Lovely people of blossom the moment (some of) you have been waiting for has finally arrived, thank you for waiting patiently for the mother of all research projects to drop. First I’ll give some context for the folks who are seeing this for the first time, I’m running an extensive research to go through the 13F filings of 11 small-cap, growth and biotech specialist hedge funds to track all new positions they’ve started, accumulated or exited in Q2, then I’m cross checking all names to find CLUSTERS of smart money behind specific companies, and finally I’m running a fundamentals analysis and catalyst dive to confirm positions I’m highly interested in following my self. It’s a massive research project that covered 754 companies in Q2 and you can get a little context on the project here: https://link.blossomsocial.com/7uYa/zhg3udgo Now let’s get to the juicy stuff you’ve all been waiting for The Clusters we found: 5-fund cluster —> 5 companies 4-fund cluster —> 17 companies 3-fund cluster —> 56 companies 2-fund cluster —> 154 companies For this specific post I’ll be focusing on the 5-fund cluster you can see the full list in the image and here is how to read the excel table. 🟢 NEW - dark green 🟢 ACC++ - major accumulation (>20%) 🟢 ACC - accumulated 🔵 HOLD - held unchanged 🟠 RED - reduced 🔴 RED– - major reduction 🔴 EXIT - fully exited Now this first wave of companies is obviously signaling VERY strong conviction from hedge funds during Q2, but the total funds invested are significantly smaller than those behind the companies in the 4-fund clusters. Without further Ado: $AXON Axon builds the entire technology ecosystem that police departments, security agencies, and increasingly private enterprises use to do their jobs. Most people know them as “the TASER company” - Q2 2026 revenue of $904M (+35% YoY) - 10th consecutive quarter > 30% growth. - Raised full-year 2026 revenue growth guidance to 32-34% - $15B in backlog bookings - Dedrone counter-drone surpassed $100M in quarterly revenue for the first time MAJOR Catalyst POV: - Counter-drone is exploding From near-zero to $100M+ quarterly. Drones are the new threat for airports, stadiums, military bases, and critical infrastructure. Axon is the market leader through Dedrone. - AI is a revenue accelerator, not a cost their Draft One tools saves officers 30-45 minutes per report. Departments pay extra for it. AI Era Plan revenue +700% proves the willingness to pay. Fundamentals: PASS —— $KRMN Karman makes the critical components that go INSIDE missiles, rockets, and defense systems, they are a major supplier to 80 of the defense primes including Lockheed and Northrop. - Q2 2026 revenue of $182M, up 58% YoY. - - Record backlog of $1.3B with nearly $500M in quarterly bookings - Expanding into European defense via Walker Precision acquisition - CEO confirmed the company is tracking 20-25% annual organic growth “for the foreseeable future,” stating “revenue could double in 3 to 4 years with potential inorganic growth accelerating that timeline.” MAJOR Catalyst POV: - Massive Backlog conversion potential through 2027+. They’re positioned as a critical subcomponent supplier across the entire US defense supply chain from missiles, hypersonics, submarines, to space launch, and UAS. - 200,000 sq ft Salt Lake City factory being fitted up with production capability online before end of 2026. Fundamentals: PASS —— $NAMS NewAmsterdam is developing obicetrapib, a once-daily oral pill that lowers LDL cholesterol (the “bad” kind) by an additional ~45-50% on top of whatever a patient is already taking. This one I considered a development stage company as it is still building up operating approval and generating little to no revenue. - Posted Net loss $(64.1)M - Strong runway of $678.3M cash + marketable securities MAJOR Catalysts: - I personally think this is the one they’re betting on: PREVAIL cardiovascular outcomes trial interim analysis. This is a 9,500+ patient study asking the ultimate question: does obicetrapib actually prevent heart attacks and strokes and if results are positive it would be breakthrough for the entire cardiovascular field. - European regulatory decision expected H2 2026. - US NDA filing, likely after PREVAIL data confirms outcomes benefit. Fundamentals: DID NOT PASS This is a bet on the probability of them getting obicetrapib approved after trials succeed (Think of it as the Cholesterol Pill That Could Prevent Heart Attacks!), which would deliver estimated sales of $3B-$5B, if it fails stock probably gets cut in half. ——— $RGEN Repligen sells the tools, systems, and consumables that pharmaceutical companies need to manufacture biological drugs at scale. - Q2 revenue of $204M, up 13% organic. - Proteins franchise surged 50%. - Raised full-year organic revenue growth guidance to 10.5%-13.5% and adjusted EPS to $2.03-$2.09. MAJOR Catalysts POV: - Cycle reversal: After the COVID vaccine boom, pharma companies had built up massive inventories of bioprocessing supplies. They stopped ordering, and Repligen’s growth collapsed. That cycle has now reversed. Proteins franchise surged 50% in Q2. Process Analytics grew over 30%. Emerging biotech revenue has grown high-teens for five straight quarters. The industry is restocking and expanding capacity again. - BioLife acquisition expected to close Q4 2026, expanding cell-therapy portfolio with at least $20M in first-year synergies. Fundamentals: NARROW PASS —— $MIRM Mirum develops and sells medicines for rare liver diseases, primarily in children and increasingly in adults who would previously have no medical alternative for some very tough symptoms. - LIVMARLI their approved medication generated $114M in Q1 net sales, up 55% YoY. - Full-year guidance raised to $680-700M. - Net loss $(67.2)M, EPS $(1.06) widening due to heavy R&D investments - ~87% product gross margin - negative FCF and high dilution to fund expansion This one has MANY catalysts stacked: Catalyst #1: Zilurgisertib PDUFA - Sep. 2026 FDA decision expected September 2026 for zilurgisertib in fibrodysplasia ossificans progressiva (FOP), an ultra-rare condition where soft tissue progressively turns into bone. If approved, Mirum plans a year-end 2026 US launch adding an entirely new disease and revenue stream. Catalyst #2: EXPAND Phase 3 - Q4 2026 The Phase 3 EXPAND study of LIVMARLI in additional rare cholestatic conditions is on track for top-line data in Q4 2026. This would expand LIVMARLI’s label beyond ALGS and PFIC into other cholestatic diseases. This opens up a new market approx. $1B in sales. Catalyst #3: AZURE-4 Data — Q4 2026 Hepatitis delta virus (HDV) data expected Q4 2026, on track for a potential BLA submission in H1 2027. HDV is a serious viral liver disease with no approved treatment. And many more catalysts on new rare medications in the pipeline, this one has massive potential in my view and could be the next ETON. (If you know me well enough you know what that means 🚀🚀🚀) Fundamentals: DID NOT PASS ——— Now where are you going to invest you own dollars Moe? Well, I picked 2 names from this round $KRMN and $MIRM price is right, entry point makes sense and both have an amazing array of catalyst that would most likely re-rate in the next 12-18 months. I’m also putting in $NAMS leap options as a lottery ticket if they do indeed approve a cure for heart attacks. That wraps up our first part of the Hedge Fund Hunt series folks! Hope you enjoyed it and are now even more excited to see the next even stronger, more investment allocated and much more diverse 4-fund cluster 🚀🚀🚀 If this doesn’t get a 100 likes at least after all the work I put in, I’m not sharing the rest! I’m kidding I’ll just settle for 50 likes 😅😅 Please follow my account if you are interested to see the rest of the list and full research. Have a lovely weekend everyone! Not financial advice, do your own research.
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11 Comments
Sam @snieuwold · 19h
Can’t wait to dig in to these names! KRMN looks right up my alley. I’m a bit gun shy of biotech and pharmaceutical names as I’ve been bitten before. And if I am reading into your other comment correctly, I’m really looking forward to your next post!
Richard Verhaeghe@ravonar · 21h
Holy smokes, that’s a great deep dive
Rob S@robs1255 · 17h
Great analysis Moe
Boom Boom@toetoe123 · 19h
Great post, Moe! I am also planning to add Krmn (and HWM). Space sector is volatile though.
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