Hedge funds often make bold, high-risk decisions, but some of their investments fall into lower-risk, high-growth categories. Elliott Investment Management, one of the most influential activist hedge funds, has built a strong track record with a 17% 3-year annualized return across its top holdings, according to Tokenist.
Led by Paul Singer, the fund focuses on troubled or undervalued companies, acquiring large stakes to influence corporate strategy. Recent moves include a $2.5 billion investment in Phillips 66 (NYSE: PSX), doubling its stake from last year and outpacing the S&P 500’s 11% YTD gain vs. 2.2% for the index.
For value investors, Elliott’s top three stock picks—Triple Flag Precious Metals (NYSE: TFPM), CorMedix Inc. (NASDAQ: CRMD), and Howmet Aerospace Inc. (NYSE: HWM)—offer potential long-term opportunities.
Triple Flag Precious Metals (NYSE: TFPM) – Precious Metals Growth Play
📌 Elliott’s Portfolio Weight: 12.07%
📌 Stock Price: $16.87
📌 1-Year Performance: +40%
📌 Annual Dividend: $0.22 per share (1.31% yield)
📌 Wall Street Price Target: $20.78 (Potential Upside: 23%)
Why It Matters
Triple Flag invests in mining royalties instead of directly operating mines, giving investors exposure to gold, silver, lithium, copper, and nickel without the risks of mining operations.
With President Trump’s second term focusing on tariffs and onshoring, demand for base materials is expected to rise. Triple Flag holds stakes in 30 producing assets, 45 in development, and 155 in exploration across North America, Latin America, Australia, Mongolia, and South Africa.
Since 2017, the company has consistently grown operating cash flow and profit margins, making it an attractive hedge against inflation and supply chain disruptions.
CorMedix Inc. (NASDAQ: CRMD) – Biopharma Breakout Stock
📌 Elliott’s Portfolio Weight: 5%
📌 Stock Price: $9.95
📌 1-Year Performance: +200%
📌 Wall Street Price Target: $16.83 (Potential Upside: 69%)
Why It Matters
CorMedix has successfully moved out of penny-stock status following a major commercial contract for DefenCath in September 2024.
DefenCath is a taurolidine and heparin-based solution that reduces catheter-related bloodstream infections (CRBSI). The global healthcare contract now serves over 2,000 clinics in the U.S., providing stable revenue for years to come.
With zero reported debt and $52 million in cash reserves, CorMedix is expanding into mid-size and large dialysis organizations, a sector expected to grow at 4.3% CAGR through 2032.
With only five major companies controlling 85% of the dialysis market, CorMedix has a strong market penetration opportunity ahead.
Howmet Aerospace Inc. (NYSE: HWM) – A Key Military and Commercial Player
📌 Elliott’s Portfolio Weight: 4.20%
📌 Stock Price: $130.34
📌 1-Year Performance: +88%
📌 Wall Street Price Target: $145.07 (Potential Upside: 11%)
Why It Matters
Howmet Aerospace is a key defense and commercial aerospace supplier, specializing in precision-engineered turbine components and structural materials.
The company provides critical airframe and engine parts for the F-35 Lightning II fighter jet, while also serving Boeing and Airbus.
In FY 2024, Howmet reported:
✔ 9% YoY revenue growth to $1.9 billion
✔ Net income of $314 million (up from $236M in 2023)
✔ Increased 2025 revenue growth outlook from 7.5% to 8%
As the global military-industrial complex continues to expand, Howmet stands to benefit from defense contracts and commercial airline fleet upgrades.
The company expects Boeing and Airbus to maintain stable production levels, with:
📌 Boeing producing ~25 737-MAX aircraft per month
📌 Airbus producing ~mid-50s per month for A320 and ~6 per month for A350
Analysts from WSJ forecast an average price target of $145.07 per share, compared to its current price of $130.34, reflecting 11% upside potential.
Conclusion
Elliott Investment Management’s portfolio provides a useful indicator for value investors, focusing on industries with strong growth potential and economic resilience.
✔ Triple Flag (TFPM): Benefiting from rising demand for base metals under new trade policies.
✔ CorMedix (CRMD): A biopharma breakout with a secure revenue stream from its DefenCath contract.
✔ Howmet Aerospace (HWM): Positioned for long-term defense and commercial aviation gains.
While these stocks have seen strong growth, investors should consider broader market trends, risk factors, and valuation levels before making any investment decisions.
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