From Yahoo Finance: 2025-05-08 19:20:00

In a recent article, we explored Billionaire Quants’ Two Sigma’s 10 Stock Picks with Huge Upside Potential, comparing Alphabet Inc. (GOOGL) against other choices. Two Sigma Advisors, a leading quant hedge fund managing $60 billion, saw strong performance in 2024 alongside other quant funds like D.E. Shaw and Citadel.

Despite Two Sigma’s strong returns, the hedge fund founders stepped back from active management due to internal tensions last year. Recent reports indicate that John Overdeck is returning to an active role while David Siegel remains confident in Co-CEO Scott Hoffman.

Amidst potential recession risks, Two Sigma’s management shakeup is a positive move. The risk of a US recession is looming, with the chance of a downturn at 50-50, according to Zurich Insurance Group’s chief market strategist.

Alphabet Inc. (GOOGL), a top pick of Two Sigma Advisors, showed strong growth in Q1 2025, with consolidated revenues up 12% YoY. Despite facing challenges, including a potential partnership shift with Apple, analysts maintain a Buy rating and $200.00 price target on GOOGL stock.

GOOGL ranks 9th on the list of Two Sigma’s stock picks with huge upside potential. While GOOGL holds promise, AI stocks may offer higher returns in a shorter timeframe. For those seeking AI investment opportunities, consider exploring cheaper AI stocks for potential growth.

Read more: Among Billionaire Quants’ Two Sigma’s 10 Stock Picks with Huge Upside Potential