5 Best-Performing Small-Cap Stocks of 2022

4. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)

Number of Hedge Fund Holders: 16

YTD Share Price Gain as of October 3: 121.37%

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) was founded in 2008 and is headquartered in Boston, Massachusetts. It is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutics for rare genetic diseases of obesity. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) offered a public offering of 4.8 million units of its common stock priced at $26.00 per share. The offering closed on September 19, 2022. As of October 3, the stock has gained more than 121% year-to-date, which makes it one of the best-performing small-caps of 2022. 

On August 7, Goldman Sachs analyst Corinne Jenkins upgraded Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) to Buy from Neutral with a $28 price target, citing a high probability of clinical success in its Hypothalamic Obesity trial. 

According to Insider Monkey’s data, 16 hedge funds were long Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) at the end of the second quarter of 2022, compared to 14 funds in the last quarter. Peter Kolchinsky’s RA Capital Management is the largest stakeholder of the company, with 4.8 million shares worth $20.2 million.