This article will discuss billionaire Stephen Mandel’s 10 stocks with huge upside potential.
With economic policy and trade tensions fueling volatility, investors are moving through one of the most unpredictable markets in recent times. The Federal Reserve has taken a wait-and-see stand and maintains elevated interest rates to control inflation. In a CNBC report, the Fed commented that a rate cut could happen as early as June if economic conditions declined further. Such monetary easing would make the stock prices go up, with some companies even outperforming their peers in the market.
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The possibility of falling rates is a big deal for investors. Lower interest rates have often led to higher equity valuations, making borrowing cheaper and compressing discount rates applied to future earnings. Various stocks, irrespective of their sector, have historically shown strong rebounds during previous periods of rate cuts. Seasoned investors like billionaire Chase Coleman have also observed similar patterns. Leading the charge among them is growth stocks.
In addition to the renewed trade conflicts under President Trump’s tariff policies, the looming uncertainties are thickening with inflation getting closer to the Federal Reserve’s 2% target. Under these circumstances, having understood the potential of a confirmed pivot from the Fed on loosening the monetary policy, the investors are keeping a close watch on their moves since it would also inevitably benefit stocks with substantial upside potential.
But isn’t betting on short-term moves risky? Of course, it is. However, as reported on CNBC, the market indices suffered a sharp 12% correction earlier this month but staged a quick comeback. Those who panicked and sold at the lows are now regretting their decisions. This episode raises the importance of maintaining discipline and a long-term view when making investment decisions.
Setting aside the turbulence, historical data could be used to understand the importance of equities in wealth accumulation. Between 1926 and 2024, the U.S. stocks surpassed the Treasury bills by providing an annual return of 10.2%, which exceeded the Treasury’s 3.3%. To benefit from such an edge, the investors must endure through volatility and understand that 10% to 20% declines are part of the game.
In this economic landscape, investors should follow the billionaire investors. Using their knowledge about the market and companies and by conducting extensive research, some billionaire investors like Andreas Halvorsen have made investment decisions, stuck to them, and benefited immensely. Similarly, with his strategically positioned portfolios, one of the most prominent billionaire investors, philanthropists, and the founder of Lone Pine Capital, Stephen Mandel, guides other investors to capture outsized returns without reacting impulsively to market noise.
In this regard, growth stocks remain an attractive investment even during this current period of uncertainty. To those who want to refine their portfolio, the stocks that have managed to gain the attention of billionaire Stephen Mandel present great potential. To help you pick the best out of the best, we have compiled a list of 10 stocks from billionaire Stephen Mandel’s portfolio and ranked them, too.
Let’s count down from 10 to 1, our top Stephen Mandel’s picks with huge upside potential. Our top 5 may already be in your portfolio.
Stephen Mandel of Lone Pine Capital
Our Methodology
Several criteria have been employed when compiling our list of billionaire Stephen Mandel’s 10 stocks with huge upside potential. All the stocks in our list are primarily part of Stephen Mandel’s Lone Pine Capital private equity firm’s portfolio. Following this crucial criterion, we looked for stocks with a high percentage holding in the portfolio. It is to ensure that the article covers the top picks from the billionaire investor. We also looked at the upside potential of the stocks since they represent the future appreciation value of the investors’ capital. We have used this upside potential to rank our picks as well. All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 27, 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
% holding in portfolio: 0.07%
Upside Potential: 33.86%
The world’s largest dedicated semiconductor foundry, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), produces chips for major tech companies. The company specializes in advanced manufacturing nodes in Taiwan, including 3nm and 5nm technologies. Samsung and Intel pose tough competition in the global market, but with technological leadership, superior yield management, and a pure-play foundry model, the company gains a competitive edge. In addition to high-performance computing, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) dominates the automotive and mobile markets with technological innovation.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) represents 0.07% of Stephen Mandel’s portfolio. Though ranked lowest on our list, the percentage holding suggests a cautious but strategic positioning. The demand for the company’s 3nm and 5nm technologies has increased its net revenue for the fourth quarter of 2024 by 14.3%. Though the company anticipates a 5.5% decline in revenue in the first quarter of 2025 owing to smartphone seasonality, sales are projected to pick up mid-year, causing a 38% year-over-year increase at the end of the second quarter.
Despite the small stake, the substantial 33.86% upside potential marks Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a sleeper among the best billionaire stocks.
9. Vistra Corp. (NYSE:VST)
% holding in portfolio: 1.58%
Upside Potential: 35.82%
Based in Texas, Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. The company focuses on serving residential, commercial, and industrial customers in the U.S. Its portfolio includes a diversified mix of natural gas, nuclear, solar, and battery storage assets. Vistra Corp. (NYSE:VST) differentiates itself from its peers through its efficient risk management system and strategic investments in renewable energy. The company’s strong cash flow also supports debt reduction, maximizing shareholder returns.
Vistra Corp. (NYSE:VST) makes up 1.58% of Mandel’s portfolio, a meaningful investment in an often-overlooked sector. At present, the company is performing well, reaching a full-year adjusted EBITDA of $5.656 billion, thereby surpassing the high end of its original guidance range for 2024. During the period, the company also saw the successful completion of a valuable acquisition. The company obtained 1 million retail customers and added three new nuclear sites to its portfolio through the acquisition. Having secured two large power purchase agreements for its renewable pipeline, the company released its operational adjusted EBITDA guidance for 2025, which is set in the range of $5.5 billion to $6.1 billion.
With an impressive upside potential of 35.82%, Vistra Corp. (NYSE:VST) is a prime example of the billionaire’s sound strategy of moving early into energy transitions before mainstream investors catch on.
