We recently published a list of Billionaire Mason Morfit’s 10 Stock Picks with Highest Upside Potential. In this article, we are going to take a look at where The Walt Disney Company (NYSE:DIS) stands against Billionaire Mason Morfit’s other stock picks with highest upside potential.
Mason Morfit, the billionaire CEO of ValueAct Capital, runs one of Wall Street’s most respected activist hedge funds. Unlike funds that make headlines through hostile takeovers, ValueAct works quietly behind the scenes to unlock value with a significant record of successful investments. As a “soft activist,” the fund partners with company management to create reforms that help the business and its investors.
ValueAct was founded by Jeff Ubben in 2000, with Morfit taking over in 2020 as CEO. It has stuck to the fund’s disciplined style, promising “win-wins for our companies and our investors”. As of March 2021, with over $13 billion in assets under management, the company focuses on a small number of high-conviction investments, often holding positions for years to maximize returns.
ValueAct works by finding companies that markets don’t fully understand, undervalue, or that are changing in important ways. The company’s resolution stands out and goes well with today’s unpredictable market trends. With trade problems, higher tariffs, and regulatory pressure hurting investor confidence, especially in tech and entertainment, Morfit’s steady, fundamentals-based strategy sets it apart.
These strengths become even more relevant given the broader economic turbulence in recent years. Recent economic developments have stirred up changes all over the global markets. Donald Trump’s sweeping tariffs triggered sell-offs across media and tech stocks, forcing companies to delay IPOs, postpone products, and rethink their supply chains. Bloomberg reported that entertainment companies’ stocks fell regardless of their actual trade exposure, as recession fears increased. In such an unsteady and unpredictable environment, spotting real opportunities has become harder but more crucial.
Considering these conditions, Morfit’s picks stand out because they blend resilience, innovation, and structural advantages that position these companies to succeed when markets stabilize. The combination of AI, digital transformation, and platform business models creates opportunities across industries, despite economic headwinds. By focusing on efficiency, margins, and long-term growth trends, ValueAct can invest with patience – a real advantage in today’s reactionary market.
Methodology
For this article, we analyzed Greenlight Capital’s Q4 2024 13F filings to identify Billionaire Mason Morfit’s 10 Stock Picks with the Highest Upside Potential. We then ranked the stocks in ascending order based on their estimated upside. These stocks are popular with elite hedge funds, which have been considered as well.
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).
A packed theater of moviegoers watching a blockbuster film produced by the entertainment company.
The Walt Disney Company (NYSE:DIS)
Potential Upside: 21.35%
Number of Hedge Fund Holders: 108
The Walt Disney Company (NYSE:DIS) is an entertainment giant that owns flagship platforms like Disney+, Hulu, ESPN, Marvel, and Pixar. The company operates across multiple sectors, including entertainment, sports, and experiences. It also runs theme parks, produces movies, and licenses its characters for toys and other merchandise globally.
The company’s financials appear strong with a 7% year-over-year increase in revenue to $23.6 billion in Q2 2025. This was largely driven by the strong performance of its Entertainment and Experiences segments. Furthermore, its income before taxes shot up by $2.4 billion to reach $3.1 billion. The Walt Disney Company (NYSE:DIS) picked up 2.5 million new subscribers across Disney+ and Hulu, while its US theme parks saw profits rise by 13%.
A turning point for the Walt Disney Company (NYSE:DIS) was the news of its new venture in Abu Dhabi. Disney is teaming up with Miral to build a massive theme park and resort, which is expected to attract visitors from around the world. Looking ahead, it expects its adjusted earnings per share to rise 16% for the rest of fiscal 2025. The company predicts double-digit growth in Entertainment, 18% in Sports, and 6-8% in Experiences.
Between the Abu Dhabi resort and expanding its streaming platforms, the Walt Disney Company (NYSE:DIS) is all set for the future. Its diverse revenue sources and global reach keep it at the top of the entertainment world. Mason Morfit has taken note of this—Disney now makes up about 16.7% of his stock portfolio, with stakes valued at $731.1 million, reflecting strong investor confidence in the company.
Overall, DIS ranks 4th on our list of Billionaire Mason Morfit’s stock picks with highest upside potential. While we acknowledge the potential of DIS, our conviction lies in the belief that certain 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 DIS 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.
