In this article, we will look at the 13 Best Mid Cap Growth Stocks to Buy According to Hedge Funds.
On August 26, Courtney Garcia, Payne Capital Management senior wealth advisor, joined CNBC television for an interview to discuss whether investors should continue buying in the current market scenario. She believes that the investors should continue buying stocks because the economy remains fundamentally strong. Gracia highlighted that inflation is coming down and there is a general optimism that interest rates will fall, too, which is benefiting the stock market.
Moreover, the earnings have remained strong, with the current earnings season showing that the profit margins rose 13.5% last quarter. She believes that this is impressive growth given the inflation and tariff uncertainty. This also points to the fact that companies are fundamentally strong and that the consumers are also on a strong footing. Garcia expects that if interest rates drop, more sidelined cash could enter the market, helping stocks rally further.
Regarding the labor market, Gracia believes that the market remains tight with a slow hiring rate. However, there have not been many layoffs, and the wage inflation is also helping consumers maintain spending power. She noted that, as there are no signs of a recession, the current labor market conditions support her thesis of buying the dips and staying invested in the market.
With that, let’s take a look at the 13 best mid cap growth stocks to buy according to hedge funds.
Our Methodology
To curate the list of 13 best mid cap growth stocks to buy according to hedge funds, we used the Finviz Stock Screener, Yahoo Finance, and Insider Monkey’s Q2 2025 hedge funds database. Using the screener, we aggregated a list of mid-cap growth stocks (market cap between $2 billion – $10 billion). Next, we cross-checked the market capitalization from Yahoo Finance and ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey’s database.
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).
13 Best Mid Cap Growth Stocks to Buy According to Hedge Funds
13. Halozyme Therapeutics, Inc. (NASDAQ:HALO)
Market Capitalization: $8.4 billion
Number of Hedge Fund Holders: 40
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 5, Halozyme Therapeutics, Inc. (NASDAQ:HALO) released its fiscal second quarter results for 2025 and raised its financial guidance for the year. The Wall Street analysts have been bullish on the stock, and the stock price has surged more than 20% since the announcement.
Recently, on August 17, Morgan Stanley analyst Sean Laaman raised the firm’s price target on Halozyme Therapeutics, Inc. (NASDAQ:HALO) from $75 to $80, while maintaining a Buy rating on the stock. He noted that the company raised the revenue and EPS guidance, after which the revenue is now expected to be 11% higher than the initial guidance, whereas the EPS is expected to be 20% higher. Management raised the forecasts due to strong sales from partnered products and good cost control.
Although the company has not yet disclosed its long-term outlook for 2026 to 2028, the analyst believes that the outlook will improve, driven by key products.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) develops drug delivery technology to improve how medicines are given to patients. Their main product is ENHANZE, which helps drugs to be injected under the skin more quickly and easily.
12. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)
Market Capitalization: $6.771 billion
Number of Hedge Fund Holders: 40
Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 20, Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) announced that the FDA had accepted its supplemental New Drug Application for setmelanotide to treat acquired hypothalamic obesity. Wall Street has shown bullish sentiment regarding the announcement.
Later on the same day, Michael Ulz from Morgan Stanley reiterated a Buy rating on Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) with a price target of $109. He noted that the application targets acquired hypothalamic obesity and has been granted Priority Review. This shows a strong need for new treatments in this area.
Moreover, the analyst highlighted that the Phase 3 data from the TRANSCEND study were positive and showed significant reductions in BMI and a good safety profile. Management has noted that the European Medicines Agency is also reviewing the drug, which could lead to approval in Europe.
Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is a biopharmaceutical company developing precision medicines for rare genetic obesity disorders.