10 Largest Biotech Hedge Funds and Their Top Stock Picks

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1. Nuvalent, Inc. (NASDAQ:NUVL)

Number of Hedge Fund Investors  in Q2 2024: 29

Deerfield Management’s Q2 2024 Investment Stake: $1.5 billion

Nuvalent, Inc. (NASDAQ:NUVL) is a small, pre commercial stage biotechnology company based in Cambridge, Massachusetts. It is developing treatments for cancer, tumors, and nervous system disorders. Its lead candidate is the NVL-655 drug, which aims to target small cell lung cancer and tumors. This drug is currently in Phase 1 trial, and estimates suggest that if all goes well, then Nuvalent, Inc. (NASDAQ:NUVL) could launch the product in 2026 and continue with additional treatments until 2029. This means that any outcomes of the undergoing trials will be make or break events for the firm’s stock especially since the firm does not generate any revenue. Nuvalent, Inc. (NASDAQ:NUVL) is also developing another drug for lung cancer. This drug is called zidesamtinib, and it is further ahead in the development pipeline with Phase 2 enrollment currently ongoing. The firm’s stock jumped by 4.4% in September, when it revealed that NVL-655 trials had shown market competitive median response rates for patients that had already tried other cancer treatments.

NUVL leads the pack when it comes to top biotech hedge funds’ top biotech stocks. But our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NUVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None.

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