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5 Best Small-Cap Healthcare Stocks to Buy According to Hedge Funds

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In this article, we will list the 5 Best Small-Cap Healthcare Stocks to Buy According to Hedge Funds. Please visit 7 Best Small-Cap Healthcare Stocks to Buy According to Hedge Funds if you’d like to see an extended list and the methodology behind it.

5. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)

Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is one of the 7 best small-cap healthcare stocks to buy according to hedge funds.

On March 12, Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) announced that the Phase 3 Enh3ance study of DTX301, an experimental AAV8 gene therapy for the treatment of ornithine transcarbamylase deficiency, yielded favourable findings.

Iakov Filimonov/Shutterstock.com

DTX301-treated patients showed a statistically significant and clinically meaningful 18% decrease in 24-hour plasma ammonia compared to placebo at Week 36 of the randomised, double-blind, placebo-controlled phase of the trial. Throughout Week 36, the average ammonia AUC0-24 remained within the normal range.

Despite appropriate current medication treatment and dietary restriction, eight out of nine patients with abnormal ammonia AUC0-24 at baseline quickly reached normal ammonia levels, which were often maintained during this treatment period.

On March 12, JPMorgan reduced its price target on Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) from $120 to $74. The firm maintained an Overweight rating on the shares. JPMorgan noted that current share levels do not reflect meaningful value for key pipeline assets, including GTX-102.

It added that updated estimates also incorporate reduced expectations for setrusumab following a recent setback, while emphasizing that positive clinical data will be important to drive future upside.

Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) develops novel therapies, with a focus on identifying, acquiring, and commercializing products for rare and ultra-rare genetic diseases. It has a strong emphasis on gene therapy and covers various stages of clinical trials. The company is currently going through high cash burn with the aim of turning profitable from 2027 onwards.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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