5 Best Russell 2000 Stocks To Buy According To Hedge Funds

In this article, we discuss 5 best Russell 2000 stocks to buy. If you want to read our discussion on the Russell 2000 index and overall stock market performance, head directly to 16 Best Russell 2000 Stocks To Buy According To Hedge Funds. 

5. Vaxcyte, Inc. (NASDAQ:PCVX)

Number of Hedge Fund Holders: 39

Vaxcyte, Inc. (NASDAQ:PCVX) is a clinical-stage biotechnology vaccine company focused on developing novel protein vaccines to prevent and treat bacterial infectious diseases. The company’s lead vaccine candidate is VAX-24, a 24-valent pneumococcal conjugate vaccine designed to prevent invasive pneumococcal disease. Vaxcyte, Inc. (NASDAQ:PCVX) is one of the top Russell 2000 stocks to invest in. 

On January 30, Vaxcyte, Inc. (NASDAQ:PCVX) initiated an underwritten public offering of its common stock and pre-funded warrants. The company plans to provide the underwriters with a 30-day option to acquire up to an additional 15% of the offered shares of its common stock in the public offering.

According to Insider Monkey’s fourth quarter database, 39 hedge funds were bullish on Vaxcyte, Inc. (NASDAQ:PCVX), compared to 34 funds in the prior quarter. Peter Kolchinsky’s RA Capital Management is the leading stakeholder of the company, with 7.9 million shares worth $495.5 million. 

4. Super Micro Computer, Inc. (NASDAQ:SMCI)

Number of Hedge Fund Holders: 40

Super Micro Computer, Inc. (NASDAQ:SMCI) ranks 4th on our list of the best Russell 2000 stocks. The company specializes in developing and manufacturing high-performance server and storage solutions with modular and open architecture. On January 29, Super Micro Computer, Inc. (NASDAQ:SMCI) announced financial results for its second quarter of fiscal year 2024 ended December 31, 2023. The company reported a non-GAAP EPS of $5.59 and a revenue of $3.66 billion, outperforming Wall Street estimates by $0.43 and $400 million, respectively. 

According to Insider Monkey’s fourth quarter database, 40 hedge funds were long Super Micro Computer, Inc. (NASDAQ:SMCI), compared to 41 funds in the prior quarter. Richard Driehaus’ Driehaus Capital is the largest stakeholder of the company, with 446,128 shares worth $126.8 million. 

3. Chord Energy Corporation (NASDAQ:CHRD)

Number of Hedge Fund Holders: 40

Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company based in Houston, Texas. The company is engaged in acquiring, exploiting, developing, and exploring for crude oil, natural gas, and natural gas liquids in the Williston Basin. On February 22, Chord Energy Corporation (NASDAQ:CHRD) declared a $1.25 per share quarterly dividend, in line with previous. The dividend is payable on March 19, to shareholders on record as of March 5. It is one of the best Russell 2000 stocks to invest in. 

According to Insider Monkey’s fourth quarter database, 40 hedge funds held stakes in Chord Energy Corporation (NASDAQ:CHRD), compared to 38 funds in the last quarter. Christian Zann’s Sourcerock Group is the largest stakeholder of the company, with 637,751 shares worth $106 million. 

Madison Small Cap Fund stated the following regarding Chord Energy Corporation (NASDAQ:CHRD) in its fourth quarter 2023 investor letter:

“After carefully scouring the landscape for almost two years, we initiated a new position in Energy company Chord Energy Corporation (NASDAQ:CHRD). Chord is an exploration and production company and the product of a recent merger between Oasis and Whiting Petroleum. We have history as shareholders in the past in Whiting Petroleum and new management has already demonstrated its commitment to a shareholder return business model. We think the return to a single basin operating model plays to CHRD’s strength, as it enables the company to fully take advantage of its scale and size in the Bakken. The company is in a strong position to capitalize on upcoming value-enhancing opportunities in terms of basin consolidation, and so we expect CHRD to generate significant free cash flow over the next three years to fund an attractive 3% plus dividend yield. As we discussed earlier, Energy underperformed meaningfully in 2023 and so we exploited this opportunity to make our first energy investment in several years. We believe CHRD can generate positive economic returns with oil above $55, giving us a significant downside cushion to the commodity. From a portfolio perspective, we like the hedge Chord provides in a volatile geopolitical climate. Finally, Chord’s strong position in the Bakken makes it an attractive takeover target for larger integrated energy companies.”

2. Intra-Cellular Therapies, Inc. (NASDAQ:ITCI)

Number of Hedge Fund Holders: 42

Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) is a biopharmaceutical company focused on the discovery, clinical development, and commercialization of small molecule drugs primarily targeting intracellular signaling mechanisms in the central nervous system. Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) is one of the top Russell 2000 stocks to monitor. On February 22, the company reported a Q4 GAAP EPS of -$0.30, beating market consensus by $0.15. The revenue increased 50.2% year-over-year to $132 million, but fell short of Street estimates by $3.67 million. 

According to Insider Monkey’s fourth quarter database, 42 hedge funds were bullish on Intra-Cellular Therapies, Inc. (NASDAQ:ITCI), compared to 37 funds in the last quarter. Kurt Von Emster’s VenBio Select Advisor is the biggest stakeholder of the company, with 2.25 million shares worth $161.5 million. 

TimesSquare Capital made the following comment about Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) in its Q3 2022 investor letter:

“Slipping by -18% was Intra-Cellular Therapies, Inc. (NASDAQ:ITCI), which develops small molecule treatments for neurological disorders. The company reported revenues that were better than expected, though earnings were lower. There was an acceleration of sales for Caplyta, a treatment for schizophrenia and bipolar depression. However, some investors appeared concerned that as Caplyta volumes increased to a higher level that the rate of growth would slow. We view the projected growth trajectory positively, as well as Caplyta’s potential for use in other indications, so we added to our position.”

1. Cytokinetics, Incorporated (NASDAQ:CYTK)

Number of Hedge Fund Holders: 66

Cytokinetics, Incorporated (NASDAQ:CYTK) ranks 1st on our list of the best Russell 2000 stocks. It is a late-stage biopharmaceutical company focusing on the discovery, development, and commercialization of muscle activators and inhibitors for treatments of debilitating diseases. The recent decline in Cytokinetics, Incorporated (NASDAQ:CYTK) shares, linked in part to the announcement of the departure of its chief financial officer recently, is seen as a buying opportunity by Truist analyst Srikripa Devarakonda. The analyst assigned Cytokinetics, Incorporated (NASDAQ:CYTK) stock a Buy rating and an $86 price target. 

According to Insider Monkey’s fourth quarter database, 66 hedge funds were bullish on Cytokinetics, Incorporated (NASDAQ:CYTK), up from 34 funds in the earlier quarter. Christopher Medlock James’ Partner Fund Management is the biggest stakeholder of the company, with 1.75 million shares worth $146.70 million. 

Carillon Eagle Small Cap Growth Fund stated the following regarding Cytokinetics, Incorporated (NASDAQ:CYTK) in its fourth quarter 2023 investor letter:

“Cytokinetics, Incorporated (NASDAQ:CYTK) is a clinical-stage biopharmaceutical company focusing on the discovery and development of therapeutic agents that modulate muscle function for the treatment of diseases and medical conditions. The company reported success in clinical trials for Aficamten, a treatment for symptomatic obstructive hypertrophic cardiomyopathy. Investors are optimistic about the prospects for this medication, which could turn out to be a safer, more effective alternative to the current market leader.”

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