In this article, we will look at Billionaire Israel Englander’s Top 10 Stock Picks Heading Into 2025.
Israel Englander has always inspired the investment world by founding and managing the second-most profitable hedge fund in history. The Brooklyn-born billionaire investor began his career on Wall Street in 1970. After gaining valuable experience in trading and investment management, he founded Millennium Management in 1989.
Millennium Management has become one of the world’s largest and most successful hedge funds, managing $210 billion in 13F securities as of Q3 2024. Innovative investment strategies and a focus on risk management are the tenets that have propelled the hedge fund to tremendous success. Since its inception, Englander’s hedge fund has averaged 14% in annual returns, solidifying its position in the highly competitive hedge fund landscape. The hedge fund has also racked up over $56 billion in cumulative profits for investors since its inception.
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Millennium Management had its best year in 2000, when the dot-com bust started, and the S&P 500 was down 10%. Thanks to its multi-strategy approach, it returned 35%, which consistently produces positive returns. As the CEO, Englander only had one down year, a 3% decline at the height of the financial crisis in 2008. The impressive performance stems from the billionaire investor focusing on unique investment strategies emphasizing diversification and risk management. Likewise, Englander advocates for a multi-strategy approach that makes it easy to capitalize on various market opportunities.
Millennium Management’s diversification strategy was highlighted when they sold tech stocks to invest in an index fund, emphasizing long-term growth and risk mitigation. Israel Englander remains focused on expanding the firm and leveraging technology to stay competitive.
In 2023, Israel Englander topped Bloomberg’s list of highest-earning hedge fund managers with $2.8 billion in net earnings. Millennium Management earned $600 million from commodities last year but lagged behind Citadel’s $8 billion in 2022. Bloomberg cited sources saying Millennium’s struggles are due to Englander’s tight control. Financial Times reported Millennium manages $60 billion in assets, employs 5,400 people, and has 17 offices. The fund returned 8.3% in 2023, 12.5% in 2022, 13.6% in 2021, and 25.9% in 2020.
Millennium Management was one of the hedge funds that benefited from the overall stock market rally, with the S&P 500 gaining 24% in 2024 due to optimism around artificial intelligence and interest rate cuts. The hedge fund also benefited from its exposure to many of the ‘Magnificent 7’ stocks, which were behind much of the actions in 2024.
After two straight years of annual gains, the focus in the equity markets is on stocks that can maintain the upward momentum in 2025. Billionaire Israel Englander’s top stock picks are well poised to benefit from a strong US economy. While the billionaire investor’s portfolio consists of tech stocks, it also consists of investment plays in healthcare, industrials and materials sectors. With that, let’s take a look at some of his top stock picks.
Israel Englander of Millennium Management
Our Methodology
We analyzed Millennium Management’s portfolio to make a list of billionaire Israel Englander’s top 10 stock picks heading into 2025. We then settled on Englander’s top ten holdings and analyzed them to determine why they stand out in generating long-term value. We then ranked these companies in ascending order based on the hedge fund’s stake value.
At Insider Monkey, we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Billionaire Israel Englander’s Top 10 Stock Picks Heading Into 2025
10. Alphabet Inc. (NASDAQ:GOOGL)
Millennium Management’s Stake Value: $458.07 Million
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) is an internet content and information company that offers products and platforms. It operates through Google Services, Google Cloud, and Other Bets segments. It is one of billionaire Israel Englander’s top stock picks as it has delivered excellent returns on tripling in value over the past five years. While the stock was up by 40.62% in 2024, it’s well-positioned to generate significant value in 2025.
Alphabet Inc. (NASDAQ:GOOGL) is heavily investing in AI to boost its search engine and advertising business, enhance YouTube user experience, and attract more ad campaigns. Although it trails Microsoft and Amazon in cloud services, Alphabet aims to close the gap by integrating AI into its cloud offerings. By Q3 2024, all products with over 2 billion monthly users used Gemini models. Alphabet is expanding Gemini to developers on platforms like GitHub Copilot, improving AI in search, adding AI features to new Chromebooks, and launching an AI tool to help consumers choose products.
In Q3, Google’s Cloud revenue was up 35% year over year, much higher than the 33% gain delivered by Microsoft Azure and 19% by Amazon Web Services. Alphabet Inc. (NASDAQ:GOOGL) stock will benefit more from Google Cloud’s continued expansion as it is beginning to demonstrate robust growth.
Additionally, the company is expanding its footprint into the burgeoning semiconductor sector. It has unveiled Willow, a quantum computing chip capable of performing standard benchmark computation. The new chip strengthens Alphabet’s position in an emerging tech field.
9. Wells Fargo & Co. (NYSE:WFC)
Millennium Management’s Stake Value: $535.42 Million
Number of Hedge Fund Holders: 72
Wells Fargo & Co. (NYSE:WFC) is a financial services company offering a wide range of banking, investment, mortgage, and consumer and commercial finance products and services. The company has approximately $1.9 trillion in assets. It was one of the best-performing banking stocks, rallying by about 44% in 2024. Likewise, it is one of billionaire Israel Englander’s top stock picks owing to the tremendous opportunities for growth.
In the first nine months of 2024, Wells Fargo & Company (NYSE:WFC) experienced a 9.6% decline in net interest income, primarily due to a 45% increase in interest expenses. The bank has been diversifying its revenue sources as it seeks to reduce its reliance on net interest income. Consequently, Wells Fargo has been strengthening its corporate investment bank unit in pursuit of new growth opportunities.
Wells Fargo & Co. (NYSE:WFC) prioritized serving its independent advisers and consumer banking customers, which should eventually spur development. It’s also focused on expanding its treasury management business and offering clients investment banking and market capabilities.
While Wells Fargo has operated under an asset cap imposed by regulators as a penalty over its fake accounts scandal, that cap could be removed soon. The cap has restricted the bank from growing its balance sheet, making it difficult to expand its loan basket and generate interest income.
Wells Fargo & Co. (NYSE:WFC) CEO Charlie Scharf has done a good job streamlining the bank’s regulatory framework, cutting costs, and concentrating on the bank’s core business. Scharf has also started to enhance higher-returning operations, such as investment banking and credit card lending, that the bank hasn’t fully utilized in the past.
8. Medtronic plc (NYSE:MDT)
Millennium Management’s Stake Value: $559.76 Million
Number of Hedge Fund Holders: 60
Medtronic plc (NYSE:MDT) is a healthcare company that develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. It offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices. While the stock was down by about 4% in 2024, it remains one of billionaire Israel Englander’s top stock picks.
It is one of the companies well poised to benefit from declining interest rates. This is because hospitals and businesses that purchase Medtronic plc’s (NYSE:MDT) devices can finance them more affordably as rates fall. That may contribute to a slight acceleration of its growth rate.
Medtronic has been growing, even though its single-digit growth may not give the impression that it is a growing company. It has also received about 130 product approvals in numerous important markets in the last 12 months alone. The company also has a wide range of products in its portfolio, including continuous glucose monitoring devices, neurostimulators, and catheters. It also regularly releases new devices.
In addition, the company maintains operations in more than 150 countries and is backed by products that treat over 70 health conditions. Consequently, Medtronic plc (NYSE:MDT) is well-positioned to grow and generate more shareholder value by bringing better and more efficient products to the market. Likewise, the company should continue to excite income-focused investors with its 3.20% dividend yield.
Matrix Asset Advisors stated the following regarding Medtronic plc (NYSE:MDT) in its Q3 2024 investor letter:
“In Q3, we added to two Healthcare positions, Medtronic plc (NYSE:MDT) and Becton Dickinson (BD). Both companies are very attractive in our valuation analysis. We started the LCV position in MDT in the second quarter and added to it as more cash became available. The company’s business results have improved this year as the number of medical procedures normalized from their decline during the pandemic. “
7. Apollo Global Management Inc. (NYSE:APO)
Millennium Management’s Stake Value: $604.53 Million
Number of Hedge Fund Holders: 82
Apollo Global Management Inc. (NYSE:APO) is a private equity firm specializing in investments in credit, private equity, infrastructure, and real estate markets. It was one of the best alternative asset management companies, rallying by 78% in 2024. The rally came on the company delivering impressive financial results as it expanded its reach and diversified its offerings.
Apollo Global Management Inc.’s (NYSE:APO) competitive edge as one of billionaire Israel Englander’s Top stock picks stems from its healthy revenue mix from asset amendment to annuity provision. While the company targets a 20% growth in earnings over the next five years, it achieved record fee-related earnings of $1.5 billion in its third quarter. The increase was driven by growth in its credit management sector.
Additionally, Apollo Global Management Inc. (NYSE:APO) is committed to preserving cost control going forward. Despite a significant increase in revenues, expenses increased by 11% in 2024. The company expects a robust origination pipeline and an organic capital formation target of $120 million for 2024 to support its continued revenue growth trends.
6. Meta Platforms Inc (NASDAQ:META)
Millennium Management’s Stake Value: $765.77 Million
Number of Hedge Fund Holders: 235
Meta Platforms Inc (NASDAQ:META) is a communication services company that offers products that help people connect and share with friends and family. As the parent company behind Facebook, Instagram, WhatsApp and Messenger, it’s a market leader in the social networking space. The stock outperformed the overall market, rallying by 72% in 2024.
The rally came as the social networking giant emerged as one of the companies benefiting from the artificial intelligence revolution. The tech giant is increasingly leveraging artificial intelligence to boost engagement and user experience in its networking apps. In return, it has successfully attracted advertisers looking to target its massive consumer base.
Meta Platforms Inc (NASDAQ:META) is already a major player in the AI boom, which makes sense given that it is a huge company with almost 3.3 billion daily active users across its various social media platforms. 500 million people use the company’s Meta AI assistant each month. Advertisers aiming to reach a captive audience will find this more appealing.
Because of AI, its family of apps, Facebook, Instagram, and WhatsApp, has grown to be an extremely valuable digital real estate for advertisers. Instagram’s shift from gallery-style, standalone photos to short-form, scrolling videos has revolutionized Meta’s profits and cash flow.
Revenues in the first nine months of 2024 were up by 22%. Profitability has also improved. In the third quarter of 2024, Meta Platforms Inc (NASDAQ:META) reported an impressive operating margin of 43%.
Hardman Johnston Global Equity stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q3 2024 investor letter:
“During the quarter, we initiated one new position in Meta Platforms, Inc. (NASDAQ:META) and had no liquidations. Management at Meta has effectively addressed concerns about investment efficiency by shifting resources from Reality Labs towards broader AI initiatives with a clearer path to profitability. We believe management has successfully articulated the benefits of this strategy, highlighting how AI is driving user engagement and advertiser productivity. This, in turn, fuels continued revenue momentum and increases the likelihood of positive earnings surprises in the future. Additionally, the parent company of the social media platform, Facebook, has recently taken positive steps to enhance safety, which suggests to us a shift towards a more proactive and responsive approach to addressing important potential challenges and concerns. Weak oversight over data privacy protection was a key reason why we sold the position in the portfolio back in 2021. Removing this governance overhang allows us to feel comfortable to enter back into the stock at a time when we believe it is poised for strong earnings growth going forward.”
5. Eli Lilly and Company (NYSE:LLY)
Millennium Management’s Stake Value: $877.27 Million
Number of Hedge Fund Holders: 106
Eli Lilly and Company (NYSE:LLY) is a healthcare company that discovers, develops, and markets human pharmaceuticals worldwide. It’s been a strong winner over the past few years due to the strong demand for diabetes and weight loss drugs. The stock was up by about 26% in 2024, emerging as one of billionaire Israel Englander’s top stock picks.
Eli Lilly and Company (NYSE:LLY) has experienced a remarkable surge, fueled by high demand for their medications, Mounjaro and Zepbound. Zepbound is approved to help obese or overweight adults with at least one weight-related condition lose weight. Mounjaro has also been approved to help adult patients with type 2 diabetes improve their blood glucose levels.
Wall Street is incredibly excited about the company’s long-term prospects as it is working on a GLP-1 weight loss pill. Eli Lilly and Company (NYSE:LLY) anticipates having information to share on a late-stage trial for orforglipron, an oral GLP-1 drug that has shown promise by April 2025. The once-daily pill has already posted solid results in helping overweight or obese people lose up to 14.7% of their body weight over a 36-week period.
In addition to weight loss pills, Eli Lilly and Company (NYSE:LLY) also boasts of a robust and diverse pipeline of drugs. It sells a number of lucrative drugs that are used to treat conditions like plaque psoriasis and cancer. The FDA also approved the company’s eczema and Alzheimer’s disease treatments this year.
4. Boston Scientific Corporation (NYSE:BSX)
Millennium Management’s Stake Value: $910.05 Million
Number of Hedge Fund Holders: 92
Boston Scientific Corporation (NYSE:BSX) is a healthcare company that develops, manufactures, and markets medical devices worldwide for use in various interventional medical specialties. It offers devices to diagnose and treat gastrointestinal and pulmonary conditions. The stock was up by about 56% in 2024, benefiting from impressive financial results that affirmed underlying growth.
Boston Scientific Corporation (NYSE:BSX) released better-than-expected third-quarter revenue and earnings at the end of October. Cardiovascular sales increased 25% to $2.73 billion, while total sales grew 18.2% organically. Boston Scientific’s other division, medical-surgical sales, generated $1.48 billion in revenue, an increase of 10.3%.
In contrast to its previous guidance of $2.38 to $2.42 per share, Boston Scientific increased its profit outlook for the year to an adjusted $2.45 to $2.47 per share, affirming expected growth. Additionally, Boston Scientific anticipates organic full-year sales growth of roughly 15%, which is higher than its prior range of 13% to 14% growth.
The impressive financial results and guidance are fueled by strong performance from key products like Farapulse. The products continue to capture market share from competing radiofrequency (RF) and cryoablation technologies. Additionally, Boston Scientific Corporation (NYSE:BSX) has moved to strengthen its prospects in sacral neuromodulation (SNM), a high-growth adjacency for its Urology business.
It has also completed the acquisition of Axonics, a medical technology company focused on developing and commercializing differentiated devices to treat urinary and bowel dysfunction. The acquisition is strategic, strengthening the company’s ability to offer clinically differentiated treatment options with well-established therapies in a high-growth adjacency.
3. Spotify Technology S.A. (NYSE:SPOT)
Millennium Management’s Stake Value: $1.03 Billion
Number of Hedge Fund Holders: 98
Spotify Technology S.A. (NYSE:SPOT) is a communication services company that provides audio streaming subscription services worldwide. It offers unlimited online and offline streaming access to its catalog of music and podcasts. It was one of the best-performing stocks, gaining 141% in 2024 and emerging as one of billionaire Israel Englander’s top stock picks in 2025.
After the blockbuster gain, one would wonder if there is still room for additional gains. Spotify remains well-positioned to continue edging higher. The upward momentum is being driven by strong underlying fundamentals, including record subscriber numbers of 640 million monthly active users. The numbers include 252 million premium members that pay a monthly subscription. Spotify Technology S.A. (NYSE:SPOT) is also enjoying strong revenue growth and surging profits. It logged $4.2 billion in revenue in the third quarter, which was up 19% year over year. Likewise, it generated a 361% increase in net income which amounted to $316 million.
Spotify’s competitive edge stems from its 31.7% market share in the global music streaming industry, well ahead of Tencent Music with 14.4% market share. Although the content catalogs of all music streaming services are similar, Spotify Technology S.A. (NYSE:SPOT) has set itself apart from the others through technological features, pricing, and the provision of additional content formats, such as podcasts.
Its recommendation engine, driven by artificial intelligence (AI), ensures that every user sees the content that is most pertinent to them. Additionally, AI is being used to develop novel features like AI DJ, which creates customized playlists and adds a voiceover produced by software for commentary while the music is playing.
2. NVIDIA Corp (NASDAQ:NVDA)
Millennium Management’s Stake Value: $1.35 Billion
Number of Hedge Fund Holders: 193
NVIDIA Corp (NASDAQ:NVDA) is a technology giant that is shaping the artificial intelligence race with its graphic processing units, or GPUs. Strong demand for chips for use in powering data centers and AI models was the catalyst that propelled the stock to all-time highs. While the stock was up by about 194% in 2024 and looks overvalued, it remains one of billionaire Israel Englander’s top stock picks in 2025.
NVIDIA Corp’s (NASDAQ:NVDA) prospects in 2025 lie in its new Blackwell graphics processing units. While the company has started shipping, demand remains insane, according to Chief Executive Officer Jensen Huang. Blackwell is expected to be the company’s most successful product ever, and it is expected to strengthen the company’s revenue base. Even with the launch of Blackwell, Hopper GPUs remain in strong demand, further strengthening the company’s revenue base.
With about $1 trillion worth of investments going to data centers, Nvidia should be the biggest beneficiary with its array of graphic processing units. Nvidia’s GPUs are the industry standard for accelerated computing, and no competitor seems likely to overtake the business anytime soon.
Manole Capital Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“As of this publication, Nvidia is up roughly 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year. It hit an eye-opening market capitalization of $3 trillion in June, less than four months after it eclipsed the $2 trillion mark. Enthusiasm for everything AI-related, especially for the primary chip maker whose products are essential to powering AI technology, continues to fuel the market. Last quarter, and for the fifth consecutive quarter, Nvidia reported sales and profits that blew past Wall Street expectations. The stock rose +37% in the second quarter alone.”
1. Microsoft Corporation (NASDAQ:MSFT)
Millennium Management’s Stake Value: $1.978 Billion
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a tech giant and a leading software, services and solutions developer. It is one of the billionaire Israel Englanders’ top stock picks owing to its role in the digital and artificial intelligence revolution. While the stock was up by about 15% in 2024, it underperformed the overall market, given that the S&P 500 was up by about 24%.
Nevertheless, Microsoft Corporation (NASDAQ:MSFT) is one of the stocks well poised to outperform in the long term as it continues to bet big on artificial intelligence. The company has already made about $14 billion in AI investments in OpenAI, consequently gaining access to key technologies that it can use to enhance its search engine, Bing and cloud computing unit Azure.
Given that the yearly revenue run rate for Microsoft’s AI business is predicted to surpass $10 billion in its fiscal 2025 second quarter, its success in monetizing these AI advancements is clear. Enterprise AI products from the company, primarily Copilots, have emerged as significant new sources of income.
Additionally, Microsoft Corporation (NASDAQ:MSFT) is a big player in the burgeoning cloud computing sector, with about 25% market share. In the first quarter of fiscal 2025, its revenues increased by a remarkable 33% year over year. With data centers spread across more than 60 countries and Azure OpenAI’s capabilities growing quickly, Microsoft is well-positioned for sustained growth.
RiverPark Large Growth Fund expects continued double-digit revenue and EPS growth for Microsoft Corporation (NASDAQ:MSFT) according to its Q3 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT): MSFT was a top detractor in the third quarter following a fiscal fourth quarter earnings report that featured inline operating metrics but mixed guidance. Positively, the company reported strong revenue (+15%) and earnings growth (+10%), powered by Azure (+30%), and operating margins of 43%. Guidance however calls for lower than expected fiscal first quarter Azure revenue as infrastructure constraints limit growth, and higher capital expenditures throughout the company’s fiscal 2025 to alleviate these constraints. The company expects growth to reaccelerate in the back half of fiscal 2025 as more AI capacity comes online.
Cloud-based services have become the company’s largest revenue and earnings producer. The company’s Azure platform alone has the potential to grow to more than $200 billion in annual revenue over the next decade. Overall, we believe that the company will continue to deliver double-digit revenue and EPS growth and generate an enormous amount of free cash flow to return to shareholders and use for acquisitions.”
While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than the ones mentioned on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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