We recently published a list of Billionaire Israel Englander’s 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where The Trade Desk, Inc. (NASDAQ:TTD) stands against other billionaire Israel Englander’s stock picks with huge upside potential.
Millennium Management is a globally recognized investment firm specializing in multi-strategy hedge fund offerings. Founded in 1989 by Israel A. Englander and Ronald Shear, the firm initially launched with $35 million in capital, including a $5 million contribution from Englander and additional investment secured from Canadian financiers, the Belzberg brothers. Despite early struggles that led to Shear’s departure just six months after its inception, Millennium evolved into one of the largest and most successful alternative asset management firms. As of late 2024, it boasts over $75.8 billion in assets under management.
Headquartered in New York, Millennium has expanded its operations globally, establishing 18 primary offices in major financial hubs including London, Dubai, Singapore, and Tokyo. The firm employs a platform-based investment approach, with approximately 330 independent investment teams operating under a decentralized model. These teams deploy a wide array of strategies across multiple asset classes, including equities, fixed income, commodities, and derivatives. Millennium’s core strategies focus on fundamental equity research, equity arbitrage, macroeconomic-driven fixed income investments, and commodity-based trades. Through this highly diversified, data-driven model, the firm aims to generate consistent, high-quality returns while managing risk effectively across global markets.
Under the leadership of Israel Englander, who remains the driving force behind the firm, Millennium has cultivated a disciplined risk management framework and continuously refined its investment strategies. A graduate of New York University who left his MBA program early to trade on the American Stock Exchange, Englander applied his market-making and derivatives trading expertise to build Millennium into an institutional powerhouse. His innovative approach emphasizes capital allocation to specialized teams rather than direct investment decisions, fostering a dynamic and competitive investment environment that attracts top talent from around the world. By 2011, Millennium was managing approximately $13 billion in assets, and in recent years, Englander has explored opportunities to sell a minority stake in the firm, signaling a move toward broader institutional ownership.
As of the fourth quarter of 2024, Millennium reported managing $204.64 billion in 13F securities, with its top ten holdings accounting for 15.5% of its portfolio. It has consistently ranked among the highest-grossing hedge funds, achieving the fourth-largest net gains of any hedge fund since inception. Millennium’s commitment to generating superior risk-adjusted returns, maintaining a diversified investment approach, and embracing strategic innovation has earned it a formidable reputation among institutional investors. With its expansive global presence, proven track record, and disciplined investment philosophy, Millennium Management continues to be a dominant force in the global hedge fund industry.
Our Methodology
For this article, we searched through Millennium Management’s Q4 2024 13F filings to identify billionaire Israel Englander’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 33% based on analyst ratings and discussed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
Israel Englander of Millennium Management
The Trade Desk, Inc. (NASDAQ:TTD)
Number of Hedge Fund Holders as of Q4: 63
Millennium Management’s Equity Stake: $298.30 Million
Upside Potential as of April 26: 75.49%
Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk, Inc. (NASDAQ:TTD) is an American multinational technology company headquartered in Ventura, California, specializing in real-time programmatic marketing automation technologies, products, and services. Its cloud-based software enables advertisers to plan, place, and target their online ads more effectively by leveraging data-driven insights to personalize digital content delivery.
For the fourth quarter of 2024, The Trade Desk, Inc. (NASDAQ:TTD) reported revenue of $741 million, representing a 22.3% year-over-year increase, although slightly missing analyst estimates of $759.5 million. Adjusted earnings per share (EPS) came in at $0.59, beating analyst expectations of $0.57. The company’s adjusted EBITDA was $350 million, reflecting a 47.2% margin but falling short of the $365.9 million forecast. Operating margin improved to 26.4%, up from 23.8% in the same quarter of the previous year, although free cash flow margin dropped to 23.9%, down from 35.4% in the previous quarter.
Looking ahead, The Trade Desk, Inc. (NASDAQ:TTD) provided revenue guidance for the first quarter of calendar year 2025 at $575 million at the midpoint, below analyst estimates of $582 million. EBITDA guidance was also lower than expected at $145 million compared to the projected $192.7 million. Despite these softer forecasts, the company maintains a robust market capitalization of $59.33 billion, underlining its strong position in the programmatic advertising industry.
Overall, TTD ranks 1st on our list of billionaire Israel Englander’s stock picks with huge upside potential. While we acknowledge the potential of TTD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TTD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.