Janus Henderson Investors, an investment management company, released its “Forty Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. shares increased following positive news about corporate earnings. Economic growth has remained relatively stable despite challenges such as a government shutdown, policy headwinds, and slower-than-expected employment growth. Excitement around artificial intelligence (AI) drove strong returns early in the quarter. However, concerns about valuations in late October led to declines in AI stocks. The Fund returned 0.27% In the fourth quarter, compared to the Russell 1000® Growth Index, which returned 1.12%. Stock selection in the healthcare and consumer staples sectors contributed to the performance, while the information technology and consumer discretionary sectors detracted. The Fund is optimistic about the market environment in 2026, supported by ongoing steady economic growth. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Janus Henderson Forty Fund highlighted Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) as one of its leading contributors. Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a biopharmaceutical company that focuses on delivering novel therapeutics for metabolic dysfunction. On March 26, 2026, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) closed at $518.76 per share. One-month return of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) was 20.08%, and its shares gained 58.22% over the past 52 weeks. Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) has a market capitalization of $11.9 billion.
Janus Henderson Forty Fund stated the following regarding Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) in its fourth quarter 2025 investor letter:
“Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) was another relative contributor. Madrigal has become a leader in the treatment of metabolic dysfunction-associated steatohepatitis (MASH), which is rapidly becoming one of the leading causes of liver failure in the U.S. Madrigal has seen very strong sales of Rezdiffra, the first FDA-approved medication for MASH that targets the accumulation of liver fat and inflammation. Sentiment around the drug has been positive, driven by strong physician adoption and payer reception trends.”
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 57 hedge fund portfolios held Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) at the end of the fourth quarter, up from 48 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 a list of most shorted biotech stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 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.
