Farallon Capital. The firm first appeared in the portfolio of the fund in the third quarter of 2017. Back then, this position comprised 2.3 million shares. The fund steadily added to this holding and grew it to more than 5.2 million shares by the fourth quarter of 2018. Thereafter, it started trimming the stake. By the second quarter of 2022, this stake had shrunk to close to 1.1 million shares. The fund then started loading up on the stock again. By the second quarter of 2023, the fund owned 9.3 million shares in the firm. However, since then, another trimming cycle has taken place. Filings for the fourth quarter of 2025 show that the fund owns 675,000 shares in the firm, down over 85% compared to filings for the previous quarter.
TransUnion (NYSE:TRU) recently released Q1 results, providing a major bullish signal to institutional investors. The firm reported an Adjusted EPS of $1.18, beating the consensus analyst estimate of $1.11. Revenue hit $1.25 billion, a 14% year-over-year increase. Following the completion of its majority acquisition of Trans Union de Mexico, the company raised its full-year 2026 revenue guidance to $5.10 billion – $5.13 billion. Hedge funds view this acquisition as a high-margin revenue driver that is not yet fully priced into the stock. Financial services revenue surged 24% in Q1 2026, driven largely by a 50% increase in mortgage revenue.
6. Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX)
Farallon Capital’s Stake: $323 Million
Analyst Upside Potential: 41%
Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) first appeared in the 13F portfolio of Farallon Capital in the third quarter of 2018. Back then, this position comprised over 141,000 shares. By early 2019, however, this stake had been sold off completely. A new position in the stock was then opened in the third quarter of 2023. This was also sold off within months. The latest stake was disclosed in filings for the second quarter of 2024. This comprised just under 500,000 shares. The fund has steadily added to this position since then. Filings for the fourth quarter of 2025 show that the fund owned just under 7 million shares in the firm, up 20% compared to filings for the previous quarter.
The primary catalyst for Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) is the global launch of PALSONIFY, the first once-daily oral treatment for acromegaly. Earlier this month, Crinetics received European Commission approval, following its earlier US FDA clearance. This makes it the only oral alternative to the painful, monthly somatostatin analogue injections that currently dominate the market. Hedge funds are betting on rapid adoption. Early data shows a 5% adoption rate within just months of launch, with analysts projecting 2026 revenues to hit $62 million, significantly higher than original consensus estimates.
While we acknowledge the potential of CRNX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRNX and that has 100x upside potential, check out our report about the cheapest AI stock.
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