In this article, we discuss the top 15 long-term stock picks of billionaire Lee Cooperman.
Leon Cooperman is a highly respected figure in the investment world, known for his acumen, philanthropy, and candid commentary on markets and economics. As the founder of Omega Advisors, Cooperman built a reputation as one of Wall Street’s most successful hedge fund managers. Leon Cooperman was born in New York in 1943 to working-class immigrant parents. His father was a plumber, and his mother was a homemaker. Cooperman earned his undergraduate degree from Hunter College in 1964 and later pursued an MBA at Columbia Business School. Cooperman began his professional journey at Goldman Sachs, where he worked for 25 years.
He joined the firm as an analyst and rose through the ranks to lead the Asset Management division. His tenure at Goldman Sachs was marked by significant achievements, including his role in expanding the firm’s institutional investment management services. In 1991, Cooperman left Goldman Sachs to establish Omega Advisors, a hedge fund specializing in value-oriented investing. He built the firm on principles of thorough research, disciplined risk management, and a long-term investment horizon. Under his leadership, Omega Advisors delivered strong returns, earning a reputation as one of the most successful hedge funds in the industry.
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At its height, Omega Advisors managed approximately $10 billion in assets, attracting institutional investors and high-net-worth individuals. In 2018, when Cooperman transitioned the firm into a family office, Omega Advisors had around $3.6 billion in AUM. Over its 27 years as a hedge fund, Omega Advisors achieved annualized returns of approximately 12%, outperforming many of its peers and major indices during key periods. During bullish market cycles, Cooperman’s ability to identify undervalued stocks enabled the fund to outperform benchmarks like the S&P 500, which has an average historical return of around 10% annually. For instance, in the late 1990s and early 2000s, Cooperman’s investments in financials, industrials, and energy sectors delivered double-digit gains.
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For this article, we selected stocks by combing through the 13F portfolio of Omega Advisors at the end of the third quarter of 2024. Only the companies that have been in the 13F portfolio of the fund consistently for the past three years were selected. These stocks are also popular among other hedge funds. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Billionaire Lee Cooperman’s Top 15 Long-Term Stock Picks
15. SunOpta Inc. (NASDAQ:STKL)
Number of Hedge Fund Holders: 18
Omega Advisors’ Stake: $35 million
SunOpta Inc. (NASDAQ:STKL) is a multinational company focused on natural food, ingredient sourcing, organic food, and specialty foods. There are several key elements that position this company as an exceptional choice for investors. Firstly, promising financial growth is depicted in the report for the third quarter of 2024. For instance, gross profit increased 16.4% to $23.6 million compared to $20.3 million in the prior year period and adjusted earnings from continuing operations was $2.5 million compared to $0.5 million in the prior year period. In addition, adjusted EBITDA from continuing operations increased 12.6% to $21.5 million, compared to $19.1 million in the prior year period. Secondly, SunOpta announced the completion of a $26 million expansion at its Modesto facility. This project holds investment potential as it would increase the production of oat milk annually by more than 60%, demonstrating SunOpta’s commitment to plant-based beverage production. Another great project worth investing in is the expansion of Dream Oatmilk Barista in January 2025 to an additional 6,700 stores across North America through a partnership with a large coffee chain.
14. Arbor Realty Trust, Inc. (NYSE:ABR)
Number of Hedge Fund Holders: 16
Omega Advisors’ Stake: $38.3 million
Arbor Realty Trust, Inc. (NYSE:ABR) is a nationwide real estate investment trust and direct lender that provides loan origination and servicing for multifamily, senior housing, healthcare, and other diverse commercial real estate assets. There are multiple key drivers that make Arbor Realty Trust a great choice for investment. For instance, the company reported GAAP net income for the third quarter of 2024 of $0.31 and distributable earnings of $0.43 per diluted common share and declared cash dividend on common stock of $0.43 per share. This highlights the company’s commitment to returning value to shareholders, as distributable earnings match the dividend payout. Secondly, the company, in partnership with Chandan Economics, publishes industry-leading research reports focused on multifamily and single-family real estate investing. The latest reports, like Single-Family Rental Investment Trends and Affordable Housing Trends, offer valuable insights into market dynamics.
13. Motorola Solutions, Inc. (NYSE:MSI)
Number of Hedge Fund Holders: 48
Omega Advisors’ Stake: $44.9 million
Motorola Solutions, Inc. (NYSE:MSI) is a leader in mission-critical communications products, solutions & services for communities & businesses. The following factors make this company stand out as a prime investment opportunity. Firstly, the improved finances, as illustrated in the report for the third quarter of 2024, paint a promising picture. For instance, as illustrated in the report, the company paid $164 million in cash dividends, repurchased $31 million of common stock and incurred $57 million of capital expenditures. Operating cash flow was $759 million, compared to $714 million in the year-ago quarter, and free cash flow was $702 million, up from $649 million in the year-ago quarter. This shows that both the operating cash flow and free cash flow for the quarter increased primarily due to higher earnings in the current year, net of non-cash charges. Secondly, Motorola and Google Cloud announced to bring generative AI to Motorola phones, including the brand-new series of Razr smartphones, enhancing user experience. Moreover, Motorola has announced the opening of a Research and Development Centre in Ho Chi Minh City, Vietnam, to advance data analytics and AI-enabled technologies.
12. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Omega Advisors’ Stake: $45.5 million
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The first thing that makes this company stand out and worthy of investment is its financial growth, as illustrated in its report for the third quarter of 2024. For instance, operating income was $27.9 billion and increased 15%, net income was $22 billion and increased 10%, and diluted earnings per share was $2.95 and increased 10%. These figures portray the company’s strong operational efficiency and profitability. Secondly, the company introduced three leading platforms: Copilot, the Copilot stack, and a new category of Copilot devices that are purpose-built for the new AI era, including the Copilot+ PCs. These platforms reflect the company’s commitment to be at the forefront of AI innovation. Moreover, Microsoft Corp is also extending Copilot to specific industries, including healthcare. With DAX Copilot, more than 400 healthcare organizations are increasing physician productivity and reducing burnout.
11. MP Materials Corp. (NYSE:MP)
Number of Hedge Fund Holders: 27
Omega Advisors’ Stake: $61.2 million
MP Materials Corp. (NYSE:MP) produces specialty materials that are vital inputs for electrification and other advanced technologies. This company stands out as a prime investment opportunity due to multiple factors. Firstly, the improved financial growth, as illustrated in the report for the third quarter of 2024, shows a promising picture. For instance, the reported revenue increased 20% year-over-year to $62.9 million, and record Real Estate Owned (REO) production of 13,742 metric tons showed a 28% increase year-over-year. Also, sales volumes nearly tripled sequentially to 404 metric tons. Secondly, the company also received a $58.5 million award to advance its construction of America’s first fully integrated rare earth magnet manufacturing facility. This would help commence commercial production of precursor materials in the summer of 2024, with finished magnets anticipated by late 2025.
10. The Cigna Group (NYSE:CI)
Number of Hedge Fund Holders: 66
Omega Advisors’ Stake: $83.3 million
The Cigna Group (NYSE:CI) is a global company dedicated to improving health and wellness. The following factors make Cigna Group a compelling investment choice. Firstly, as illustrated in the report for the third quarter of 2024, the total revenues reported increased from 30% to $63.7 billion, and shareholders’ net income was $0.7 billion, or $2.63 per share. Also, the company’s adjusted income from operations for the third quarter of 2024 was $2.1 billion, or $7.51 per share, compared with $2 billion, or $6.77 per share, for the third quarter of 2023, reflecting strong contributions from Evernorth Health Services, particularly within Specialty and Care Services. Secondly, the company announced marketplace plans, keeping quality health care affordable and easily accessible to customers.
9. Fiserv, Inc. (NYSE:FI)
Number of Hedge Fund Holders: 71
Omega Advisors’ Stake: $86.2 million
Fiserv, Inc. (NYSE:FI) is a global technology leader that enables money movement for thousands of financial institutions, millions of people, and businesses. The following strengths make Fiserv a standout option for investors. Firstly, the company’s strong GAAP revenue performance and organic revenue growth illustrated in the third quarter of 2024 report. For instance, GAAP revenue reported for the company increased 7% to $15.21 billion in the first nine months of 2024 compared to the prior year period, with 10% growth in the Merchant Solutions segment and 5% growth in the Financial Solutions segment. Also, the company raised the 2024 organic revenue growth outlook from 16% to 17% and adjusted the EPS outlook from $8.73 to $8.80. Secondly, Fiserv enhanced its finance capacity with the acquisition of Payfare, enabling the company to deliver more comprehensive solutions to its clients. Moreover, the company launched Clover in Brazil, aiming to streamline operations, enhance challenges between systems, and manage multiple acquisitions.
8. Mirion Technologies, Inc. (NYSE:MIR)
Number of Hedge Fund Holders: 31
Omega Advisors’ Stake: $88.8 million
Mirion Technologies, Inc. (NYSE:MIR) is a global leader in radiation safety, science and medicine, with a diverse portfolio of products and services that protect people from the harmful effects of ionizing radiation. This company presents a promising opportunity for investment, backed by multiple factors. Firstly, according to the report of the third quarter of 2024, GAAP net loss per share for the third quarter was $0.07, compared to $0.06 in the third quarter of 2023, and adjusted earnings per share for the quarter was $0.08, compared to $0.05 in the same period last year. Also, Adjusted EBITDA was $45.7 million, a 17.8% increase from $38.8 million in the same period last year. This demonstrates that despite the slight net loss, a strong improvement in adjusted earnings per share was seen, which indicates better operational performance. Secondly, the company was awarded strategic contracts for Sizewell C’s new nuclear power station project in the UK, which would help the company contribute more to reliable energy solutions for the future and attract investors.
7. Ashland Inc. (NYSE:ASH)
Number of Hedge Fund Holders: 25
Omega Advisors’ Stake: $94.8 million
Ashland Inc. (NYSE:ASH) is a global additives and specialty ingredients company with a conscious mindset for sustainability. The following factors make Ashland a highly attractive investment. To begin with, the report for the fourth quarter of 2024 showed net income, including discontinued operations, of $6 million or $0.12 per diluted share. Adjusted EBITDA was $139 million, a 5% increase from the prior-year quarter, and cash flows provided by operating activities of $128 million, with an ongoing free cash flow of $112 million. This positive net income and free cash flows highlight the company’s ability to fund operations and reinvest or return value to shareholders. Secondly, the company has announced that it would sell its Avoca business to Mane. The transaction is expected to close in the calendar first quarter of 2025.
6. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Omega Advisors’ Stake: $107.8 million
Alphabet Inc. (NASDAQ:GOOGL) is a California-based technology company that owns and runs the internet search engine Google. The following strengths make Alphabet a standout option for investors. For instance, as illustrated in the third quarter report of 2024, consolidated Alphabet revenues increased 15%, or 16% in constant currency, year over year to $88.3 billion, reflecting strong momentum across the business. Also, total operating income increased by 34%, and operating margin percent expanded by 4.5 percentage points to 32%. Secondly, the company’s commitment to invest in AI infrastructure also holds great potential for investors. Alphabet announced a $3.3 billion investment to construct two new data centers in South Carolina. Moreover, the company has announced Gemini 2.0, a new AI model for the agentic era that puts Alphabet at the forefront of AI innovation.
5. Lithia Motors, Inc. (NYSE:LAD)
Number of Hedge Fund Holders: 43
Omega Advisors’ Stake: $132.2 million
Lithia Motors, Inc. (NYSE:LAD) is one of the largest automotive retailers in the United States. This company stands out as a prime investment opportunity due to multiple compelling factors. Firstly, the improved financial growth, as illustrated in the report for the third quarter of 2024, shows a promising picture. For instance, the company reported increased revenue of 11% to $9.2 billion from $8.3 billion in the third quarter of 2023. In addition, aftersales gross profit increased 6.3% on a same-store basis. Secondly, the company has announced the purchase of three stores from the Duval Motor Company in Jacksonville and Gainesville, Florida. These newly acquired Acura, Honda, and Subaru stores are projected to generate over $200 million in annualized revenue, which holds great potential for investors.
4. WillScot Holdings Corporation (NASDAQ:WSC)
Number of Hedge Fund Holders: 52
Omega Advisors’ Stake: $137.2 million
WillScot Holdings Corporation (NASDAQ:WSC) designs, delivers, and services onsite and on-demand space solutions in North America. There are multiple factors that make WillScot Holdings a golden opportunity to invest in. For instance, as per the reports of the third quarter of 2024, the generated adjusted free cash flow was $143 million at a 24% margin. In addition, the company generated 17% Return on Invested Capital over the last 12 months. The company also returned $276 million to shareholders by repurchasing 7.1 million shares, reducing the share count by 3.3%. This share repurchase reflects strong financial health and confidence in long-term value creation. Secondly, another strategic project that holds potential for investment is the acquisition of McGrath RentCorp for $3.8 billion, which would enhance its position as the North American leader in Turnkey Space Solutions.
3. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 29
Omega Advisors’ Stake: $203.2 million
Energy Transfer LP (NYSE:ET) provides energy services. The notable factor that makes Energy Transfer a great investment opportunity is the increase in distributable cash flow and adjusted EBITDA. For instance, as per the reports of the third quarter of 2024, adjusted EBITDA for the three months ended September 30, 2024, was $3.96 billion compared to $3.54 billion for the three months ended September 30, 2023. The distributable cash flow attributable to partners, as adjusted, for the three months ending September 30, 2024, was $1.99 billion, an increase of $4 million from the three months ending September 30, 2023. These figures demonstrate the company’s increased operational efficiency and its ability to support dividends. Moreover, the company has announced a new large-diameter pipeline known as the Hugh Brinson Pipeline, providing transportation capacity out of the Permian Basin to serve growing natural gas demand. Another project worth investing in is the development of a large-scale LNG export facility in Lake Charles, Louisiana, with a planned capacity of 16.5 million tonnes per annum.
2. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 91
Omega Advisors’ Stake: $208.9 million
Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. The first thing that makes this company stand out and worthy of investment is its financial growth, as illustrated in its report for the third quarter of 2024. For instance, the reported operating cash flow was $375 million and adjusted free cash flow was $336 million in the third quarter of 2024. In addition, the third quarter of 2024 operating profit of $372 million increased $121 million, or 48%, and the adjusted operating profit of $417 million increased $121 million, or 41%, compared to the third quarter of 2023. This exceptional performance was driven by demand for critical digital infrastructure products and services. Secondly, the company announced expansion of its North American manufacturing operations with a new facility in Pelzer, South Carolina. The Vertiv Pelzer facility adds 215,000 square feet of manufacturing space and is projected to create up to 300 additional skilled job opportunities at this location. Lastly, the recent technological partnership of Vertiv with Ballard Power Systems can be of interest for investors as this alliance aims to develop hydrogen-powered fuel cell solutions for backup power applications in data centers.
1. Mr. Cooper Group Inc. (NASDAQ:COOP)
Number of Hedge Fund Holders: 37
Omega Advisors’ Stake: $263.7 million
Mr. Cooper Group Inc. (NASDAQ:COOP) is the consumer brand for mortgage servicing and the origination operation of Mr. Cooper Group. The first thing that makes the company worth investing in is its commendable growth despite the rising interest rates. According to the report of the third quarter of 2024, the reported net income was $80 million, including another mark-to-market of $126 million, equivalent to ROCE (Return on Capital Employed) of 6.9% and operating ROTCE (Return on Tangible Common Equity) of 16.8%. Moreover, its servicing portfolio grew 32% year-on-year to $1,239 billion. Secondly, the company has completely acquired Flagstar’s Mortgage Operations, which shows the company’s ability to deliver full-service solutions to financial institutions and clients by the beginning of 2025. Lastly, the company is committed to integrating AI and machine learning in the mortgage industry to deliver top-notch services. For instance, the development of Pyro AI exemplifies this and underscores the focus on a digital-first strategy to drive future growth.
While we acknowledge the potential of Mr. Cooper Group Inc. (NASDAQ:COOP) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Mr. Cooper Group Inc. (NASDAQ:COOP) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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