12 Best Performing Small Cap Stocks So Far in 2025

5. GH Research (NASDAQ:GHRS)

Number of Hedge Fund Holders: 9

Year-to-Date Performance as of February 17: 104.43%

GH Research (NASDAQ:GHRS) develops therapies for psychiatric and neurological disorders. It focuses on 5-Methoxy-N,N-Dimethyltryptamine (5-MeO-DMT) treatments. Its lead program, GH001 (inhalable mebufotenin), is in Phase 2 clinical trials for treatment-resistant depression, bipolar II disorder, and postpartum depression. It’s also developing GH002 (intravenous) and GH003 (intranasal) mebufotenin candidates.

In the Phase 2b trial (GH001-TRD-201), there was an improvement in patients receiving GH001 compared to those receiving a placebo. Specifically, patients on GH001 showed a 15.5-point reduction in their depression scores within 8 days (a statistically significant result). Furthermore, over half of the patients on GH001 experienced a remission of their depression, while none of the patients on the placebo did. Looking further out, a large percentage of patients who continued the treatment remained in remission six months later. These positive results drove the company’s stock to rise sharply in 2025.

GH001 was well-tolerated, with no serious adverse events in the double-blind phase, and mild-to-moderate treatment-emergent adverse events. The company completed enrollment of the double-blind phase in Q3 2024 and is progressing with the open-label extension. As of September 30, 2024, it had $193.8 million in cash, cash equivalents, other financial assets, and marketable securities.