There is huge upward potential in the stock picks of billionaire Paul Singer

We recently released a list 10 shares of billionaire Paul Singer with huge upward potential. In this article, we will explore the stance of Seadrill Limited (NYSE:SDRL) with other stock picks with huge upside potential.

Paul Singer was founded Elliott Investment Management In 1977 in New York. It is one of the oldest hedge funds under continuous management and one of the largest activist funds in the world. It is a management member of the U.S. hedge funds Elliott Associates and Elliott International Limited. Elliott International Limited was launched in 1994 and has exceeded 5 percentage points per year since its inception, a record-breaking performance reflected by Elliott Associates. Paul Singer received his bachelor’s degree in psychology from the University of Rochester and Harvard Law School. He then worked for four years in corporate law firms and investment banks Donaldson, Lufkin & Jenrette, before founding Elliott Investment Management. According to the February 13, 2025 Adv Form, Elliott Management has 38 clients and discretionary assets of US$97.37 billion in management. The last reported 13F application for the 4224 quarter included $16.66 billion custodial 13F Securities and the top 10 holdings and 82.44% of the top 10.

Singer has built a reputation on Wall Street, as his aggressive strategies often generate huge shareholder value by leveraging weaknesses in various asset classes. His initial investment method was to target companies and even governments, while buying extremely damaged debts. In February 2025, the singer appeared in a podcast called "Good Company with Nicolai Tangen" and he also discussed what he believes is behind bad investments. Although bad luck is still a relevant factor, he believes these failures are due to oversight and/or incorrect hedging strategies:

“Sometimes it's bad luck, but more frequently it's (that) we missed something. We missed. Or the hedges weren't, they weren't the right hedges. The tracking error was much more than we expected. At the beginning of my career, 1977 to like 1987, hedging was much more simple, because we were long a convertible bond and short the stock into which the convertible was convertible. So that's very straightforward. And tracking error wasn't really a factor. We've become much The more refined packages are for making various transactions, but these transactions are always uncertain, but sometimes, I don't mind, it's the worst trade.

To compile 10-share stock picks from billionaire Paul Singer, we screened Elliott Manage’s Q4 2024 Q4 through Insider Monkeys. From these documents, we examined the upside potential of CNN to obtain the top 20 stock picks and ranked the stocks in this upside order of upside potential. We also increased Elliott Management's stake in each share and broader hedge fund sentiment.

Note: All data were purchased on May 8.

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 is here for more details).

Seadrill Ltd. (NYSE: SDRL): In billionaire Paul Singer

The drilling rig is under the sunset in an offshore position.

Elliott Management shares: $144.19 million

Number of hedge fund holders: 42

As of May 8: Average upward potential of 66.08%

Seadrill Limited (NYSE:SDRL) provides offshore drilling services to the global oil and gas industry. It owns and operates drilling vessels and semi-submersible devices for operation in shallow and ultra-deep waters in benign and harsh environments. It serves oil super MPs, state-owned state oil companies and independent oil and gas companies.

The company reported a $1.3 billion contract backlog in 2024, a net increase of $700 million this year. The backlog provides revenue visibility extended to 2028-2029, with approximately 90% of the midpoints in the 2025 revenue guidance already ensuring the backlog's treatment. The revenue guide is between $130 and $1.36 billion. According to the CEO, Seadrill can navigate market volatility due to a strong balance sheet and durable backlog.

Seadrill Limited (NYSE:SDRL) won two major long-term contract awards in Brazil in December 2024, which will begin in 2026. The awards increased by $1 billion, adding $1 billion to the company's backlog fees and including more than $70 million in mobilization fees. These awards for West Jupiter and West Telecom are 3 years respectively.

Patient capital opportunity equity strategies are positive for companies and point out the following about Seadrill Limited (NYSE:SDRL) in its Q1 2025 Investor's letter:

“ Seadrill Limited (NYSE: SDRL) is the fourth most pure game deep water drilling expert. The company stood out from bankruptcy in February 2022 with net cash, which could benefit from demand in the limited supply and deep water rig market. Almost half of all deep-water rigs around the world have been abandoned over the past decade, and industry integration has created a more rational competitive landscape than we have seen in history. While oil demand is still quite healthy, onshore production from the United States, Canada and Russia is surprising, which helps keep prices covered well. Although this has negatively impacted recent contract interest rates, we believe that shale supply growth in the long-term future will be limited and that more offshore supply is needed to benefit from offshore rigs. Given its highly professional rig fleet and minimum debt, we believe the company is favorable when it comes to rebounding. We believe Seadrill can lead industry mergers or become acquisition targets. ”

Overall, SDRL Ranked second There is huge upside potential in the stock picks of our billionaire Paul Singer. Although we acknowledge the potential of SDRL as an investment, our belief is that AI stocks provide high 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 AI stocks that are more promising than SDRL but have less than 5 times its earnings, check out our report Cheapest AI stocks.

Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.

Disclosure: None. This article was originally published in Internal monkey.