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Hedge Fund Manager Louis Bacon’s Top 12 Stock Picks

In this article, we discuss hedge fund manager Louis Bacon’s top 12 stock picks. You can skip our detailed analysis of Bacon’s hedge fund and its performance over the years and go directly to read Hedge Fund Manager Louis Bacon’s Top 5 Stock Picks

Louis Bacon earlier this year scored a big legal victory after a New York Judge awarded him $203 million in damages in a defamation case against Canadian fashion Mogul Peter Nygard. While the record award continues to make waves, the billionaire investor is also best known for his investing skills as one of the most revered hedge fund managers.

A graduate of Middlebury College in Virginia, Bacon is unlike most hedge fund managers, having studied English Literature. He launched his investment career after graduating in 1979 and working at brokerage firm Walter Franck during the summer. It was after graduating with a Master’s in Business Administration that Bacon would start trading commodities.

Bacon shone to prominence after setting up an investment firm in 1987 that would go on to profit from the infamous Black Monday market crash. The formation of Moore Capital Management in 1989 with a $25,000 inheritance would cement Bacon’s status as one of the most prominent hedge fund managers. The hedge fund stood out by generating a 17.6% annualized return through 2019, racking significant returns for the legendary investor and his clients.

Louis Bacon’s impressive returns stem from an investment strategy focused on diversifying investments across several securities and sectors. Moore Capital Management invests in cash, futures, and derivatives to analyze macro trends from inflation to central bank policies and economic growth.

While Bacon has stepped down from active hedge fund management, he still works with portfolio managers and research teams to analyze the markets and uncover ground-breaking opportunities. Likewise, hedge fund manager Louis Bacon’s top stock picks are in the technology sector.

His portfolio includes exposure to NVIDIA Corporation (NASDAQ:NVDA), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META). In addition, the hedge fund manager boasts significant exposure in the financial and services sectors with stakes in Ally Financial Inc. (NYSE:ALLY) and Capital One Financial Corporation (NYSE:COF).

In addition to investing in some of the biggest and fastest-growing companies, Bacon has also made a name for himself as a trader in the options markets. He leverages puts and call options to pursue high-risk market reward opportunities. In the options market, the legendary investor mainly focuses on exchange-traded funds, given their diversified portfolios.

Louis Bacon Moore of Moore Capital

For instance, Bacon has exposure to the iShares 7 to 10-year ETF  that seeks to track the investment results of an index that comprises US treasury bonds. While leveraging the Call option, the hedge fund manager tries to profit from the ETF price increasing over a defined period until expiry. Likewise, the strategy allows the hedge fund manager to benefit from rising treasury and bond prices.

Moore Capital Management has also taken a Put option on the Spdr S & P 500 ETF Trust (SPY) ETF. The investment signals that the hedge fund remains bearish on the S&P 500 as the ETF tries to mimic the results for the S&P 500.

Our Methodology

 We analyzed Moore Capital Management’s Q2 2023 filings and picked the fund’s top holdings.

Hedge Fund Manager Louis Bacon’s Top Stock Picks

12. Digital Realty Trust, Inc. (NYSE:DLR)

Moore Capital Management Q2 2023 Holdings: $59.85 Million

Number of Hedge Fund Holders: 29

Digital Realty Trust, Inc. (NYSE:DLR) is a stock to buy, according to billionaire Louis Bacon, to take advantage of the booming real estate sector. The company supports leading enterprises and service providers by offering a full spectrum of the data center, colocation, and interconnection solutions. Operating as a REIT, it serves over 300 data centers across 25 countries.

As one of the largest data center providers, some of its big customers include IBM, Oracle, Meta platforms, JPMorgan, and Verizon. A boom in artificial intelligence has triggered a strong demand for data centers to handle the troves of data used to enable AI innovation. A leading data center platform provider where companies’ technology and data come together, Digital Realty Trust, Inc. (NYSE:DLR) is well-positioned to benefit from the AI revolution.

At the end of the second quarter, our database included 29 hedge funds holding positions in Digital Realty Trust Inc (NYSE:DLR), as compared to 25 funds in the first quarter. The most substantial stakeholder in the company was Citadel Investment Group, possessing 4.61 million shares valued at $525.23 million.

11. ServiceNow, Inc. (NYSE:NOW)

Moore Capital Management Q2 2023 Holdings: $60.30 Million

Number of Hedge Fund Holders: 93

ServiceNow, Inc. (NYSE:NOW) is one of the stocks to buy, according to billionaire Louis Bacon, for anyone eyeing exposure in the technology sector. The company has carved a niche in providing enterprise cloud computing solutions that define structures, consolidating and automating enterprise services.

A push into AI software, with the company seeing “unprecedented demand” for its organic innovation, has strengthened ServiceNow, Inc. (NYSE:NOW) sentiments in the market. As the company sees significant productivity increases with generative AI solutions, it continues to deliver impressive results that affirm underlying growth.

For starters, ServiceNow, Inc. (NYSE:NOW) delivered a net profit of $1.04 billion in Q2  with EPS of $2.37, above the $2.05 that Wall Street expected. Revenue was up 23% to $2.15 billion.

In the second quarter, a total of 93 hedge funds held long positions in ServiceNow, Inc. (NYSE:NOW), collectively accounting for a stake valued at $3.9 billion. The largest stakeholder among them was Rajiv Jain’s GQG Partners, with a holding of 1.53 million shares worth approximately $859.46 million in the company.

10. Shoals Technologies Group, Inc. (NASDAQ:SHLS

Moore Capital Management Q2 2023 Holdings: $61.28 Million

Number of Hedge Fund Holders: 24

Amid the electric vehicle revolution and a push into clean energy, Bacon relies on Shoals Technologies Group, Inc. (NASDAQ:SHLS) for exposure in the market segment. The company is best known for providing an electrical balance of system solutions and components in solar, battery energy, and electric vehicle charging systems.

Shoals Technologies Group, Inc. (NASDAQ:SHLS) produces EBOS components, including cable assemblies, inline fuses, and wireless monitoring systems. The company streamlines the assembly and installation of large solar projects. Shoal Technologies has raised full-year revenue guidance to between $480 million and $510 million from a previous guidance of $470M and $510M. The increase affirms expected growth as it is above consensus estimates of $491.84 million.

In the second quarter of 2023, Insider Monkey’s database reveals that there were 24 hedge funds with a positive outlook on Shoals Technologies Group, Inc. (NASDAQ:SHLS). Notably, Todd J. Kantor’s Encompass Capital Advisors maintained the most substantial position in the company, holding approximately 4.1 million shares with an estimated value of around $104.95 million. This suggests a significant level of confidence from Encompass Capital Advisors in Shoals Technologies Group, Inc. (NASDAQ:SHLS) during that quarter.

9. Ally Financial Inc. (NYSE:ALLY)

Moore Capital Management Q2 2023 Holdings: $63.26 Million

Number of Hedge Fund Holders: 46

Based in Detroit, Michigan, Ally Financial Inc. (NYSE:ALLY) stands out as one of the stocks to buy, according to billionaire Louis Bacon, for exposure in the financial services sector.

The company offers various digital financial products and services. Ally Financial Inc. (NYSE:ALLY) primarily operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.

The financial services company has embarked on a restructuring drive to reinvigorate its fortune and better navigate inflation and high-interest rates. Consequently, it is trimming 5% of its workforce.

In the second quarter database from Insider Monkey, 46 hedge funds expressed a positive sentiment toward Ally Financial Inc. (NYSE:ALLY), a slight decrease from the 48 hedge funds in the previous quarter. Warren Buffett’s Berkshire Hathaway maintained the largest position in the company, holding 29 million shares valued at $783.3 million.

8. Teck Resources Ltd (USA) (NYSE:TCK)

Moore Capital Management Q2 2023 Holdings: $65.79 Million

Number of Hedge Fund Holders: 79

Teck Resources Ltd (USA) (NYSE:TCK) is one of hedge fund manager Louis Bacon’s top stock picks in the basic materials segment. The company offers solid exposure to some of the most sought-after industrial metals as it operates Steelmaking, Coal, Copper, Zinc, and Energy segments. Teck Resources Ltd (USA) (NYSE:TCK) also produces lead, silver molybdenum, and other specialty metals.

While Teck Resources Ltd (USA) (NYSE:TCK) is flat for the year, it is up by more than 300% over the past three years, affirming why it is one of the stocks to buy, according to billionaire Louis Bacon, for solid exposure in the mining industry. The outperformance stems from strong demand for industrial metals with the opening of the global economy.

During the second quarter of 2023, 79 out of the 910 hedge funds polled by Insider Monkey had held a stake in the company. Out of these, Eric W. Mandelblatt’s Soroban Capital Partners is Teck Resources Ltd (USA) (NYSE:TCK)’s largest investor. It owns 10.06 million shares that are worth $423.61 million.

7. Capital One Financial Corporation (NYSE:COF)

Moore Capital Management Q2 2023 Holdings: $66.37 Million

Number of Hedge Fund Holders: 51

Capital One Financial Corporation (NYSE: COF) is a financial services institution specializing in banking, credit cards, and loans.

While it has been a challenging year for finance stocks as high interest rates make it difficult to hold onto deposits, Capital One Financial Corporation (NYSE:COF) has steadied. As one of the largest credit card issuers, it remains well-positioned to benefit from a growing economy and increased consumer spending.

Early this year, legendary investor Warren Buffett placed a $945 million bet on the company, affirming why it is one of the best stocks to buy, according to billionaire Louis Bacon. Capital One Financial Corporation (NYSE:COF) is currently valued below its book value after a deep pullback, making it an ideal choice for value-focused investors.

In Q2 2023, among the 910 hedge funds surveyed by Insider Monkey, 51 had positions in Capital One Financial Corporation (NYSE:COF). The most significant stake in Capital One Financial Corporation (NYSE:COF) within our database is held by Natixis Global Asset Management’s

Harris Associates, possessing 19.09 million shares valued at $2.09 billion.

6. Workday, Inc. (NASDAQ:WDAY)

Moore Capital Management Q2 2023 Holdings: $82.53 Million

Number of Hedge Fund Holders: 71

Workday, Inc. (NASDAQ:WDAY) is another stock in Moore Capital Management’s portfolio for exposure in the burgeoning cloud computing sector. The company offers cloud applications that help customers plan, execute, analyze, and extend to other applications and environments. It provides a financial management application suite that enables users to maintain accounting information.

While Workday, Inc. (NASDAQ:WDAY) is up by about 35% year to date, it remains one of hedge fund manager Louis Bacon’s top stock picks owing to its long-term prospects. Its cloud applications are in high demand amid the digital revolution, allowing enterprises to manage resources across large and complex organizations. It posted a 16% increase in revenue in the most recent quarter, signaling underlying growth.

According to Insider Monkey’s research, Workday, Inc. (NASDAQ:WDAY) had 71 hedge funds as shareholders in Q2 2023. The biggest stakeholder was Viking Global, run by Andreas Halvorsen, with a stake of 3 million shares valued at $686 million.

Click to continue reading and see Hedge Fund Manager Louis Bacon’s Top 5 Stock Picks.

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Disclosure: None. Hedge Fund Manager Louis Bacon’s Top 12 Stock Picks is originally 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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Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

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

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


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