In this article, we discuss billionaire Paul Singer’s top 12 long-term stock picks.
The world’s “most feared investor,” Paul Singer, needs no introduction. He has built a reputation on Wall Street for his aggressive and litigious tactics that often generate significant shareholder value. While the 79-year-old billionaire investor is not as flashy or public as other activist investors, he has built a reputation for exploiting weaknesses in various asset classes.
Singer’s initial approach to investing was to target companies and even governments while purchasing extremely distressed debt. Therefore, he is best known as a “vulture capitalist” as a result of this tactic. Since then, he has diversified into a number of investment strategies, such as activist investing, portfolio management, and commodity trading.
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Elliott Management is the investment firm that Singer founded in 1977 with $1.3 million. It has grown to become one of the most successful and feared activist hedge funds, with about $19 billion in portfolio value. The firm serves as the management affiliate for hedge funds Elliott Associates L.P and Elliott International Limited. The firm boasts of an annual average return of 14% since inception. Likewise, it has only lost money in the two years since its inception.
Elliott Associates is one of the most tracked hedge funds and it employs an activist investment strategy. It also acquires significant though minority stakes in underperforming and distressed companies or assets with a view of unlocking long-term value. In addition, the firm strives to influence company management through strategic initiatives such as cost cuts, management changes and business sales to maximize shareholder value.
Singer’s investment firm also purchased distressed sovereign debt from nations like Argentina and Peru in the 1990s. The investments resulted in multi-million dollar repayments following years of legal disputes. In 2016 Singer received a $2.4 billion payout after warring with Argentina’s government over bond payments. A 2018 article in The New Yorker magazine called him a “doomsday investor” for his strategies, including corporate debt plays in companies.
Paul Singer’s investment record speaks for itself. His hedge fund, Elliott Management, returned 5.9% in 2022 as the S&P 500 went down 19%. Nevertheless, the firm underperformed in 2023, turning 4.3% compared to a 24% gain for the S&P 500. The underperformance came as Singer remained cautious amid concerns that The US economy was staring at an “extraordinarily dangerous and confusing period”.
In addition to the high interest rates, the billionaire hedge fund manager raised concerns about the overstretched valuations and prospects of paltry returns in the real estate and financial services sector. Fast forward, the equity market has continued to edge higher in 2024. The S&P 500 is already up by more than 30%, with valuations in various counters getting out of hand.
Nevertheless, macroeconomics shows improvement following the Federal Reserve’s bid to cut interest rates and steer the economy into a soft landing. As the Co-Chief Executive Officer and Co-Chief Investment Officer of Elliott Management, Singer has diversified his holdings as one of the ways of shrugging heightened volatility.
Consequently, billionaire Paul Singer’s top 12 long-term stock picks are spread across the basic materials, services and utilities segments. There are also healthcare, energy, and financial services holdings. Let’s examine his top long-term stock picks in detail now.
Paul Singer of Elliott Management
Our Methodology
To make the list of billionaire Paul Singer’s top 12 long-term stock picks, we scanned Elliott Management’s investment portfolio. We then settled on stocks the hedge fund has held for two years and more. Finally, we ranked the stocks in ascending order based on Elliott Management’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 Paul Singer’s Top 12 Long-Term Stock Picks
12. Bausch Health Companies Inc. (NYSE:BHC)
Elliott Management’s Stake Value: $93,843
Elliott Management First Major Purchase: 2022
Number of Hedge Fund Holders: 30
Bausch Health Companies Inc. (NYSE:BHC) is a diversified specialty pharmaceutical and medical device company. While the stock has been flat for the year, the company continues to demonstrate strength across its key business segments.
Bausch Health Companies Inc. (NYSE:BHC) delivered a sixth consecutive quarter of year-over-year growth in revenue and earnings on October 30, 2024. Revenues in the third quarter were up 12% to $2.51 billion. Its adjusted EBITDA increased to $909 million, beating analysts’ estimates by 9%. The better-than-expected results underscore Bausch Health Companies’ operational efficiency and capacity to generate revenue growth and profitability.
In keeping with its solid financial results and confidence in its continued growth trajectory, Bausch Health Companies Inc. (NYSE:BHC) has also increased its full-year 2024 guidance. Strong results in the Salix and International segments and developments in strategic initiatives like the Red Sea program and AI-driven customer engagement are essential factors in this strong financial health.
Additionally, Bausch Health Companies Inc. (NYSE:BHC) is divesting its equity stake in Bausch+Lomb (BLCO), which is expected to unlock significant value and streamline operations. BHC declared in August 2020 that it would split the eye health division, which included the Bausch + Lomb global Vision Care, Surgical, and Pharmaceuticals divisions, into a separate publicly traded company called Bausch + Lomb and separate it from the rest of the business.
11. MicroStrategy Incorporated (NASDAQ:MSTR)
Elliott Management’s Stake Value: $6.86 Million
Elliott Management First Major Purchase: 2022
Number of Hedge Fund Holders: 25
MicroStrategy Incorporated (NASDAQ:MSTR) is a technology company that provides artificial intelligence-powered enterprise analytics software and services. The data mining and analytics company is also a big investor in Bitcoin. Consequently, its sentiments in the market have improved significantly following Bitcoin’s explosive run to $100K.
The stock’s value has exploded by over 2,500% over the past five years in response to Bitcoin’s soaring value. Likewise, it is one of billionaire Paul Singer’s long-term stock picks on the expectation that Bitcoin’s value will continue to rise. With MicroStrategy Incorporated (NASDAQ:MSTR) holding over 400,000 Bitcoins, its investment is worth over $40 billion. The company is also increasingly purchasing more Bitcoin, even holding 2% of the coins that will ever be in circulation.
Even though MicroStrategy Incorporated (NASDAQ:MSTR) has emerged as a pure Bitcoin investment play, it has also been trying to revitalize its software business. It is increasingly substituting its cloud-based subscription services for its desktop applications. The company is also increasingly releasing new generative AI tools for processing massive volumes of data. Analysts predict that its total revenue will increase at a compound annual rate of less than 1% between 2023 and 2026, despite falling by 1% in 2023.
10. Howmet Aerospace Inc. (NYSE:HWM)
Elliott Management’s Stake Value: $10.03 Million
Elliott Management First Major Purchase: 2020
Number of Hedge Fund Holders: 45
Howmet Aerospace Inc. (NYSE:HWM) provides advanced engineered solutions for aerospace and transportation industries, including airfoils and seamless rolled rings. It is one of billionaire Paul Singer’s top long-term stock picks, with a 110% year-to-date gain.
Howmet Aerospace Inc. (NYSE:HWM) has shown strong financial results, highlighting its solid growth. With adjusted earnings of $0.71 per share and revenue up 11% year over year to $1.84 billion, the company’s third-quarter earnings came above market forecasts. The company’s commercial aerospace division, which witnessed a 17% growth in revenue from the same period last year, provided a major boost.
Howmet Aerospace Inc.’s (NYSE:HWM) future growth is anticipated to be greatly aided by strategic partnerships with major industry players like GE Vernova, Siemens, Mitsubishi Heavy, and Ansaldo, as well as its leadership in the delivery of industrial gas turbine blades. Howmet Aerospace Inc. (NYSE:HWM) also remains well positioned to maintain double-digit growth in the Commercial Aerospace segment beyond 2025, owing to strong demand for spare parts in the aerospace space. With the substantial demand for more engine spare parts, the recent underproduction of aircraft has led to a huge order backlog supporting future revenue growth.
Fidelity Growth Strategies Fund stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q3 2024 investor letter:
“Lastly, an overweight in jet engine components maker Howmet Aerospace Inc. (NYSE:HWM) (+29%) contributed as well. In July, management announced that Q2 financial results exceeded expectations, with earnings surging by 52% due to robust demand for travel and an aging global aircraft fleet, which resulted in substantial backlogs for aircraft manufacturers. Consequently, management raised 2024 earnings and revenue guidance, hiked the company’s quarterly dividend by 60%, and increased its share-buyback program.”
9. CorMedix Inc. (NASDAQ:CRMD)
Elliott Management’s Stake Value: $12.53 Million
Elliott Management First Major Purchase: 2019
Number of Hedge Fund Holders: 6
CorMedix Inc. (NASDAQ:CRMD) is a biopharmaceutical company that develops and commercializes therapeutic products to prevent and treat infectious and inflammatory diseases. After rallying by 120% on signing a new commercial supply agreement for Defencath, its stock has more than doubled in value.
Defencath is the company’s lead antimicrobial catheter lock solution designed to reduce the incidence of catheter-related bloodstream infections in adult patients with kidney failure. Signing an agreement with a top-five mid-sized dialysis provider is serving as the catalyst for strengthening CorMedix Inc.’s (NASDAQ:CRMD) sentiment in the market. The deal allows the solution to be distributed across more than 200 outpatient dialysis clinics.
Given that the new Defencath agreement covers over 60% of patients receiving hemodialysis through a catheter at outpatient centres across the country, it opens up a reliable and stable revenue stream for CorMedix. As CorMedix Inc. (NASDAQ:CRMD) continues its commercialization strategy for Defencath, the new supply agreement is anticipated to strengthen its position in the market. This approach seeks to increase the product’s accessibility for patients in need while reaching a large portion of the target population.
The company is staring at tremendous opportunities as the US dialysis market is growing at a 6% compound annual growth rate. With the market projected to be worth $43 billion by 2032 from $27 billion in 2024, CorMedix can unlock significant value with Defencath that reduces incidences of blood infection during dialysis.
8. Confluent Inc (NASDAQ:CFLT)
Elliott Management’s Stake Value: $17.67 Million
Elliott Management First Major Purchase: 2022
Number of Hedge Fund Holders: 39
Confluent, Inc. (NASDAQ:CFLT) is a data streaming company. It offers a platform that allows people to connect their applications systems and services like Confluent Cloud to connect applications, systems, and data layers on the cloud. The stock has gained 38.51% year-to-date, driven by strong financial results.
In the third quarter, Confluent, Inc. (NASDAQ:CFLT) subscription revenue was up by 27% year-over-year to $240 million as cloud revenue increased 42%. The increase underlined strong demand for the company’s cloud solutions. As of Q3 2024, the company’s revenue growth is still strong, having increased by 25.01% over the previous 12 months to $915.61 million. Likewise, clients spending over $100,000 on the company’s solution increased by 14% to 1,346.
The significant client base growth comes on confluent boasting of a comprehensive product portfolio offering end-to-end data streaming and analytical data estate. In addition, Confluent, Inc. (NASDAQ:CFLT) made a big move when it acquired WarpStream, a bring-your-own-cloud data streaming company, to expand its product line and target open-source Kafka users and cloud clients in highly regulated settings.
7. RingCentral, Inc. (NYSE:RNG)
Elliott Management’s Stake Value: $36.50 Million
Elliott Management First Major Purchase: 2022
Number of Hedge Fund Holders: 32
RingCentral, Inc. (NYSE:RNG) offers cloud communications, video meetings, collaboration, and contact center software. Its main product, RingCentral Message Video Phone, unifies communication across different modes. The stock has risen 22.64% this year due to an expanding product lineup and new partnerships.
RingCentral, Inc. (NYSE:RNG) has inked new alliances with Vodafone and Cox Communications. The successful introduction of new products like RingCX and strategic partnerships demonstrate RingCentral’s continued dedication to expansion and innovation in the communications industry.
In addition, RingCentral, Inc. (NYSE:RNG) is also leveraging artificial intelligence to strengthen its product line, attracting more deals on the subscription front. The business unveiled new features for its AI-powered RingCX, such as sophisticated AI-based coaching insights for managers and supervisors and a real-time AI-powered assistant for agents and supervisors.
The strategic partnerships and innovations catalyzed RingCentral, Inc.’s (NYSE:RNG) solid third-quarter results on November 7, 2024. Revenue was $609 million, representing a 9% year-over-year increase. The increase came as subscription revenues increased 10%. RingCentral also increased its monthly average recurring revenue by 9% to $2.48 billion.
6. Rapid7, Inc. (NASDAQ:RPD)
Elliott Management’s Stake Value: $37.86 Million
Elliott Management First Major Purchase: 2022
Number of Hedge Fund Holders: 31
Rapid7, Inc. (NASDAQ:RPD) is a cybersecurity company that provides security analytics and automation solutions. It offers tools like the Rapid7 Insight Agent for cloud data collection.
According to Grand View Research, the global cybersecurity market was valued at $222.66 billion in 2023 and is expected to grow at 12.3% annually until 2030. This growth highlights the strong long-term prospects for cybersecurity companies. As companies seek to become tech heavyweights, they face rising cybersecurity risks. Consequently, most are ending at Rapid7, Inc. (NASDAQ:RPD) as they look to safeguard their networks and data. Strong demand was the catalyst behind Rapid7, which delivered an 8% revenue increase in Q3 of $214.7 million.
New product offerings are increasingly strengthening Rapid7, Inc.’s (NASDAQ:RPD) competitive edge in the cybersecurity and cloud computing spaces. Similarly, significant changes have been made to the company’s go-to-market (GTM) strategy in an effort to increase sales effectiveness and market penetration. These modifications imply that Rapid7 seeks to broaden its market reach and fortify its position against rivals.
5. Uniti Group Inc. (NASDAQ:UNIT)
Elliott Management’s Stake Value: $57.08 Million
Elliott Management First Major Purchase: 2017
Number of Hedge Fund Holders: 31
Uniti Group Inc. (NASDAQ:UNIT) operates as a real estate investment trust focused on acquiring and constructing mission-critical communication infrastructure. It is also a leading provider of fibre and other wireless solutions for the communication industry. While the stock is up by about 2.21% for the year, underperforming the overall market, it has had to navigate a challenging market environment.
The high interest rate environment has been unfavorable for the real estate sector. It has affected the number of deals companies can close owing to high mortgage rates and reduced consumer purchasing power. Nevertheless, Uniti Group Inc. (NASDAQ:UNIT) has remained resilient, going by the solid third-quarter results delivered on October 31, 2024.
Revenues in the quarter totaled $292 million, which was helped by a 3% growth in the strategic fibre business. Net income in the quarter totaled $11.9 million as AFFO attributable to shareholders came in at $87.1 million. The better-than-expected third-quarter results came as Uniti Group Inc. (NASDAQ:UNIT) continues to experience solid demand for its mission-critical fibre infrastructure with consolidated bookings of $1 million.
Uniti Group Inc. (NASDAQ:UNIT) is concentrating on increasing its fibre coverage and taking advantage of the expanding broadband market in light of the threefold increase in bookings from fibre-to-the-home carriers and the substantial demand from hyperscalers. The planned merger with Windstream is proceeding as planned and is expected to strengthen its position as a market leader in the fibre business.
4. Western Digital Corporation (NASDAQ:WDC)
Elliott Management’s Stake Value: $153.65 Million
Elliott Management First Major Purchase: 2022
Number of Hedge Fund Holders: 66
Western Digital Corporation (NASDAQ:WDC) is a tech company that makes and sells data storage devices. It turns out to be one of the long-term stock picks of billionaire Paul Singer. The stock is up by 28.39% for the year.
Robust demand for storage solutions from cloud customers and the artificial intelligence race are increasingly strengthening the company’s long-term prospects. The future can only be bright because hard disk drives account for 90% of data storage in public clouds. Western Digital Corporation (NASDAQ:WDC) enjoyed a 153% increase in cloud segment revenue in its fiscal first quarter of 2025. The growth came as the company experienced high demand and shipments for its HDDs and SSDs to data center customers.
The company’s competitive edge in the data storage business also stems from the growing demand for its UltraSMR technology. The technology is growing in popularity owing to its reliability and capacity compared to other storage solutions. In addition, Western Digital Corporation (NASDAQ:WDC) is in the process of spinning off its Flash business. The strategic move should allow the company to focus on its fast-growing hard disk drive business. The spinoff is also expected to provide clearer visibility into operations and enhance shareholder value.
Parnassus Mid Cap Fund stated the following regarding Western Digital Corporation (NASDAQ:WDC) in its Q2 2024 investor letter:
“We re-initiated a position in Western Digital Corporation (NASDAQ:WDC), a manufacturer of memory semiconductor chips and hard disk drives, as we believe earnings expectations are far too low. Semiconductors have been another of our most-alpha-generative industries, thanks to the industry’s secular tailwinds and our in-house expertise. Western Digital stands to benefit from the rapid growth of memory-hungry AI applications. The valuation for Western Digital was low relative to its peers, giving us a way to participate in AI at a reasonable valuation.”
3. Pinterest, Inc. (NYSE:PINS)
Elliott Management’s Stake Value: $906.36 Million
Elliott Management First Major Purchase: 2020
Number of Hedge Fund Holders: 66
Pinterest, Inc. (NYSE:PINS) is a communication services company that operates as a visual search and discovery platform. It offers a platform for finding ideas, such as recipes and home and style inspiration. The stock is down by about 16% in 2024 on investors reacting to soft guidance for its fourth quarter.
Amid the sell-off, it remains one of Paul Singer’s long-term stock picks, thanks to the robust underlying growth. Over the past 12 months, Pinterest, Inc. (NYSE:PINS) has achieved a 17.7% revenue growth and a robust 78.9% gross profit margin. Even though the company faces stiff competition from small and medium-sized businesses, its revenue base shows signs of growth.
Pinterest, Inc. (NYSE:PINS) saw an 18% increase in third-quarter sales which amounted to $763.2 million, thanks to a new advertising feature, Performance +. The company now has 537 million monthly active users, boosting its net income by 354% to $30.56 million. This growth confirms Pinterest as a top platform for brands and creators to showcase image-based content, driving significant advertising revenue.
The 354% increase in net income also comes from Pinterest, Inc. (NYSE:PINS) integrating artificial intelligence features into its platform. The features have enhanced the ad targeting algorithm, boosting user engagement and helping draw in more advertisers. Pinterest has also inked strategic partnerships with Alphabet’s Google advertising Manager Ecosystem and Amazon as part of its global expansion drive.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Pinterest, Inc. (NYSE:PINS) in its Q3 2024 investor letter:
“For the Communication Services sector, we generally prefer to invest in media and services companies that are either well placed from an advertising perspective with a target audience or provide differentiated services. Pinterest, Inc. (NYSE:PINS) is an image-based social media company. In late July, the company reported solid second-quarter results, though with softer than expected third quarter guidance. Revenues were up nicely, benefiting from an increase in monthly active users. Strength for the quarter was broad-based across several verticals including retail, technology, autos, and financial services. However, food and beverage vertical which has been soft since fourth quarter of 2023, down ticked further which resulted in softer than expected third quarter guidance. This caused Pinterest stock to slide by -7%.”
2. Suncor Energy Inc. (NYSE:SU)
Elliott Management’s Stake Value: $1.94 Billion
Elliott Management First Major Purchase: 2022
Number of Hedge Fund Holders: 47
Suncor Energy Inc. (NYSE:SU) is an integrated energy company that explores, develops, and produces bitumen, synthetic crude oil, and related products. The company generates revenues from crude oil, refining and gas station sales. Therefore, its competitive edge as one of Billionaire Paul Singer’s long-term stock picks stems from its ability to make money from every step in the oil and gas supply chain.
Suncor Energy Inc. (NYSE:SU) has over 7 billion barrels of oil, ensuring they can keep producing and earning money for a long time. They have made big improvements in reducing costs and working more efficiently. The company has used new technologies and simplified their processes to save money.
The company increased its production by 14% from September to about 284,000 barrels per day in October. Most of this production came from the Firebag site, which is very important for Suncor Energy Inc. (NYSE:SU). Firebag will help the company in the future, especially when one of their other oil sands mines closes next year and they lose 30% of their output.
With capital expenditures expected to stay below $6 billion through 2026, Suncor Energy Inc. (NYSE:SU) is on track to surpass its $3.3 billion incremental free funds flow target by that year. By 2026, the company hopes to achieve $10 per barrel improvements and anticipates free funds flow to surpass $6.3 billion. These recent developments demonstrate Suncor Energy’s dedication to operational effectiveness and shareholder value.
1. Triple Flag Precious Metals Corp. (NYSE:TFPM)
Elliott Management’s Stake Value: $2.17 Billion
Elliott Management First Major Purchase: 2022
Number of Hedge Fund Holders: 18
Triple Flag Precious Metals Corp. (NYSE:TFPM) is a basic materials company engaged in acquiring and managing precious metals, streams, royalties and other mineral interests. It is one of billionaire Paul Singer’s long-term stock picks, going by the 24% year-to-date gain.
The impressive performance comes from the basic materials company ramping up operations at projects such as Pumpkin Hollow and Beta Hunt. The push was the catalyst behind the company’s impressive third-quarter results on October 10, 2024. It logged a record revenue of $73.7 million on record quarterly metal sales of 29,773 gold ounces.
Triple Flag Precious Metals Corp. (NYSE:TFPM) is in a good position to keep increasing its market share thanks to another solid quarter of sales, which included sales from Northparkes, Cerro Lindo, and new streams with Allied Gold. The business is still on course to meet its 2024 gold sales target of 105,000 to 115,000 ounces.
Triple Flag Precious Metals Corp. (NYSE:TFPM) has also moved to strengthen its long-term prospects by acquiring 3% gold streams on Agbaou and Bonikro in Ivory Coast from Allied Gold Corporation. The acquisition should expand its exposure to more gold reserves as it looks to take advantage of the skyrocketing gold prices.
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