Do You Believe in the Upside Potential of Madrigal Pharmaceuticals (MDGL)?

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global markets saw an incredible but volatile second quarter, shifting from deep declines to strong gains. In the quarter, its Investor Class fund ARTSX returned 7.30%, Advisor Class fund APDSX posted a return of 7.33%, and Institutional Class fund APHSX returned 7.36%, compared to a return of 11.97% for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its second-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks such as Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL). Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a biopharmaceutical company. The one-month return of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) was 40.97%, and its shares gained 62.11% of their value over the last 52 weeks. On August 22, 2025, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) stock closed at $414.68 per share, with a market capitalization of $9.243 billion.

Artisan Small Cap Fund stated the following regarding Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) in its second quarter 2025 investor letter:

“Notable buys in the quarter included BWX Technologies, Wingstop, and Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL). Madrigal Pharmaceuticals is a commercial-stage biotechnology company focused on treating metabolic dysfunction-associated steatohepatitis (MASH), a serious liver disease with high unmet medical need. Madrigal’s lead drug, RezdiffraTM, is the first and only FDA-approved medication to target liver fibrosis, demonstrating high efficacy with minimal side effects. Given the significant failure rates of previous treatments for this condition, we are confident in the company’s ability to maintain a competitive edge and further differentiate itself in the market. Additionally, there is potential to expand its application to more advanced stages of liver fibrosis.”

Is Madrigal Pharmaceuticals, Inc. (MDGL) The Most Expensive Stock Insiders Are Dumping In March?

A scientist examining the results of a Phase III clinical trial for non-alcoholic steatohepatitis.

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) at the end of the second quarter, which was 46 in the previous quarter. While we acknowledge the risk and potential of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) and shared the list of best biotech stocks to buy according to billionaire Steve Cohen. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.