NASDAQ CEO and chair Adena Friedman appeared on CNBC’s ‘Squawk Box’ on April 24 to discuss what to make of the market volatility, as well as the IPO landscape. Friedman reported that NASDAQ achieved 12.5% overall revenue growth in the quarter, with every division posting double-digit increases. Specifically, the index business grew by 26%, which was supported by $27 billion of inflows during the quarter. Half of these inflows were directed into NASDAQ 100 index products, while the other half went into various other indexes offered by NASDAQ. Friedman also acknowledged that the economy entered the year with resilience but faced increasing uncertainty and volatility as the quarter progressed. However, she explained that such environments often drive clients to turn to NASDAQ as the market operator of choice to manage their trading volumes and capital flows. She noted that even amid market value fluctuations, NASDAQ saw inflows into its index products and strong demand for its fintech services.

The discussion also indicated that while short-term market volatility can boost trading activity and liquidity, longer-term IPO prospects depend on broader economic conditions. Friedman said that IPO activity and investor behavior could change more significantly if the economy were to enter an extended recession. But for now, NASDAQ benefits from a strong start to the year and remains a preferred venue for investors to express their views. The conversation then turned to global capital flows, particularly as Chinese sovereign wealth funds may reduce investments in US venture capital and private equity firms. Friedman stated that the capital flows where returns are the strongest. She emphasized that asset owners and managers have ‘fiduciary’ responsibilities to their ultimate beneficiaries and will prioritize returns over the long term. Acknowledging the influence of geopolitical and political factors on investment decisions, Friedman stressed that NASDAQ’s role is to provide the infrastructure that allows capital to flow efficiently regardless of shifts.

With that acknowledged, we’re here with a list of the 11 best young stocks to buy according to hedge funds.

Our Methodology

We first used the Finviz stock screener to compile a list of young stocks that went public in the last 3 years. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

11 Best Young Stocks to Buy According to Hedge Funds

11. Amer Sports Inc. (NYSE:AS)

Number of Hedge Fund Holders: 48

Amer Sports Inc. (NYSE:AS) designs, manufactures, and sells sports equipment, apparel, footwear, and accessories. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The company distributes its products through several channels, such as retail stores, general sporting goods retailers, and independently operated partner stores.

Arc’teryx, one of Amer’s Technical Apparel segments, concluded 2024 with over $2 billion in sales. The overall Technical Apparel segment reported a 29% omnichannel comparable sales growth in Q4. Arc’teryx’s growth relies on its differentiated DTC model, with 8 new retail stores opened in Q4, which brought the total openings for 2024 to 33. 6 of these locations were in China. The brand plans to maintain a similar pace in 2025 with 25-30 net new store openings.

On April 28, Citi lowered the price target on Amer Sports Inc. (NYSE:AS) to $30 from $36 while keeping a Buy rating on the shares. The adjustment reflects the impact of tariffs and a weakening sales backdrop. Citi’s new estimates use 10% tariffs for the rest of the world and 60% tariffs on China. For the full year 2025, Amer Sports anticipates ~20% revenue growth in the Technical Apparel segment.

10. Vestis Corp. (NYSE:VSTS)

Number of Hedge Fund Holders: 48

Vestis Corp. (NYSE:VSTS) provides uniform rentals and workplace supplies in the US and Canada. The company’s products include uniform options, such as shirts, pants, outerwear, gowns, scrubs, high visibility garments, particulate-free garments, and flame-resistant garments. It also offers shoes and accessories, along with workplace supplies.

In 2023, Aramark broke out its Aramark Uniform Services division to become a new independent, publicly listed company that was eventually called Vestis. This company then went on to make $665.25 million in quarterly revenue in Q2 2025, which declined by 5.69% year-over-year.

However, these results also revealed headwinds that impacted the company’s growth trajectory. Vestis Corp.’s (NYSE:VSTS) revenue from existing customers decreased by $5.8 million, particularly. There was also a $6.8 million decrease in direct sales. Barclays analyst Manav Patnaik lowered the price target on Vestis to $5 from $10 on May 9 while maintaining an Underweight rating on the shares after the company released its Q2 2025 earnings report.