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, has over $20 billion in 13F securities as of 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 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 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 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 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 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. in its fourth quarter 2025 investor letter:
“Brown-Forman and PepsiCo, Inc.’s 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.”
7. Etsy Inc (NYSE:ETSY)
Elliott’s Stake: $249,900,000
Etsy Inc (NYSE:ETSY) shares are likely to benefit from a long-term trend in consumer behavior. How? Younger generations are moving away from fast fashion and mass-produced items and prioritizing intentionality and emotional value. They prefer to buy small, meaningful gifts for no specific holiday. This trend could help Etsy because the company is focused on handmade, personalized, and niche products. Unlike Amazon where shoppers typically look for standardized, mass-produced goods like electronics or household items, Etsy is for things like custom gifts, engraved jewelry, and unique home décor.
Etsy Inc is using AI to fix a long-standing problem: product discovery. Instead of searching simple keywords like “necklace,” users can now describe what they need, such as a gift for a 45-year-old nurse who enjoys gardening and jewelry. The AI then builds user “personas” based on behavior and preferences.
Etsy Inc’s take rate is showing steady expansion, but what does that actually matter? The take rate shows how much of each transaction Etsy captures as revenue, and it has climbed to around 24%–25%, meaning roughly a quarter of every dollar spent on the platform flows to Etsy instead of just the seller. Etsy is not just growing by selling more goods—it is earning more from each transaction.
6. Hewlett Packard Enterprise Co (NYSE:HPE)
Elliott’s Stake: $652,911,510
Hewlett Packard Enterprise Co (NYSE:HPE) is set to benefit from the AI revolution because it is linked to the infrastructure layer that powers AI workloads. It builds AI-optimized servers, storage systems, and high-performance computing clusters, which are the physical machines used to train and run large AI models.
HPE’s core stack—compute (servers), storage (data systems), and high-speed networking—forms the backbone of AI infrastructure, and all of these components are seeing rising demand as companies scale GPU-heavy workloads and build larger AI clusters.
Another major growth catalyst for Hewlett Packard Enterprise Co is GreenLake, its hybrid cloud platform that delivers infrastructure on a consumption-based model. GreenLake has scaled to an annualized revenue run-rate approaching $3.5 billion (FY2026 guidance trajectory) and now serves around 50,000 customers, reflecting strong enterprise adoption. The reason this model is in demand is the key here: companies are shifting away from large upfront hardware purchases toward “as-a-service” infrastructure so they can scale computing resources.
Ariel Investments’ Global Fund stated the following regarding Hewlett Packard Enterprise Company in its Q4 2025 investor letter:
“We initiated a position in Hewlett Packard Enterprise Company, a global provider of enterprise hardware solutions including servers, networking and storage. The company recently completed its acquisition of Juniper Networks, strengthening its position in networking, a higher-margin business that improves HPE’s overall financial profile. Despite this strategic move, the stock has lagged due to cautious guidance and a history of inconsistent execution. However, we think upcoming product refreshes in servers, growth in AI-driven infrastructure and networking demand tied to data centers could serve as catalysts. Additionally, activist involvement in the name adds a layer of accountability and potential upside. In our view, HPE offers an attractive opportunity for investors willing to look beyond short-term sentiment and focus on long-term transformation.”
5. Pinterest Inc. (NYSE:PINS)
Elliott’s Stake: $513,520,000
Pinterest Inc. (NYSE:PINS) is down about 24% year-to-date, as several issues continue to weigh on sentiment, including slowing advertising demand, intensifying competition from larger platforms, and weaker ad pricing in its core market.
However, bulls argue the weakness is already reflected in the stock. Global monthly active users (MAUs) rose about 12% year-over-year in Q4 to 619 million. In its key United States and Canada (UCAN) segment, monetization is supported by higher ad value, with average revenue per user (ARPU) increasing 4.5%. Engagement remains strong, with the platform generating over 80 billion monthly searches and 1.7 billion outbound clicks, reinforcing its role in visual discovery and shopping intent.
From a valuation perspective, the stock looks attractive. It trades at a forward P/E of 11.6x, compared with a broader social media and tech peer group average closer to the low-to-mid 20s. Analysts expect a revenue CAGR of about 13% through FY2028, with improving earnings growth as cost discipline and operating leverage kick in.
Lakehouse Global Growth Fund stated the following regarding Pinterest, Inc. in its fourth quarter 2025 investor letter:
“Visual search and discovery platform, Pinterest, Inc. (NYSE:PINS), posted a solid quarterly result that was largely in line with expectations. Revenue grew 17% (16% constant currency) to $1.05 billion and adjusted EBITDA grew 24% to $306 million. Pleasingly, Pinterest’s revenue continues to be driven by a healthy mix of volume and price. The company’s monthly user count grew 12% to 600 million (the highest level of sequential growth in four years), while the firm’s average revenue per user increased 5% to $1.78. Pinterest also continues to make headway with its user shopping experience, and importantly monetising that experience, as the number of unique shopping SKUs with a paid ad impression more than doubled year-on-year.
Despite providing what we believed was a solid update, Pinterest’s stock sold off approximately 20% as management struck a cautious tone for 4Q guidance. Specifically, they noted they are seeing some “pockets of weakness” in North American ad spend as some of the largest retailers pulled back spend on tariff related margin pressure. In our view, these small “pockets of weakness” will prove to be temporary headwinds and we take comfort in management reiterating confidence in their mid-term targets – i.e. mid teens revenue growth and 30-34% EBITDA margins.
Big picture, we still view Pinterest as a differentiated, scaled platform with significant commercial intent that is well placed to capture incremental share of advertising budgets in the years ahead. Coupled with an attractive valuation of 14x earnings and over 12% of its market capitalisation in cash, we think the risk/reward is attractive.”
4. Southwest Airlines Co (NYSE:LUV)
Elliott’s Stake: $1,140,099,220
Airlines are reeling amid the Middle East conflict, with higher oil prices and softer demand hitting margins across the sector. But Southwest Airlines Co (NYSE:LUV) is taking clear steps toward recovery, which supports a longer-term buy case. The company has already moved on to pricing power. It increased bag fees by $10, which is expected to add about $1.16 billion in annual revenue (roughly +3.3%). This step would also support EBITDA.
Southwest Airlines Co is working to take out costs through variable cost reductions and efficiency measures, which is critical when fuel spikes compress margins. Fleet modernization is another support. Ongoing upgrades to more fuel-efficient Boeing 737 MAX aircraft provide incremental fuel savings and help offset part of the oil price impact over time. Despite near-term pressure, the financial base remains solid.
3. Suncor Energy Inc New (NYSE:SU)
Elliott’s Stake: $3,482,066,588
The turmoil in oil markets amid the Middle East conflict, years of underinvestment, and the removal of roughly 600–700 million barrels from global inventories has left Suncor Energy Inc New (NYSE:SU) in a strong position. Why? Because it operates one of the most reliable oil sands businesses, with proven reserves that can sustain production for more than 25 years at current levels. Its output is expected to grow steadily, unlike many global peers facing declining reserves. Suncor Energy Inc New is also financially solid.
Suncor Energy Inc New is returning significant cash to investors. It delivered over $5.8 billion to shareholders in 2025 through dividends and buybacks, and plans to continue repurchases at about $275 million per month. Its dividend yield is around 2.8%, and the payout is likely to increase if oil prices remain elevated.
Suncor Energy Inc New is aso expanding aggressively into the EV domain by leveraging its Petro-Canada network to build Canada’s Electric Highway, with a target of installing over 1,000 fast-chargers by late 2026 to capture the shifting consumer market. Carbon capture is another major catalyst for the stock because the demand for this technology is surging as global regulations tighten and industries face pressure to decarbonize. Suncor Energy Inc New is a founding member of the Oil Sands Alliance (formerly Pathways Alliance), which is developing a massive $16.5 billion carbon capture and storage (CCS) network in Alberta.
2. Phillips 66 (NYSE:PSX)
Elliott’s Stake: $2,484,149,040
The midstream business remains the core catalyst for Phillips 66 (NYSE:PSX), transitioning the company toward a high-margin, fee-based model that provides bond-like stability. Management is aggressively targeting $4.5 billion in annual midstream EBITDA by 2027, supported by the full integration of DCP Midstream and the expansion of the Coastal Bend NGL Pipeline to 350,000 barrels per day. This infrastructure ensures Phillips 66 (NYSE:PSX) earns steady revenue from moving natural gas liquids, regardless of volatile oil prices, which fuels consistent dividend growth and share buybacks.
The chemicals business is another key growth catalyst, specifically through the CPChem joint venture, which is currently launching massive projects like Golden Triangle Polymers and Ras Laffan to meet global demand for polyethylene.
Phillips 66 (NYSE:PSX) is also making a strategic play in the EV domain by becoming a leading producer of specialty needle coke. This highly refined material is a critical component for the synthetic graphite used in EV battery anodes, allowing Phillips 66 (NYSE:PSX) to profit directly from the battery supply chain and the global shift toward electrification.
Oakmark Select Fund stated the following regarding Phillips 66 (NYSE:PSX) in its Q1 2026 investor letter:
“Phillips 66 (NYSE:PSX) was the top contributor during the quarter. The U.S.-headquartered downstream energy company’s stock price rose as it benefited from higher crack spreads (the difference in price between crude oil and refined petroleum), heightened geopolitical risk and solid fourth-quarter 2025 earnings. Fundamental results have been encouraging, and we believe PSX is set to be a major beneficiary of rising crack spreads. We continue to see PSX as a durably advantaged energy company focused on returning cash flow to shareholders.”
1. Triple Flag Precious Metals Corp. (NYSE:TFPM)
Elliott’s Stake: $4,625,045,543
Triple Flag Precious Metals Corp. (NYSE:TFPM) thrives in the mining industry as it does not do drilling itself; it just finances projects and receives royalties or streams in return. While miners struggle with rising labor costs, high inflation, and the risky “hit or miss” nature of drilling, Triple Flag benefits from their exploration success without spending its own capital on the actual operations.
Instead of betting on one mine, it gives investor exposure to a portfolio of over 230 assets across safe locations like Australia and Canada, spreading the risk so that one bad project doesn’t sink Triple Flag Precious Metals Corp.. Some future catalysts include a major construction decision at the Hope Bay project expected in May 2026 and the potential for new acquisitions using their $1 billion in available cash.
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