5 Best Upside Stocks to Buy According to Hedge Funds

4. Dyne Therapeutics Inc. (NASDAQ:DYN)

Average Upside Potential: 90.73%

Number of Hedge Fund Holders: 51

Dyne Therapeutics Inc. (NASDAQ:DYN) is one of the best upside stocks to buy according to hedge funds. On June 17, Dyne Therapeutics expanded its senior secured term loan facility with Hercules Capital to up to $400 million, increasing financial flexibility. This amendment includes an immediate $50 million funding and provides additional tranches tied to specific clinical and regulatory milestones. These funds will support the advancement of the company’s lead candidates, z-rostudirsen for Duchenne muscular dystrophy and z-basivarsen for myotonic dystrophy type 1.

The expanded partnership strengthens Dyne’s balance sheet as it prepares for two potential US commercial launches over the next two years. By securing non-dilutive capital, the company aims to maintain momentum in its mission to deliver functional improvements for patients with rare neuromuscular diseases. The agreement reflects Hercules Capital’s continued support for Dyne’s clinical progress and transformative development stage.

To date, Dyne Therapeutics Inc. (NASDAQ:DYN) has borrowed a total of $200 million under the facility and maintains access to an additional $200 million in potential future funding. This arrangement provides the capital necessary to reach key milestones while optimizing the company’s financial position. The collaboration highlights a shared commitment to accelerating the delivery of innovative treatments to patients in need.

Dyne Therapeutics Inc. (NASDAQ:DYN) engages in developing innovative life-transforming therapies for genetically driven muscle diseases. It develops a broad portfolio of therapeutics for muscle diseases, including lead programs in myotonic dystrophy type 1, Duchenne muscular dystrophy, and facioscapulohumeral muscular dystrophy.