CG Oncology (CGON) Rallied on Pivotal Clinical Results

Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 investor letter for “Meridian Small Cap Growth Fund”. A copy of the letter is available to download here. The US equities market started 2026 with volatility driven by trade policy uncertainty and heightened geopolitical risks. Initial gains were attributed to confidence in domestic companies and the Federal Reserve easing. However, sentiment deteriorated following increased tariffs and military strikes by the U.S. and Israel against Iran. During the quarter, Meridian Small Cap Growth Fund returned -8.37% compared to the Russell 2000 Growth Index’s -2.82% return. The Fund’s relative underperformance was driven by industry allocation effects, while stock selection contributed positively. Despite the market environment, the fund prioritizes high-quality businesses characterized by durable competitive advantages, robust balance sheets, and a clear outlook for sustainable earnings growth. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Meridian Small Cap Growth Fund highlighted stocks like CG Oncology, Inc. (NASDAQ:CGON). CG Oncology, Inc. (NASDAQ:CGON) is a late-stage clinical biopharmaceutical company specializing in developing cretostimogene grenadenorepvec for patients with bladder cancer. On April 20, 2026, CG Oncology, Inc. (NASDAQ:CGON) closed at $70.40 per share. One-month return of CG Oncology, Inc. (NASDAQ:CGON) was 10.28%, and its shares gained 243.75% over the past 52 weeks. CG Oncology, Inc. (NASDAQ:CGON) has a market capitalization of $5.94 billion.

Meridian Small Cap Growth Fund stated the following regarding CG Oncology, Inc. (NASDAQ:CGON) in its Q1 2026 investor letter:

“CG Oncology, Inc. (NASDAQ:CGON) is a clinical-stage biotechnology company developing oncolytic immunotherapies for bladder cancer. The company targets non-muscle invasive bladder cancer, a large and underserved market where existing treatments carry significant side-effect profiles, positioning its lead candidate as a differentiated therapeutic alternative. Shares advanced sharply following the release of pivotal clinical data that exceeded expectations, reinforcing the competitive potential of the company’s lead program. The strong efficacy signals drove renewed investor interest and positioned the company favorably ahead of key regulatory milestones that could further unlock value.”

CG Oncology, Inc. (NASDAQ:CGON) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held CG Oncology, Inc. (NASDAQ:CGON) at the end of the fourth quarter, up from 34 in the previous quarter. While we acknowledge the potential of CG Oncology, Inc. (NASDAQ:CGON) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.