Mid-cap stocks are demonstrating strong momentum and notable market resilience after lagging large-cap stocks in recent years. A fundamental change is in play as the S&P 400, which tracks mid-sized US companies, is up about 14% for the year, outperforming the broader index, which is up about 9%.
The outperformance has come amid robust earnings growth, which has strengthened investor confidence. Additionally, mid-cap stocks stand out because of their established business models and expansive market opportunities.
According to Oppenheimer’s 2026 market outlook, high-quality mid-cap stocks “have less debt and are less burdened by higher borrowing costs” and can “better navigate tariffs by passing through price increases or shifting supply chains.”
Goldman Sachs, in its 2026 outlook, reiterated that deal-making will be one of the catalysts driving small- and mid-cap stocks. The investment bank expects private equity activity and strategic corporate acquisitions to accelerate, with mid-cap stocks as the primary hunting ground due to compressed valuations and a permissive regulatory environment.
While large-cap stocks have dominated the investment landscape over the past 10 years, it’s becoming increasingly clear that it’s time to broaden bets to other parts of the capitalization spectrum. High-quality mid-cap stocks are increasingly providing compelling investment opportunities on the risk-reward front.
Against this backdrop, lets take a look at some mid-cap stocks to own for decades according to hedge funds.
Our Methodology
To create the list of the 10 Best Mid Cap Stocks to Buy According to Hedge Funds, we used the Finviz and Yahoo Stock Screener to identify a broad selection of US-listed mid cap companies. We defined a midcap company as one with a market capitalization between $2 billion and $10 billion. Next, we settled on mid-cap stocks with upside potential of more than 30% and are popular among elite hedge funds. The list is presented in ascending order of their hedge fund holdings.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Top 10 Mid Cap Stocks to Own for Decades According to Hedge Funds
10. VinFast Auto Ltd. (NASDAQ:VFS)
Market Capitalization: $7.23 Billion
Stock Upside Potential: 76.28%
Number of Hedge Fund Holders: 4
VinFast Auto Ltd (NASDAQ:VFS) is one of the top mid-cap stocks to own for the long term, according to hedge funds. On June 18, VinFast Auto Ltd (NASDAQ:VFS) confirmed the availability of its VF 8 electric SUV across the United States.
The base Eco trim will retail for $39,900, while the Plus trim will retail for $44,900. VinFast is targeting families that want a capable, quiet, and well-equipped electric SUV with the new model. The VF8 comes with a 116.1-inch wheelbase to compete equally in the D-SUV segment. In its cabin rear passengers can sit upright without negotiating legroom. It also comes with an intuitive head-up display that projects key information directly onto the windshield.
Earlier, on June 10, VinFast announced domestic deliveries of 19,503 electric vehicles in May. Year to date the company has delivered 97,961 EVs in Vietnam affirming its dominance in the domestic market even as it eyes growth on the international scene. The Limo Green and the VF 3 are the company’s two best-selling models in Vietnam, with cumulative deliveries of 24,059 and 20,231 vehicles, respectively.
VinFast Auto Ltd. (NASDAQ:VFS) is a global automotive manufacturer specializing in the research, development, and production of smart electric vehicles (EVs), including battery-electric cars, electric motorbikes/scooters, and e-bikes.
9. D-Wave Quantum Inc. (NYSE:QBTS)
Stock Upside Potential: 59.54%
Number of Hedge Fund Holders: 26
D-Wave Quantum Inc. (NYSE:QBTS) is one of the top mid-cap stocks to own for decades, according to hedge funds. On June 30, D-Wave Quantum Inc. (NYSE:QBTS) was selected to receive a $1.57 million grant from the US National Science Foundation.
The $1.57 million grant supports the company’s participation in ERASE, a project developing technologies for fault-tolerant quantum computing. The program brings together researchers and industry organizations to advance the dual-rail gate model for quantum computing hardware, software, and applications.
Under the terms of the agreement, D-Wave Quantum is to provide access to its dual-rail gate model quantum computing technology. Erase researchers can access D-Wave Quantum’s platform through selected development interfaces.
D-Wave Quantum has already confirmed a letter of intent for $100 million in proposed CHIPS and Science Act funding to develop annealing- and gate-model quantum computing systems. The project is poised to extend the company’s relationship with Yale University, which is also spearheading the ERASE program.
D-Wave Quantum Inc. (NYSE:QBTS) builds and delivers quantum computing systems, software, and cloud services designed to solve complex computational problems. It is the first commercial supplier of quantum computers and uses a dual-platform approach spanning both annealing and gate-model technologies.
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