We recently released a list Billionaire Quants' 10-share stocks with big upside potential. In this article, we will explore the huge upward potential of Adobe Inc. (NASDAQ:ADBE) and other billionaire Quants’ two Sigma stocks.
Two Sigma consultants According to the analysis of archival market research, he is one of the main players in the quantitative hedge fund field. Quant Fund is an investment management company founded in 2001 by computer scientist David Siegel and mathematician John Overdeck. As of April 2025, the fund managed $60 billion worth of assets.
Quantitative funds and their multi-strategy counterparts generally perform well in the market. A Reuters analysis found that many Quant hedge funds accounted for double-digit growth in 2024. Although the "negative drivers" in areas such as energy, metals and European stocks are still "negative drivers". Two Sigmas, and Quantum Funding de Shaw and fortressand managed stable performance last year.
The hedge fund's spectrum funds returned 10.9% and 14.3% absolute return enhancement funds. However, one might argue that for hedge funds that rely on complex algorithms to make investment decisions, asset managers should beat the market. For context, the S&P 500 completed 2024 with a total return of 25.0%.
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Last August, the billionaire founders of hedge funds pulled out of active management because they couldn’t resolve the tension between them.
“For the past year and a half, we and our senior management team have been committed to ensuring the long-term success and stability of both Sigmas. Our own role has been a core consideration throughout the process. Today, we are convinced that regressing from our daily management role is the right decision at this point,” the co-founder was right in his letter to investors. ”
But recent reports suggest Overdeck is returning to active management. “What John has now determined is the right time for him to return to the role to get certain priorities and decisions, and he believes it is important for the future of the two Sigmas,” the two Sigmas said in a letter. Siegel chose to be outside the fund's top rankings, but has "full confidence" in Scott Hoffman, one of his colleagues who took over last year.
The good news is that the two Sigmas won't be stopped by a dispute between management because they need it to drive a challenging market. According to Reuters' analysis, even if the risk of a recession may not be clear, the risk of a recession is shocking. The report quotes Guy Miller, chief market strategist at Zurich Insurance Group, who said the risk of a recession in the United States is very reasonable. “Even if some deals were made on tariffs, the risk of recession increased significantly. The risk of a recession in the United States is 50-50, which is so close.”
We filtered the SEC Q4 2024 13F files for two Sigma Advisors to create this list. We focused primarily on the fund's most valuable equity holdings (excluding ETFs and options), and then ranked the draft picks as of May 8, 2025 based on analyst price targets. We picked stocks with at least 30% potential overhead and then selected the top 10. We have also added a wider range of stocks in stocks such as Q4 2024 Q4 2024 Q4 2024.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
A team of engineers and scientists collaborate on a workstation, surrounded by its applications and solutions.
Two Sigma Advisors Stakes Value: $395,320,520
As of May 8: 32.02% upward potential
Number of hedge fund holders: 117
Adobe Inc. (NASDAQ:ADBE) is a global software company known for its creative and multimedia applications. Its portfolio includes Photoshop, Illustrator, Acrobat and Premiere Pro. These products serve creative professionals, marketers and businesses in the design, document management and digital experience segments.
Adobe Inc. (NASDAQ:ADBE) financial condition in Q1 fiscal year 255 pointed to a well-performing company. Revenue was $5.7 billion, up 10% year-on-year, exceeding about $50 million. The company's digital media segments, including Creative Cloud and Document Cloud, grew 12% to $4.25 billion, while digital experience revenue rose 7% to $1.37 billion. The non-GAAP earnings per share price was $5.08, surpassing analyst expectations of $0.11.
Adobe Inc. (NASDAQ:ADBE) has also established a leader in the field of generative AI. For example, its Firefly Platform has powered over 12 billion generations since its launch. CEO Shantanu Narayen stressed in a revenue call that the company's differentiated approach to AI combines proprietary models with enterprise-level security and governance. As a result, Adobe (NASDAQ:ADBE) can capture requirements in creative, documented, and experience workflows. The integration of AI capabilities across its entire product portfolio, including text-to-image and text-to-video generation in creative cloud applications, enhances user productivity and drives subscription growth. Despite these advantages, RBC Capital analyst Matthew Swanson lowered the company's Adobe (NASDAQ:ADBE) price target from $530 to $480 on April 14, 2025. Swanson cites multiple tax collections from his peers, although he maintains an equal rating.
Overall, adbe Ranked eighth There is huge upside potential among the stock picks of our billionaire Quants. Although we acknowledge the potential of ADBE as an investment, our belief is that AI stocks have higher returns in a shorter time frame and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for more promising AI stocks than ADBE, but their earnings are trading at less than 5 times the price, check out our report The cheapest AI stock.
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Disclosure: None. This article was originally published in Internal monkey.