Madrigal Pharmaceuticals (MDGL) Surged Following the Strong Launch and Execution of New Drug

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equities hit a record high in the third quarter, fueled by continued gains in technology and falling bond yields. Easing tariff rhetoric and renewed AI infrastructure investments boosted large tech stocks. In mid-September U.S. Federal Reserve lowered rates by 25 basis points. Against this backdrop, the fund returned -1.78% (net) compared to the Russell 2500 Growth Index’s 10.73% return. Sector positioning and the avoidance of names that do not meet the firm’s strict investment discipline led to the underperformance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Meridian Growth 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 44.78%, and its shares gained 87.41% of their value over the last 52 weeks. On November 28, 2025, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) stock closed at $596.98 per share, with a market capitalization of $13.558 billion.

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

“Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a commercial-stage biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), a non-alcoholic liver disease with a high unmet medical need. The stock performed well on evidence of a very strong commercial launch and execution of Rezdiffra, a new drug therapy that has put Madrigal on an annualized pace for more than $1 billion in new sales this year. With U.S. market penetration in the single digits, the therapy has the potential to grow into a multi-billion-dollar blockbuster over time. In addition, the company in-licensed an oral GLP-1 drug, and additional therapies in the pipeline also show promise of incremental growth. During the period, we trimmed our position as the share price appreciated, based on our valuation discipline.”

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, 48 hedge fund portfolios held Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) at the end of the third quarter, up from 47 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 Artisan Small Cap Fund’s views on the company. 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.