In this article, we will discuss the 10 Best New Stocks to Invest In According to Hedge Funds.
On April 16, Fundstrat’s Tom Lee joined ‘Closing Bell’ on CNBC to discuss that the stock market is currently in a stronger position than it was earlier in the year when it reached all-time highs. He identified three primary reasons for this outlook: the US market’s ability to handle oil surges that are damaging other nations, rising earnings that suggest the war is stimulating the economy, and historical data indicating that oil spikes have a smaller impact on core inflation than previously feared. Based on these factors, Lee maintained a base case of 7,300 for the market this year within his three-phase market framework before expecting a larger drawdown.
Lee observed that since the war began, the top performers have been crypto assets like Ethereum and Bitcoin, which are highly correlated to tech, followed by energy, the Mag 7, and software stocks. He described tech as the go-to sector for growth when investors are generally worried about growth, adding that it remains an under-owned group because of previous selling pressure. Lee also confirmed that technology is expected to deliver the best earnings growth, while current valuations have become more attractive due to recent price declines. He characterized these tech companies as having true moats and a track record of growing earnings faster than the S&P 500. He views these firms as primary winners in the AI sector and suggests that buying them at a market multiple today will, in five years, be seen as a surprisingly cheap entry point.
Our Methodology
We used screeners to identify stocks that have gone public in the last 5 years, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on April 24.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best New Stocks to Invest In According to Hedge Funds
10. Medline Inc. (NASDAQ:MDLN)
Number of Hedge Fund Holders: 58
Medline Inc. (NASDAQ:MDLN) is one of the best new stocks to invest in according to hedge funds. On April 16, Medline announced an agreement with Symbotic to implement AI-powered warehouse automation, making it the first healthcare company to utilize this technology. The partnership involves deploying the Symbotic System, an AI platform that uses autonomous robots to manage the picking, storage, and retrieval of products.
Medline plans to pilot this technology in 2027 at one of its 45 US distribution centers to enhance the resiliency and scalability of the healthcare supply chain. The system is designed to automate the process of depalletizing inbound goods, storing items, and building smart outbound pallets tailored to the specific layouts of downstream recipients.
This level of automation aims to drive faster, more efficient operations while improving order accuracy. By integrating these robotics, Medline Inc. (NASDAQ:MDLN) intends to better support its vertically integrated model of manufacturing and distributing medical-surgical products across all points of care. This collaboration builds on Medline’s broader commitment to modernizing its fulfillment network through advanced technologies like goods-to-person robotic systems and proprietary packaging tools.
Medline Inc. (NASDAQ:MDLN) is a medical instruments & supplies company that serves hospitals, post-acute facilities, and nursing homes through two segments: Medline Brand and Supply Chain Solutions.
9. Circle Internet Group Inc. (NYSE:CRCL)
Number of Hedge Fund Holders: 58
Circle Internet Group Inc. (NYSE:CRCL) is one of the best new stocks to invest in according to hedge funds. On April 22, OSL Group and Circle entered a partnership to expand the accessibility of USDC across global trading and payment markets. Through OSL’s international platform, OSL Global, users can now perform 1:1 conversions between USD and USDC. The collaboration also establishes a dedicated USDC trading zone featuring major pairs like BTC, ETH, and SOL, while utilizing the stablecoin as a unified margin asset to improve capital efficiency for eligible institutional and professional clients.
The integration extends beyond trading, as OSL’s payment business has incorporated USDC to facilitate digital dollar settlements and various payment use cases. Furthermore, OSL Global plans to support access to Circle Internet Group Inc.’s (NYSE:CRCL) USYC, a tokenized money market fund, pending necessary regulatory approvals and eligibility requirements. This move is designed to connect fiat currencies with digital assets, creating a more seamless infrastructure for value exchange.
Leadership from both organizations highlighted the partnership as a commitment to building transparent, compliant financial rails. By expanding USDC liquidity in regions like Hong Kong and beyond, the companies aim to provide institutions with secure tools for real-time global transactions. The initiative reflects a shared goal of fostering market growth and innovation through the use of trusted digital dollar infrastructure.
Circle Internet Group Inc. (NYSE:CRCL) is a financial technology company that creates digital currencies and public blockchains for payments, commerce, and financial applications worldwide.
8. Gitlab Inc. (NASDAQ:GTLB)
Number of Hedge Fund Holders: 59
Gitlab Inc. (NASDAQ:GTLB) is one of the best new stocks to invest in according to hedge funds. On April 21, GitLab and Amazon Web Services/AWS announced a deepened integration that allows enterprise teams to route GitLab Duo Agent Platform inference through Amazon Bedrock. This collaboration enables joint customers to use their existing AWS accounts, IAM policies, and infrastructure to power agentic DevSecOps without the need for new vendor onboarding or separate model endpoints.
By integrating these platforms, organizations can maintain their existing security posture and governance while scaling AI adoption across their software development lifecycle. The partnership introduces a “Bring Your Own Model”/BYOM capability for self-managed customers, allowing them to connect self-hosted AI Gateways directly to Amazon Bedrock. This ensures that source code and inference traffic remain within the customer’s private AWS environment, supporting strict data sovereignty and compliance requirements.
Additionally, GitLab’s orchestration layer provides workflow-level governance and auditability, capturing agent actions alongside security findings to ensure a consistent system of record. From a commercial perspective, GitLab Credits purchased through the AWS Marketplace now count toward existing AWS spending commitments. The Duo Agent Platform uses a per-request billing model rather than per-seat pricing, allowing organizations to scale their AI capacity within current contractual frameworks.
Gitlab Inc. (NASDAQ:GTLB) develops and operates a comprehensive DevSecOps platform delivered as a single application, allowing teams to plan, build, secure, and deploy software faster. Unlike traditional development, GitLab provides an all-in-one solution that integrates source code management, continuous integration/continuous deployment (CI/CD) pipelines, and security monitoring.
7. Mineralys Therapeutics Inc. (NASDAQ:MLYS)
Number of Hedge Fund Holders: 61
Mineralys Therapeutics Inc. (NASDAQ:MLYS) is one of the best new stocks to invest in according to hedge funds. On March 24, Mineralys Therapeutics appointed Jeffrey A. Munsie as Chief Legal Officer to oversee the company’s legal and compliance functions. Munsie brings 25 years of biopharmaceutical experience to the role, having previously served in leadership positions at Orbital Therapeutics, Concert Pharmaceuticals, and Merrimack Pharmaceuticals.
His background spans the full drug development lifecycle, from preclinical stages through commercialization, which the company views as essential for its next phase of growth. In his new role, Munsie will provide strategic counsel as Mineralys Therapeutics Inc. (NASDAQ:MLYS) advances its lead candidate, lorundrostat, which targets hypertension and related conditions like chronic kidney disease and obstructive sleep apnea.
CEO Jon Congleton highlighted Munsie’s proven track record in handling intellectual property strategy, transactions, and compliance as a key asset for the organization. Munsie, a Harvard Law School graduate, expressed his commitment to helping bring the company’s treatments to patients affected by dysregulated aldosterone.
Mineralys Therapeutics Inc. (NASDAQ:MLYS) develops therapeutics that target illnesses caused by dysregulated aldosterone. It is working on the development of lorundrostat, an aldosterone synthase inhibitor for cardiorenal conditions. These include chronic kidney disease, hypertension, and obstructive sleep apnea.
6. Toast Inc. (NYSE:TOST)
Number of Hedge Fund Holders: 68
Toast Inc. (NYSE:TOST) is one of the best new stocks to invest in according to hedge funds. On April 14, Toast launched Toast Drive-Thru, a unified enterprise-grade solution designed to modernize quick-service restaurant/QSR operations. The platform integrates hardware, POS-native software, and AI voice ordering into a single ecosystem, replacing the fragmented systems often used by drive-thru brands.
By combining these technologies, Toast aims to help operators increase order accuracy and throughput while optimizing labor efficiency in high-volume environments. The solution features specialized hardware from Delphi by Toast, Inc. (NYSE:TOST), including high-brightness outdoor digital menu boards capable of performing in various weather conditions.
On the software side, a new POS drive-thru mode allows staff to tag vehicles and manage orders more efficiently, while an advanced order confirmation screen lets guests verify their items in real time. The platform also supports AI voice ordering integrations with partners like Incept AI to automate order-taking and uses speed-of-service reporting to identify operational bottlenecks.
Toast Inc. (NYSE:TOST) offers financial technology solutions and restaurant management software. It provides a cloud-based, all-in-one digital technology platform designed for the restaurant industry, offering software and financial technology solutions that help restaurants across point-of-sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management.
While we acknowledge the potential of TOST to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TOST and that has 100x upside potential, check out our report about the cheapest AI stock.
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