In this article, we examine the Stocks that David Abrams’ Hedge Fund is Betting On.
The US equity market remains on edge as the global geopolitical environment remains uncertain. A bounce back amid expectations that the US and Iran would reach an agreement in Pakistan to end hostilities appears short-lived.
Morgan Stanley strategists have already downgraded global equities and upgraded cash and the US government on growing concerns about the geopolitical stalemate in the Middle East.
Morgan Stanley strategists stated in a note that uncertainty around the magnitude and duration of oil supply disruption has made outcomes for risk assets increasingly asymmetrical.
Amid the downgrade, Morgan Stanley prefers US stocks over other regions, given prospects for higher earnings-per-share growth. Capital flows to US equities have overtaken the rest of the world since the Middle East conflict began. Capital inflow increase comes as investors look at US assets as a more defensive market gain.
On the other hand, strategists at JPMorgan Asset Management insist that investors should brace themselves for more dramatic market swings. That’s because markets are poised to be extremely sensitive to headlines, both positive and negative.
“Now is still a good time to be taking risk. But realize it is going to be a choppy, bumpy ride over the course of this year,” said Jack Manley, global market strategist at JPMorgan Asset Management.
Six of the market’s 10 best days in the last two decades occurred within two weeks of the 10 worst days. According to JPMorgan Asset Management, investors who stay fully invested stand to earn the best returns.
“In any given year, you might have a bad year being a U.S. stock investor,” Manley said. “But over the long run, history has shown very clearly that U.S. equities are a great place to generate wealth.”
David Abram’s Abrams Capital Management is one hedge fund that offers exposure to top US investment opportunities. With an equity portfolio of $5.67 billion, the hedge fund reflects an extremely concentrated, high-conviction value-investing strategy. The hedge fund relies on a longstanding portfolio of deep fundamental research and long-term capital deployment.
With that in mind let’s take a look at billionaire David Abrams’ 8 best stock picks.
David Abrams of Abrams Capital Management
Our Methodology
To compile our list of billionaire David Abrams’ 8 best stock picks, we analyzed the billionaire’s Abrams Capital Management entire equity portfolio in Insider Monkey’s database as of Q4 2025. We then compiled an initial list of 13 companies that have recently had significant announcements or news events around them. From this pool, we identified 8 stocks that are popular with other elite hedge funds in Q4 2025. The final list is ranked the stocks in ascending order by the value of Abrams Capital Management’s stake in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
David Abrams’ Hedge Fund Is Betting On These Stocks
8. Nuvation Bio Inc (NYSE:NUVB)
Abrams Capital Management Equity Stake: $34.15 Million
Number of Hedge Fund Holders: 40
Nuvation Bio Inc (NYSE:NUVB) is one of the best stock picks of billionaire David Abrams. Nuvation Bio Inc (NYSE:NUVB) is also a favorite on the Street. The stock carries a Strong Buy rating with an average price target of $11.93, which indicates more than 160% upside.
On April 8, Truist Securities restated its Buy rating on Nuvation Bio Inc (NYSE:NUVB) with a price target of $12. This action followed the firm’s meetings with Nuvation Bio’s management. The meeting covered a variety of topics, including the launch of the company’s Ibtrozi drug and its safusidenib drug candidate.
Ibtrozi is an FDA-approved treatment for lung cancer, while safusidenib is being developed to treat gliomas and other solid tumors. Truist noted that the Ibtrozi launch has had a bright start, pointing out potential to add around 200 points per quarter in the short-term. Moreover, the firm noted potential to expand the drug’s market penetration with additional testing.
Regarding safusidenib, Truist said it remained constructive on the candidate’s long-term potential in glioma. Truist projects Ibtrozi global sales to hit $986 million in fiscal year 2035, and safusidenib sales to reach $800 million the same year. Truist provided these sales estimates after Nuvation Bio announced on April 1 that it had secured development and commercialization rights to safusidenib in Japan.
Nuvation Bio is seeking Ibtrozi (taletrectinib) approval in Europe, and it has got positive signals toward this goal. The company said in March that the EU had validated its marketing approval application for taletrectinib as a treatment for lung cancer.
Nuvation Bio Inc (NYSE:NUVB) is an American biopharmaceutical company. It focuses on developing treatments for cancer, particularly looking to offer treatment solutions for difficult cancers. Founded in 2018, Nuvation Bio is based in New York.
7. Meta Platforms Inc (NASDAQ:META)
Abrams Capital Management Equity Stake: $214.63 Million
Number of Hedge Fund Holders: 256
Meta Platforms Inc (NASDAQ:META) is one of billionaire David Abrams’ best stock picks. Meta Platforms Inc (NASDAQ:META) is also a Wall Street favorite. The stock carries a consensus Strong Buy rating with a price target of $847.70, which suggests around 35% upside potential.
On April 9, Piper Sandler reaffirmed its Overweight rating on Meta Platforms Inc (NASDAQ:META) with a price target of $880. The firm restated its bullish view on Meta Platforms after the company launched its Muse Spark AI model. Muse Spark was released on April 8.
Meta has lagged behind the likes of OpenAI, Anthropic, and Google in the AI models space. So Piper Sandler sees the release of Muse Spark as a substantive progress in Meta’s efforts to offer a competitive product.
According to a New York Times report on April 8, Muse Spark performed far much better than Meta’s previous AI models in writing and reasoning tests. The report further said that Muse Spark was nearly as good as leading rival models from OpenAI, Google, and Anthropic.
While Meta may be late to the AI models game, Citizens analyst Andrew Boone said the company has a clear advantage given its massive social media user base. More than 3 billion people use Meta’s portfolio of social media platforms, including Facebook and WhatsApp. Boone sees Muse Spark expanding Meta’s opportunity in the advertising business.
Meta gets 98% of its revenue from advertising. Morningstar analyst Malik Ahmed Khan noted in an interview with CNBC that AI tools could bolster Meta’s ad business if they improve engagement and targeting.
Meta Platforms Inc (NASDAQ:META) is an American tech company that operates a portfolio of social media platforms. In addition to its flagship platform Facebook, Meta also owns Instagram and WhatsApp. Meta platforms reach billions of users globally.
6. Willis Towers Watson PLC (NASDAQ:WTW)
Abrams Capital Management Equity Stake: $236.85 Million
Number of Hedge Fund Holders: 37
Willis Towers Watson PLC (NASDAQ:WTW) is one of billionaire David Abrams’ best stock picks. Wall Street also recommends Willis Towers Watson PLC (NASDAQ:WTW). The stock has a consensus Buy rating and an average price target of $358.08, which indicates nearly 30% upside.
On April 9, Cantor Fitzgerald cut its price target on Willis Towers Watson PLC (NASDAQ:WTW) while reaffirming a Neutral rating on the stock. Cantor lowered the price target to $345 from $363 on reduced earnings expectations for the company.
The firm now expects Willis Towers Watson to deliver Q1 2026 EPS of $3.59, down from $3.68 previously. It also slashed its 2027 operating EPS estimate to $22.18 from $22.67. Cantor made these reductions on account of higher corporate expenses. The firm also mentioned potential AI pressure on the company’s consulting business.
On the same day that Cantor Fitzgerald lowered its estimates on Willis Towers Watson, the company announced the launch of a new insurance offering. Willis Towers Watson unveiled an insurance package targeting data center owners and operators.
This package can provide coverage for data centers during construction and operations phases. The company notes that the rapid pace of data center development has created unusual complexities that make traditional insurance insufficient.
As Willis Towers Watson broadens its insurance offering with the data center coverage, the company is also shoring up its investment arm. So far in 2026, the company has completed two strategic acquisitions. On April 1, it announced the closing of the acquisition of FlowStone Partners. Willis Towers Watson said FlowStone brings new private market solutions, and that this acquisition will expand its ability to give clients better access to private equity.
Back in January, Willis Towers Watson completed the acquisition of Newfront, a brokerage with elite expertise and cutting-edge technology. Willis Towers Watson counts on Newfront to expand its US middle market capabilities and bolster its standing in high-growth sectors such as fintech and life sciences.
Willis Towers Watson PLC (NASDAQ:WTW) operates as an advisory, broking, and solutions provider. Its services span areas such as risk management consulting, insurance brokerage, and human capital management. It also offers investment advice to pension funds and other institutional investors. The company is based in London, UK.
While we acknowledge the potential of WTW 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 WTW and that has 100x upside potential, check out our report about the cheapest AI stock.
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