In our ongoing exploration of investment wisdom, we recently highlighted Billionaire Mason Hawkins’ 10 Small-Cap Stocks with Huge Upside Potential. Today, we shift our focus to HF Sinclair Corporation (NYSE:DINO) and evaluate where it stands among Mason Hawkins’ promising small-cap picks.
Mason Hawkins is a distinguished American investor and the founder and chairman of Southeastern Asset Management. His academic foundation includes a Bachelor of Arts in Finance from the University of Florida, followed by an MBA from the University of Georgia. Prior to establishing Southeastern, Hawkins honed his expertise as the Director of Research at Atlantic National Bank and First Tennessee Investment Management, where he cultivated the disciplined value investment strategy that defines his approach today. His fund, Southeastern Asset Management, is known for its concentrated portfolio of approximately 40 to 50 stocks and manages assets totaling over $5.27 billion as of March 2024.
The essence of Hawkins’ investment philosophy is rooted in value investing—purchasing quality stocks at prices significantly below their intrinsic value. This approach operates on the principle that the market often overreacts to news, causing stock prices to fluctuate without altering the underlying fundamentals of a company. Hawkins meticulously analyzes financial data, seeking undervalued gems that exhibit strong potential for long-term growth.
His strategy has gained him notable accolades, such as the Investor’s Lifetime Achievement Award in 2005 and Morningstar’s Domestic Equity Fund Manager of the Year award in 2006, marking him as a significant figure in the investment community.
In line with the current market landscape, Hawkins’ focus has recently shifted toward small-cap stocks. These stocks have historically lagged behind their large-cap counterparts; however, investment analysts like Francis Gannon, Co-Chief Investment Officer at Royce Investment Partners, highlight that small-caps are currently attractively priced for long-term investments. Gannon echoes Hawkins’ strategy by recommending investment in high-quality small-cap companies characterized by robust fundamentals, low debt, and substantial upside potential.
To identify the best investment opportunities, we meticulously reviewed Southeastern Asset Management’s 13F filings alongside data from Insider Monkey. Our research ranked stocks in ascending order based on their upside potential, factoring in the stakes held by Southeastern and the overall hedge fund sentiment around each company. As of April 28, 2025, we classified small-cap companies as those with market capitalizations between $1 billion and $10 billion.
Why pay attention to the stocks favored by hedge funds? Our extensive research indicates that mimicking the top stock picks of leading hedge funds can lead to significant market outperformance. Our quarterly newsletter employs a strategy of selecting 14 small-cap and large-cap stocks each quarter, boasting an impressive return of 373.4% since May 2014—outpacing its benchmark by a staggering 218 percentage points.
Market Capitalization: $5.75 billion
Number of Hedge Fund Holders: 41
Southeastern Asset Management Stake: $96,343,863
Analyst Upside Potential: 37.66%
Turning our focus back to HF Sinclair Corporation (NYSE:DINO), this independent energy company, headquartered in Texas, operates across diverse segments including Refining, Renewables, Marketing, Lubricants & Specialties, and Midstream.
Recently, analyst Joe Laetsch from Morgan Stanley reaffirmed a Buy rating for DINO, maintaining a price target of $50. While acknowledging the hurdles posed by maintenance activities and varying crude differentials, Laetsch remains optimistic about the company’s refining segment, predicting benefits from increased crude throughput. Despite anticipated dips in sales for the Lubricants & Specialties segment, the overall performance remains solid, particularly in the Midstream segment, which is expected to maintain stability in its annual run-rate.
In fiscal year 2024, HF Sinclair achieved record EBITDA figures, with the Marketing segment growing 23% year-over-year and reaching $75 million, and the Midstream segment rising 14% to $447 million. These robust performances enabled the company to return over $1 billion to shareholders through dividends.
HF Sinclair Corporation – Despite facing challenges throughout the year, the company boasts unique assets and a corporate culture dedicated to value per share growth. Recent price volatility provided an opportunity for savvy investors to capitalize.
Overall, DINO ranks 9th on our list of Mason Hawkins’ small-cap stocks with tremendous potential. While we recognize DINO’s promise, our research indicates that AI stocks could offer even greater returns in a shorter time frame. One AI stock has significantly increased in value since early 2025, defying the trends seen in many popular AI stocks. For insights on this compelling investment opportunity—an AI stock trading at less than 5 times its earnings—check out our exclusive report on the cheapest AI stock.
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Disclosure: None. This article originally appeared in Insider Monkey.