Is HDFC Bank Limited (HDB) Among Billionaire Daniel Sundheim’s Stock Picks Heading Into 2025?

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We recently published a list of Billionaire Daniel Sundheim’s Top 15 Stock Picks Heading Into 2025. In this article, we are going to take a look at where HDFC Bank Limited (NYSE:HDB) stands against other Billionaire Daniel Sundheim’s stock picks heading into 2025.

D1 Capital Partners might be one of the youngest hedge funds but it is one with a solid track record in a highly competitive landscape. Founded in 2018, the hedge fund successfully navigated the downturn triggered by the COVID-19 pandemic thanks to an aggressive investment strategy that revolves around fundamental research.

Daniel Sundheim is the brainchild, having started the hedge fund with $5 billion seed capital. As the founder and chief investment officer, he propelled the hedge fund to prominence in 2020 with a 54% gain in one of the most unpredictable years in the investment world. The stellar performance that continued into 2021 came as the value hedge fund focused on private equity and emerging startups that accounted for 50% of the portfolio.

READ ALSO: Billionaire David Tepper’s Top 10 Stock Picks Heading into 2025 and 10 Best Stocks to Buy for the Long-Term According to Charles Akre.

Nevertheless, Sundheim had one of the worst years of his career in 2022 as the overall equity markets came under pressure amid heightened inflation. As the S&P 500 fell 19.4%, D1 Capital ended up underperforming, going down by 30.5%. However, the hedge fund bounced back to winning ways in 2023, gaining more than 19% as it marked down some of its private investments.

Sundheim’s knack for investing started while he was an undergraduate at the Wharton School University of Pennsylvania. While in college, he invested and traded tech stocks. He went on to gain valuable investing experience while working as an analyst at Bear Stearns.

“Certain people are born to do certain things, and Dan was born to deploy capital,” said Dris Upitis, a former portfolio manager at Viking with Sundheim.

D1 Capital Partners’ edge stems from an investment strategy that revolves around fundamental research to uncover undervalued investment opportunities. Additionally, the hedge fund engages in diversification as one of the ways of spreading the risk and shrugging the pitfalls of volatility in specific sectors.

While controlling about $5.2 billion in portfolio value, Sundheim invests close to a third of its capital in private market bets. Industrial services and consumer stocks also account for the most significant share of the hedge fund’s portfolio. It also has substantial exposure to tech stocks from which it is benefiting from the artificial intelligence frenzy.