5 Micro-Cap Stocks to Buy According to Hedge Funds

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In this article, we will discuss 5 micro-cap stocks to buy according to hedge funds. If you want to read our detailed discussion on investing in micro-cap stocks, go directly to 10 Micro-Cap Stocks to Buy According to Hedge Funds.

5. Ardelyx, Inc. (NASDAQ:ARDX)

Number of Hedge Fund Holders: 20

Market Capitalization: $108.28 million

Ardelyx, Inc. (NASDAQ:ARDX) is a biopharmaceutical company. The Fremont, California-based company has Tenapanor as its lead candidate in the FDA approval pipeline. The drug is targeted towards the control of serum phosphorus in adults on dialysis due to chronic kidney diseases (CKD).

The company has a firm belief that Tenapanor can be used for all patients on dialysis and suffering from a high level of phosphorus in the blood. This condition is known as hyperphosphatemia. The drug will control the excess phosphorus in the blood, which can be revolutionary in the treatment protocol of CKD. Ardelyx, Inc. (NASDAQ:ARDX) also has a program aimed towards developing drugs that can control the levels of potassium in the blood, known as RDX013.

Of the 873 elite funds being tracked by Insider Monkey, 20 funds reported owning a stake worth $241.1 million in Ardelyx, Inc. (NASDAQ:ARDX) at the end of Q2 2021, up from 17 hedge funds having a stake worth $192.8 million in the preceding quarter.

To further improve its liquidity, Ardelyx, Inc. (NASDAQ:ARDX) entered into a sales agreement with Jefferies on August 16 which entails an “at-the-market offering” of common stock worth $150M. Ardelyx, Inc. (NASDAQ:ARDX) plans to utilize the proceeds from this deal to expand its working capital, support research and development, and capital expenditures, among other things.

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