We recently published an article titled Billionaire Nicholas J. Pritzker’s 8 Stocks with Huge Upside Potential. In this article, we are going to take a look at where Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) stands against Nicholas J. Pritzker’s other stock picks with huge upside potential.
Nicholas J. Pritzker is the chairman and co-founder of Tao Capital Partners, a San Francisco-based venture capital firm established in 2013. A prominent American entrepreneur and member of the influential Pritzker family, Nicholas Pritzker is widely recognized for his business acumen and leadership within both the family’s ventures and his own independent endeavors. He previously served as Chairman and CEO of the Hyatt Development Corporation and is associated with the Pritzker family’s substantial business interests, including ownership stakes in Hyatt Hotels and Conwood, a leading chewing tobacco company. His academic journey includes studies at Reed College, Lake Forest College, and the London School of Economics, followed by earning a J.D. from the University of Chicago.
At Tao Capital Partners, Pritzker oversees a firm that strategically focuses on investments in technology, transportation, healthcare, education, sustainable food, alternative energy, agriculture, consumer products, real estate, and hospitality. Although he holds the role of chairman, Nicholas Pritzker is not the portfolio manager of the firm. Instead, that position is held by Matthias Brachtel, who is responsible for managing the firm’s investment portfolio and making critical financial decisions. Under their leadership, Tao Capital has established a reputation for backing innovative and sustainable ventures, emphasizing long-term positive impacts alongside financial returns.
Tao Capital Partners follows a disciplined investment philosophy, targeting sectors poised for growth and transformation. The firm’s investments include companies within the technology and transportation industries, as well as those focused on healthcare, education, sustainable food, and clean energy solutions. This diversified approach reflects the firm’s commitment to not only achieving financial gains but also fostering advancements in critical global sectors.
As of Q4 2024, Tao Capital Partners reported managing $143.28 million in 13F securities across ten core holdings. The firm’s commitment to sustainable and impactful investment aligns with Nicholas Pritzker’s broader vision of leveraging capital to drive positive change. Pritzker’s guidance continues to shape the firm’s strategic direction, while Matthias Brachtel’s portfolio management expertise ensures the optimization of returns within the chosen sectors. Through a combination of innovative vision and practical financial management, Tao Capital Partners continues to build a diverse portfolio aimed at fostering sustainable growth.
Our Methodology
For this article, we searched through Tao Capital’s Q4 2024 13F filings to identify billionaire Nicholas J. Pritzker’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 2% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A scientist examining the results of a Phase III clinical trial for non-alcoholic steatohepatitis.
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)
Number of Hedge Fund Holders as of Q4: 40
Tao Capital’s Equity Stake: $40.28 Million
Upside Potential as of May 8: 41.96%
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a biopharmaceutical company dedicated to developing novel therapies for metabolic dysfunction-associated steatohepatitis (MASH), a severe liver disease with significant unmet medical need. The company’s flagship product, Rezdiffra, has shown strong commercial performance since its FDA approval in March 2024, becoming the first approved therapy for F2-F3 MASH in the U.S.
In the first quarter of 2025, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) reported net revenues of $137.3 million, marking significant growth as no product sales were recognized during the same period last year. This revenue increase was primarily driven by Rezdiffra’s market penetration, which saw more than 17,000 patients on the treatment as of March 31, 2025. Rezdiffra generated $137 million in net sales during Q1, reflecting a 33% sequential increase compared to the previous quarter, highlighting its rapid adoption in the MASH treatment landscape.
Despite the strong revenue performance, the company’s operating expenses also rose, totaling $216.6 million in Q1 2025 compared to $152.0 million in the prior-year period. This increase reflects ongoing commercialization efforts and the expansion of Rezdiffra’s reach within the market. As of March 31, 2025, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) maintained a strong liquidity position, with cash, cash equivalents, and marketable securities amounting to $848.1 million.
Madrigal’s continued focus on addressing a high unmet need within liver disease, coupled with Rezdiffra’s impressive commercial uptake, positions the company well for long-term growth. The increase in patient numbers and sustained revenue trajectory underline the drug’s market potential, reinforcing Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)’s strategic position within the biopharmaceutical sector.
Overall MDGL ranks 3rd among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential. While we acknowledge the potential of MDGL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MDGL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
