In this article, we will discuss the Top 10 Stock Picks of Billionaire Paul Singer.
Billionaire Paul Singer is one of Wall Street’s most notable activist investors, known for taking stakes in underperforming companies and pushing for turnarounds to unlock shareholder value. His hedge fund, Elliott Investment Management, managed more than $20 billion in 13F securities at the end of the first quarter.
Elliott’s assets under management have risen dramatically over the past few years, reaching $78 billion as of November, making it one of the world’s largest hedge funds. The firm’s growing size has weighed on returns, leading Elliott to tell investors in a shareholder letter last year that it would consider shrinking its asset base if it determines that scale is hurting performance, according to a Financial Times report. Elliott returned 4.7% net of fees in the first nine months of 2025, compared with a 15% gain for the S&P 500, FT said.
In an interview in February last year, Singer warned about rising AI valuations and said that investors and governments are tacitly assuming that there won’t be a major bear market. This mindset, the billionaire warned, is a mistake. He thinks government stimulus programs and low interest rates have created alarming deficits, which could bite the economy. Singer said at the time that the state of the stock market was “as risky as I’ve ever seen.”
“Valuations, this AI is way over its skis in terms of practical value being brought to users,” Singer said. “There are uses and there will be additional uses but it’s way exaggerated.”
For this article, we scanned Elliott’s Q1 portfolio and picked its top holdings. 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).
10. Seadrill Ltd (NYSE:SDRL)
Elliott’s Stake: $214,718,368
Offshore drilling contractor Seadrill Ltd (NYSE:SDRL) is up 32% so far this year amid improving sentiment toward offshore energy as oil prices firm and contract activity picks up—but can the stock move higher?
The offshore drilling industry is entering an early upturn cycle supported by an increase in deepwater project approvals after years of underinvestment and a tightening supply of modern rigs, which is starting to push dayrates higher. Offshore projects are long-cycle by nature and can last several years. This makes demand more stable once contracts are awarded.
Regions such as Brazil, Guyana and West Africa continue to drive deepwater activity, where Seadrill Ltd (NYSE:SDRL) is well positioned. One of the company’s main strengths is its fleet of modern, high-spec drillships, which are in greater demand as operators focus on complex wells. Seadrill Ltd (NYSE:SDRL) also has a backlog of roughly $2.5 billion, providing multi-year revenue visibility and potential upside as older contracts roll off and are repriced at higher rates.
Patient Opportunity Equity Strategy stated the following regarding Seadrill Limited (NYSE:SDRL) in its Q1 2026 investor letter:
“Noble Corporation plc (NE) and Seadrill Limited (NYSE:SDRL) were top contributors during the first quarter, gaining 75.8% and 31.5%, respectively. Both stocks benefited …… (read the full letter here)
9. Norwegian Cruise Line Holdings (NYSE: NCLH)
Elliott’s Stake: $246,578,200
Norwegian Cruise Line is a new addition in billionaire Singer’s portfolio. NCLH bulls believe the stock has more upside despite broader concerns about fuel prices, inflation, and geopolitical tensions. The stock trades at roughly 9x EV/EBITDA and less than 10x forward earnings, while peers such as Royal Caribbean Group and Carnival Corporation have higher valuations.
The broader cruise demand remains strong across the industry, with bookings holding up well and occupancy expected to exceed 104% in 2026. NCLH’s luxury brands, Regent Seven Seas and Oceania, continue to see healthy demand.
Growing concerns about debt load have been bugging investors, but most of that debt does not mature until 2030, giving management several years to improve cash flow and reduce leverage. Capital spending is expected to decline significantly after 2027, potentially allowing NCLH to direct nearly $1 billion annually toward debt reduction.
Elliott Investment Management has pushed for operational improvements, board changes, and a more disciplined financial strategy. These efforts, combined with new CEO John Chidsey’s turnaround plan, could help restore investor confidence.
8. Pepsico Inc (NASDAQ:PEP)
Elliott’s Stake: $197,994,750
Pepsico (NASDAQ:PEP) recent quarterly results showed its turnaround plan is working. The company delivered a strong quarter with revenue and EPS beating expectations, supported by organic growth and margin expansion. International markets helped offset prior weakness in North America, where volumes are now beginning to stabilize and recover.
The stock trades at roughly 18x forward earnings, which is relatively reasonable for a defensive consumer name. It has a dividend yield of 3.5% track record of dividend increases for over 50 years.
Pepsico Inc (NASDAQ:PEP) is insulating itself from the global decline in sugary sodas by pivoting toward functional hydration and clean labels. Through brands like Bubly, which offers zero-sweetener sparkling water, and Propel, a zero-sugar electrolyte water, Pepsico Inc (NASDAQ:PEP) captures health-conscious consumers who are abandoning traditional carbonated drinks. Its strategic stake and distribution deal with Celsius secures a dominant position in the market targetted at fitness-oriented demographics.
The company expects organic revenue growth in the range of 2% to 4% for the full year, while core constant currency EPS is forecast to be up 4% and 6%. The midpoints of the organic revenue and EPS guidance were ahead of the consensus expectations.
Fundsmith Equity Fund stated the following regarding PepsiCo, Inc. (NASDAQ:PEP) in its fourth quarter 2025 investor letter:
“Brown-Forman and PepsiCo, Inc.’s (NASDAQ:PEP) snack business seem to us to be directly in the crosshairs of the impact of reduced appetites from weight loss drugs. Whether or not our Novo Nordisk investment finally comes good, we believe that weight loss drugs and their impact are here to stay. In addition, the alcoholic drinks business faces headwinds from the impact of Generation Z’s drinking habits (lack of) and the legalisation of cannabis.”
