We recently published a list of Unknown Billionaire Phill Gross’ 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where ConocoPhillips (NYSE:COP) stands against unknown billionaire Phill Gross’ other stock picks with huge upside potential.
Phillip “Phill” Gross is a seasoned investor and influential figure in the world of institutional asset management, best known as the Co-founder, Managing Director, and Healthcare Portfolio Manager of Adage Capital Management. While Robert Atchinson, his longtime collaborator and fellow Co-founder, serves as the firm’s Portfolio Manager, Gross’s leadership and strategic vision have played a foundational role in shaping Adage’s long-term investment philosophy and reputation. The two met in the mid-1980s while working as Harvard University’s endowment analysts. Their professional synergy led them to leave Harvard Management Company in the 1990s, following public scrutiny over performance-based bonuses. With the backing of an initial $1.8 billion investment from Harvard and an agreement for the university to receive 10% of the firm’s earnings, they launched Adage Capital Management in 2001 alongside an 18-person team.
Under Gross’s co-leadership, Adage has become a key player in managing assets for prominent institutional clients such as Harvard University, Dartmouth College, Northwestern University, the American Red Cross, and the Getty Foundation. The firm specializes in long/short equity strategies guided by fundamental analysis and engages in risk arbitrage and event-driven opportunities when market conditions are favourable. Adage Capital Management and its predecessor, the Select Equity Group at Harvard Management Company, have consistently outperformed broader market benchmarks by an average of 3.5% over the past 15 years. This is a testament to the disciplined, research-driven investment framework that Gross helped instill.
Gross himself brings a deep background in healthcare investing, having served for nearly two decades at Harvard Management Company in various roles, including Healthcare and Retail Analyst, Equity Research Director, and Partner. His academic credentials include a B.S. in finance and economics (1982) and an M.S. in investments (1983), both from the University of Wisconsin. He remains actively engaged with his alma mater, serving on the advisory boards of the Steve Hawk Center for Applied Securities Analysis and the Nicholas Center for Applied Corporate Finance. In recognition of his professional accomplishments and ongoing contributions, Gross received the Distinguished Alumnus Award from the University of Wisconsin Business School in 2006.
Beyond finance, Gross is a committed philanthropist. He co-founded Strategic Grant Partners, an organization focused on driving systemic change in education and family services throughout Massachusetts. He also serves as Vice President of the Board of Directors for Youth Enrichment Services, a nonprofit that provides urban youth with outdoor recreational experiences. In addition, he holds board positions with the U.S. Ski and Snowboard Association, where he is Vice-Chair of the Investment Committee, and with the T2 Foundation.
Adage Capital Management’s latest 13F filing for Q4 2024 reported $57.19 billion in managed securities, with the top 10 holdings comprising 31.7% of the total portfolio, demonstrating a strategic yet diversified approach to asset allocation. While Atchinson oversees day-to-day portfolio management, Gross’s enduring influence and expertise, particularly in healthcare investing, continue to shape the firm’s long-term success and institutional credibility.
Our Methodology
We searched through Adage Capital Management’s Q4 2024 13F filings to identify unknown billionaire Phill Gross’ stock picks with the highest upside potential. We compiled the equities with upside potential higher than 34% at the time of writing this article and discussed why they stood out as strong potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
An underground network of pipelines transporting oil through an expansive terrain.
ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders as of Q4: 86
Adage Capital Management’s Equity Stake: $428.23 Million
Upside Potential as of May 2: 34.90%
ConocoPhillips (NYSE:COP) is a global leader in independent exploration and production, with operations spanning the exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, natural gas liquids, and liquefied natural gas. Despite a year-over-year earnings decline in 2024, the company maintained a disciplined approach to capital allocation and shareholder value. In Q4 2024, ConocoPhillips reported earnings of $2.3 billion, or $1.90 per share, down from $3.0 billion, or $2.52 per share, in the same quarter of the prior year. Annual earnings totalled $9.2 billion, or $7.81 per share, a decrease from $11.0 billion, or $9.06 per share, in 2023. Nevertheless, the company delivered solid operational results, returned $9.1 billion to shareholders, and strengthened its portfolio through the strategic acquisition of Marathon Oil. With a strong balance sheet that includes $6.4 billion in cash and short-term investments and $1.1 billion in long-term investments, the company’s stock has an expected price increase of 34.9%, which positions it among Phill Gross’ 10 stock picks that have huge upside potential.
Looking ahead to 2025, ConocoPhillips (NYSE:COP) is targeting shareholder returns of $10 billion, reaffirming its commitment to delivering consistent value through dividends and share repurchases. To that end, the company declared a first-quarter ordinary dividend of $0.78 per share. CEO Ryan Lance emphasized the company’s focus on a returns-driven strategy underpinned by operational efficiency and disciplined growth.
In a related development that underscores the value of ConocoPhillips (NYSE:COP)’s operated assets, Rising Phoenix Capital, a boutique investment firm focused on oil and gas mineral royalty acquisitions, announced a strategic acquisition of mineral interests in Ector and Midland Counties, Texas, within ConocoPhillips-operated acreage. This acquisition enhances Rising Phoenix Capital’s position in the basin, offering investors a low-risk opportunity for sustained monthly cash flow and long-term upside. The move reflects investor confidence in ConocoPhillips (NYSE:COP)’s operations and the long-term value of its core Permian assets.
Diamond Hill Large Cap Strategy stated the following regarding ConocoPhillips (NYSE:COP) in its Q2 2024 investor letter:
“Other bottom contributors in Q2 included CarMax, Target Corporation and ConocoPhillips (NYSE:COP). Shares of oil and gas exploration and production company ConocoPhillips declined against a backdrop of lower oil prices in Q2, as well as concerns about the expensive though strategically sound acquisition of Marathon Oil.”
Overall, COP ranks 10th on our list of unknown billionaire Phill Gross’ stock picks with huge upside potential. While we acknowledge the potential of these stock picks, 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 COP 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.
Disclosure: None. This article is originally published at Insider Monkey.
