We recently published an article titled Top 12 Stocks to Buy According to Citadel Investment Group. In this article, we are going to take a look at where The Walt Disney Company (NYSE:DIS) stands against the other stocks.
Citadel Investment Group was officially founded by Ken Griffin on November 1, 1990, with $4.2 million in assets under management. By the end of 2013, the fund had expanded to $16 billion, a remarkable growth driven by a combination of advanced computer algorithms, complex financial models, and a highly secretive approach in its initial years. Griffin was an early adopter of quantitative, technology-driven investment strategies, implementing sophisticated methods long before many firms had even integrated basic digital tools. His reliance on cutting-edge technology and data-driven decision-making positioned Citadel as a leader in the hedge fund industry, setting it apart from traditional investment firms. As of Q4 2024, it holds approximately $577.87 billion in 13F securities in its highly diversified portfolio.
Known more commonly as Ken Griffin, Kenneth Cordele Griffin was born in 1968. His interest in finance began early, and while still a student, he started investing from his Harvard dorm room. In 1986, he launched a small hedge fund that leveraged emerging quantitative analytics to guide investment decisions. A year after he earned a Bachelor of Arts with Honors in Economics from Harvard College in 1989, Griffin founded Citadel, which has since become one of the world’s most successful alternative investment firms. In addition to leading Citadel, Griffin serves as the Founder and Non-Executive Chairman of Citadel Securities, a major global market maker.
Citadel was built on the principle that exceptional talent, combined with advanced quantitative analytics and powerful technology, could unlock significant opportunities in capital markets. The firm’s culture emphasizes continuous learning, innovation, and meritocracy, earning it a reputation as one of the best places to work on Wall Street. Today, Citadel manages over $60 billion in investment capital, consistently ranking among the most profitable hedge funds worldwide. Its success has benefited a range of institutional investors, including pension funds, university endowments, hospital systems, and foundations, contributing to impactful advancements in fields such as medical research and scientific discovery.
Citadel Investment Group employs a diverse range of investment strategies, with a strong focus on fixed income, macro, and quantitative trading. Its fixed income and macro strategy, one of the firm’s longest-running approaches, targets interest rate swaps, sovereign bonds, inflation, currencies, emerging markets, equities, commodities, and credit. By leveraging macro and relative value strategies, the firm integrates quantitative modeling, deep macroeconomic insights, and monetary policy expertise to identify opportunities. The research and trading teams work collaboratively, applying both qualitative and quantitative analysis to generate and refine investment ideas.
Additionally, Citadel’s Global Quantitative Strategies (GQS), established in 2012, has rapidly grown into a major force in the industry. Utilizing advanced statistical and quantitative modeling techniques, its agile teams of researchers, engineers, and traders develop and execute investment strategies with precision. Specialization, collaboration, and centralized operations drive efficiency, allowing the firm to run complex strategies at scale. By combining cutting-edge technology with deep expertise, Citadel continues to expand its capabilities and strengthen its competitive position in global markets.
Beyond finance, Griffin has made a profound impact through philanthropy, donating over $2 billion to education, healthcare, and social initiatives. His philanthropic efforts, now coordinated through Griffin Catalyst, have expanded educational access, strengthened medical and research institutions, and supported cultural organizations. His strategic insights also played a key role in the development of Operation Warp Speed, accelerating COVID-19 vaccine distribution. Whether in business or philanthropy, Griffin’s commitment to data-driven decision-making and transformative impact remains a defining characteristic of his career.
Our Methodology
The stocks discussed below were picked from Citadel Investment Group’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A packed theater of moviegoers watching a blockbuster film produced by the entertainment company.
The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders as of Q4: 108
Citadel Investment Group’s Equity Stake: $553.97 Million
Commonly known as Disney, The Walt Disney Company (NYSE:DIS) is an American multinational mass media and entertainment conglomerate headquartered in Burbank, California. Valued at a market cap of $203.9 billion as of March 4, 2025, the company also offers popular direct-to-consumer streaming services such as Disney+ and Hulu in addition to its extensive theme parks and resort experiences worldwide.
The Walt Disney Company (NYSE:DIS) exceeded expectations in its fiscal Q1 2025 earnings report on February 5, posting earnings per share of $1.76, compared to analysts’ estimates of $1.43. Revenue also came in higher than anticipated at $24.69 billion, surpassing the forecasted $24.55 billion. A key highlight was the entertainment streaming segment, which includes Disney+ and Hulu, achieving its second consecutive profitable quarter. The segment generated $293 million in operating income on $6.07 billion in revenue, marking a 9% year-over-year increase. Despite a net loss of 700,000 Disney+ subscribers worldwide, Hulu exceeded expectations by adding 1.6 million new subscribers following price increases in October.
Disney’s Direct-to-Consumer segment turned profitable for the first time, signaling progress toward sustainable streaming growth. The strong performance of Hulu, combined with increased advertising revenue for ESPN, contributed to a $247 million operating income boost for the company’s sports segment. These results underscore The Walt Disney Company (NYSE:DIS)’s ability to navigate industry challenges while expanding its streaming and sports divisions, reinforcing investor confidence in its long-term strategy.
As of Q4 2024, Citadel Investment Group significantly increased its holdings in The Walt Disney Company (NYSE:DIS) to approximately 4.98 million shares, marking a 1,786% rise from 263,866 shares in Q3. The fund’s stake in the company is now valued at nearly $553.97 million. Insider Monkey’s database indicated that 108 hedge funds held stakes in the company at the end of Q4 2024, with a value of nearly $6.61 billion, as opposed to 76 funds in Q3.
Overall DIS ranks 11th on our list of the top stocks to buy according to Citadel Investment Group. While we acknowledge the potential for DIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DIS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
