In this article, we will take a look at the 9 Best Gene-Editing Stocks to Buy According to Hedge Funds.
Genetic manipulation – or gene editing – is a concept that describes altering the genetic material (DNA) of an organism. This concept was merely a theory for many years until the 1970s, when scientists were able to create recombinant DNA (rDNA) molecules. Fast-forward to the 2010s, and the CRISPR-Cas9 system mainstreamed gene editing, inspiring a commercialization boom. The first CRISPR-related company IPO’ed on NASDAQ in February 2016, and since then, the industry has grown in vibrancy and has attracted billions of investor dollars.
According to the Crispr Report, there were 1,031 active companies in the CRISPR ecosystem, 298 of which have raised about $35.8 billion over 1,200 funding rounds. And in terms of industry size, Research and Markets puts it at $10.8 billion by year-end 2025. The research firm estimates that the industry will expand at a 16.9% CAGR between 2025 and 2030, putting the valuation at nearly $24 billion in 2030.
And even with all that potential, Ark Invest’s Cathie Wood thinks that the gene editing space has much more to give, which hasn’t been discovered yet. She believes that combining AI with CRISPR and advances in other gene sequencing technologies could bring about a medical transformation. “This is the sleeper. It’s the most inefficiently priced part of the market,” Wood told the All-In Summit 2025 in September.
Perhaps this explains the high interest in gene editing stocks among hedge funds. For example, BlackRock bought over 980,000 more shares of a top gene editing company in Q3 2025. With this in mind, this post highlights some of the best names in this industry according to hedge fund interest.
Our Methodology
To compile our list of the 9 Best Gene‑Editing Stocks to Buy According to Hedge Funds, we first reviewed sector exposure through ETF holdings and recent media coverage. We focused on companies actively engaged in developing and commercializing gene‑editing technologies. We identified nine firms with positive upside potential and strong hedge fund support, drawing on Insider Monkey’s Q2 2025 database of over 983 funds. The list is arranged in ascending order according to hedge fund holdings.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Gene‑Editing Stocks to Buy According to Hedge Funds
9. Editas Medicine Inc. (NASDAQ:EDIT)
Number of Hedge Fund Holders: 11
Editas Medicine (NASDAQ:EDIT) is one of the best gene-editing stocks to buy according to hedge funds. On November 10, 2025, Clear Street raised its price target on Editas Medicine (NASDAQ:EDIT) to $4.60 from $4.00, while maintaining a Buy rating. The firm highlighted the company’s extended cash runway into the third quarter of 2027, supported by recent fundraising, and reaffirmed confidence in Editas’ lead program EDIT‑401, a gene editing therapy targeting LDL cholesterol.
Editas strengthened its balance sheet by raising $17.8 million through its ATM (at-the-market) offering in the third quarter and an additional $17.3 million in the fourth quarter, bringing its pro forma cash balance to $183 million. Clear Street noted this runway now extends beyond initial human data for EDIT‑401, providing financial flexibility to advance development milestones.
On the same day, Editas reported Q3 2025 results, posting EPS of –$0.28, slightly better than analyst estimates. Revenues rose to $7.5 million from $0.1 million in Q3 2024, driven by milestone recognition under its collaboration with Bristol Myers Squibb. CEO Gilmore O’Neill emphasized progress with EDIT‑401, citing preclinical data presented at AHA and ESGCT showing over 90% LDL cholesterol reduction in non‑human primates.
Editas Medicine (NASDAQ:EDIT) is a pioneering gene editing company focused on developing transformative in vivo therapies using CRISPR technology. Its pipeline includes EDIT‑401, with plans to file for IND/CTA by mid‑2026 and achieve human proof‑of‑concept data by year‑end 2026. The company holds exclusive licenses to the Broad Institute’s Cas12a and Cas9 patent estates, positioning it as a leader in precision gene editing.
8. Twist Bioscience Corporation (NASDAQ:TWST)
Number of Hedge Fund Holders: 23
Twist Bioscience Corporation (NASDAQ:TWST) is one of the best gene-editing stocks to buy according to hedge funds. On November 4, Steven Etoch, an analyst at Stephens, began coverage of Twist Bioscience Corporation (NASDAQ:TWST). Etoch assigned an Overweight rating on the stock and a $41 price target. The analyst cited Twist’s “differentiated, technology-driven DNA synthesis platform” as a key factor in the decision. The platform serves several markets, including drug discovery, next-generation sequencing (NGS), and synthetic biology. This platform is powered by silicon chip technology, which Etoch pointed out gives Twist advantages in cost, speed, and the scale of DNA production.
According to the analyst, Twist’s innovation spurred strong revenue growth – 22.7% over the past year and a five-year CAGR of 42%. Etoch noted further that while the gene editing landscape is competitive, Twist’s cost leadership and investments are helping it gain market share. The analyst expects the company to reach adjusted EBITDA break-even by the end of fiscal year 2026.
Etoch identified NGS as a major growth opportunity, particularly as its adoption expands in areas such as liquid biopsy and minimal residual disease (MRD) monitoring. He also cited expansion into adjacent markets as a way that Twist is strengthening its customer relationships.
Twist Bioscience Corporation (NASDAQ:TWST) is a synthetic biology company. It manufactures DNA at scale using a proprietary silicon-based platform. This enables rapid gene synthesis for applications in drug discovery, diagnostics, and precision medicine. Its main products are custom DNA sequences and gene libraries.
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