Jabran Kundi
14 min read
In This Article:
Ken Griffin, the founder of Citadel, is an influential albeit controversial figure in the investment industry. Ken Griffin tasted early success while trading during his college days, and it is safe to say that he has never looked back since. Despite huge setbacks during the financial crisis of 2008, he used his skills and determination to make a comeback where many others would have simply closed the fund and moved on.
The billionaire investor currently manages assets worth around $65 billion across his funds. Owing to its large size and track record of success, Ken Griffin’s stock moves often make it to the news and are closely followed by investors. We decided to do the same, focusing on Mid-cap stocks that still had the potential to turn into established giants tomorrow.
To come up with the list of billionaire Ken Griffin's 10 midcap stock picks with huge upside potential, we looked at his latest 13F holdings and, among his significant holdings, only considered stocks between $10 billion and $40 billion in market cap. We then looked at the average analyst price target on Wall Street and ranked the stocks according to their upside potential.
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).
Stock Upside Potential: 16.82%
Citadel Investment Group’s Stake: $579,542,355
Lululemon Athletica Inc. operates as a retailer, designer, and distributor of technical athletic apparel, accessories, and footwear for men and women. It provides tops, pants, jackets, and shorts for athletic activities. The stock has finally started recovering its losses, surging over 8% from its April lows.
The company remains committed to its core specialties and does not stretch its resources by selling a wide range of products like its competitors. It helps the firm to maintain a distinctive brand image, enabling price premiums. It also helps to build strong relationships with customers to drive long-term loyalty. Additionally, LULU also prioritizes product design, offering a limited high-end product range.
Heading to 2025, the company expects revenue to be in the range of $11.15 billion to $11.3 billion. It expects revenue growth of 5% to 7% for the year. Diluted EPS is projected to be between $14.95 and $15.15. With a focus on international markets, the firm intends to expand its retail presence by opening 40 to 45 new stores throughout the year. However, gross margin is projected to reduce by approximately 60 basis points, driven by FX headwinds, fixed cost deleverage, and tariff increases.
