Flagship Watchlist
The lists that follow are the product of applying Verdad's quantitative framework to the current universe of clinical-stage and development-phase biotech names.
The methodology does not require an opinion about which molecule is going to work or which trial is going to succeed. It requires only that we identify where the smart money is moving and where the people closest to the science are putting their own capital at risk. (You can read more about the biotech watchlist in my first email about it.)
Two distinct lists emerge from that process, and they are worth understanding separately before you look at the names.
The first list contains stocks that Verdad and Associates is actually buying in the current period, combined with names showing recent institutional add-on buying or insider purchasing activity.
These are the highest-conviction signals in the framework. When a biotech-specialist firm with a documented track record is actively adding to a position and someone inside the company is buying shares on the open market simultaneously, that is a meaningful convergence of informed opinion.
These names represent the sharpest edge of the screen.
The second list casts the net somewhat wider. These are companies held by multiple biotech-specialist funds with strong historical track records in the space, where recent insider buying or institutional add-on activity has occurred in at least one qualified holder.
The logic here is that cross-ownership among specialist funds with different research teams and different investment processes, combined with insider activity, suggests a degree of consensus that the generalist investor would find difficult to replicate independently.
Neither list is a recommendation to buy any specific name. Both lists are offered as a starting point for your own research, sized appropriately as the speculative allocation it is.
As I’ve mentioned before, this method is backtested, and it works. Really works.
I’m excited.
So let’s get to the two lists of promising biotech stocks, updated as of 6/30/2026:
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