12 Best Small-Cap Growth Stocks to Buy According to Hedge Funds

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1. Vericel Corporation (NASDAQ:VCEL)

Vericel Corporation (NASDAQ:VCEL) is one of the Best Small-Cap Growth Stocks to Buy According to Hedge Funds. On March 4, Vericel Corporation (NASDAQ:VCEL) announced securing a major win from the FDA.

The company announced receiving FDA approval for commercial manufacturing of MACI, which is the company’s autologous cultured chondrocytes on a porcine collagen membrane. The production will take place at the company’s cutting-edge cell therapy facility in Burlington, Massachusetts. Management noted that the approval allows Vericel to ramp up production starting in Q2 2026, addressing the growing demand for the restorative cartilage repair product used in knee surgeries for injuries or osteoarthritis.

CEO Nick Colangelo described the milestone as a testament to Vericel’s operational and scientific advancement in complex cell therapies. He noted that by bringing the Burlington site online, the company will enhance its supply chain resilience, ensuring high-quality delivery to patients while aiming for international commercialization of MACI.

Vericel Corporation (NASDAQ:VCEL) is a fully-integrated, commercial-stage biopharmaceutical company specializing in advanced cell therapies for sports medicine and severe burn care markets.

While we acknowledge the potential of VCEL 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 VCEL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 10 Unstoppable Stocks That Could Double Your Money.

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