Osterweis Capital Management, an investment management firm, released its Q1 2026 investor update for its “Osterweis Opportunity Fund”. A copy of the letter can be downloaded here. The fund returned -3.78% in the quarter compared to -2.81% for the Russell 2000 Growth Index. The fund’s long-term returns stay positive, but recent geopolitical shocks and AI disruption concerns pressured quarterly results. Security selection boosted performance, whereas sector allocation was a significant drag. Although the firm’s investment approach remains consistent, it continues to seek innovative companies in growing markets. In addition, you can check the Fund’s top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, Osterweis Opportunity Fund highlighted Twist Bioscience Corporation (NASDAQ:TWST) as a notable contributor. Twist Bioscience Corporation (NASDAQ:TWST) is a leading biotechnology company specializing in the manufacture and sale of synthetic DNA-based products. On June 18, 2026, Twist Bioscience Corporation (NASDAQ:TWST) closed at $87.56 per share. One-month return of Twist Bioscience Corporation (NASDAQ:TWST) was 44.56%, and its shares gained 152.77% over the past 52 weeks. Twist Bioscience Corporation (NASDAQ:TWST) has a market capitalization of $5.45 billion.
Osterweis Opportunity Fund stated the following regarding Twist Bioscience Corporation (NASDAQ:TWST) in its Q1 2026 investor letter:
“Our Health Care holdings detracted most from our relative performance in the first quarter, as the entire sector struggled except for biotech. We do not believe the current outperformance in biotech is sustainable, and we expect stronger returns from our Health Care names in the near-to-medium term. Our biggest contributor was Twist Bioscience Corporation (NASDAQ:TWST), a maker of synthetic genomic material that is used for both drug discovery and genomic testing. The company is particularly well positioned in the expanding field of liquid biopsy, where we are anticipating substantial secular growth. Additionally, Twist is being used as an outsourced wet lab for other technology companies building genomic databases for their own large language (AI) models. This is a new growth area for the company and was partly responsible for the strong performance in Q1.”
Twist Bioscience Corporation (NASDAQ:TWST) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 30 hedge fund portfolios held Twist Bioscience Corporation (NASDAQ:TWST) at the end of the first quarter, up from 24 in the previous quarter. In the second quarter of fiscal 2026, Twist Bioscience Corporation’s (NASDAQ:TWST) total revenue rose to $110.7 million, reflecting a year-over-year increase of over 19%. While we acknowledge the risk and potential of Twist Bioscience Corporation (NASDAQ:TWST) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TWIST BIOSCIENCE CORPORATION (NASDAQ:TWST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Twist Bioscience Corporation (NASDAQ:TWST) and shared the list of best immunology stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
