7. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)
Number of Hedge Fund Holders: 30
Market Capitalization: $2.41 billion
Share Price: $4.05
Recursion Pharmaceuticals, Inc. (NASDAQ: RXRX) gives investors exposure to artificial intelligence in drug discovery, with a business built around using large biological datasets and computational tools to identify potential medicines. Its stock had gained more than 20% over the preceding six months, according to the supplied material, despite relatively flat performance for 2026 overall.
The investment story increasingly depends on what that technology produces in clinical development. REC-4881, an investigational MEK1/2 inhibitor for familial adenomatous polyposis, has delivered encouraging findings. An October update reported a median 47% reduction in polyp burden after 12 weeks of treatment in the expanded adult study population.
REC-1245 provides another clinical program to watch. The investigational RBM39 degrader is being studied in advanced solid tumors, giving the company a separate opportunity to demonstrate that its discovery platform can generate useful treatment candidates.
Partnership progress has also provided tangible financial support. On October 15, a pharmaceutical collaborator exercised an option on an immunology development candidate, triggering a $10 million milestone payment. Further development and commercialization would be led and funded by the partner, with additional milestone and royalty opportunities remaining conditional.
The company also announced a $200 million offering alongside its October clinical update, projecting cash runway into 2029 after incorporating the proceeds. Additional financing strengthens development capacity, although issuing shares dilutes existing ownership.
Morgan Stanley raised its price target to $5.90 from $5.30 on October 16 while maintaining an Equal Weight rating.
Ranking rationale: Recursion Pharmaceuticals, Inc. (NASDAQ: RXRX) ranks seventh with 30 hedge-fund holders. Its AI-enabled discovery platform, advancing clinical programs, and partnership payments support inclusion, while its position in the countdown follows ownership count rather than a forecast of investment returns.
