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

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities continue to rally in the third quarter, the period with double-digit YTD gains. Major US indices like Russell 1000®, Russell Midcap®, and Russell 2000® reached record highs in the period. In the quarter, the fund’s Investor Class fund ARTSX returned 8.69%, Advisor Class fund APDSX posted a return of 8.75%, and Institutional Class fund APHSX returned 8.73%, compared to a return of 12.19% 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 third-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 28.70%, and its shares gained 76.15% of their value over the last 52 weeks. On November 17, 2025, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) stock closed at $553.42 per share, with a market capitalization of $12.569 billion.

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

“We also added to Loar Holdings, Installed Building Products and Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) during the quarter. Madrigal Pharmaceuticals is a commercial-stage biotech company focused on treating metabolic dysfunction-associated steatohepatitis (MASH)—a serious liver disease with significant unmet need— through its lead drug, Rezdiffra™. As the first and only FDA-approved treatment for MASH with moderate to advanced fibrosis (F2–F3), Rezdiffra offers clinically meaningful efficacy and a favorable safety profile. During the quarter, we increased our position in Madrigal Pharmaceuticals to a small CropSM, driven by the successful launch of its F2–F3 therapy and effective execution in pricing negotiations with insurers. With an active sales force and growing market presence, we have increasing confidence in Madrigal’s ability to serve the F4 MASH (compensated cirrhosis) patient population, pending future approval of its therapy for that stage.”

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

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) at the end of the second quarter, up from 46 in the previous quarter. In the third quarter of 2025, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) reported net sales of $287 million, up 35% quarter-over-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 most shorted stocks. In addition, please check out our hedge fund investor letters Q3 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.