What Makes Avidity Biosciences (RNA) an Investment Choice?
ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter continued the market rally in May and June following waning policy uncertainty, a Fed rate cut, and animal spirits fueled by retail enthusiasm for high-growth potential markets, resulting in another double-digit gain. However, the strategy underperformed the benchmark, the Russell 2000 Growth Index, which gained 12.2%. The smallest market caps, the lowest returns on equity, and the highest beta names led the underperformance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its third-quarter 2025 investor letter, ClearBridge Small Cap Growth Strategy highlighted stocks such as Avidity Biosciences, Inc. (NASDAQ:RNA). Avidity Biosciences, Inc. (NASDAQ:RNA) is a biopharmaceutical company that focuses on RNA therapeutics. The one-month return of Avidity Biosciences, Inc. (NASDAQ:RNA) was 23.74%, and its shares gained 6.55% of their value over the last 52 weeks. On October 10, 2025, Avidity Biosciences, Inc. (NASDAQ:RNA) stock closed at $49.77 per share, with a market capitalization of $7.262 billion.
ClearBridge Small Cap Growth Strategy stated the following regarding Avidity Biosciences, Inc. (NASDAQ:RNA) in its third quarter 2025 investor letter:
"Avidity Biosciences, Inc. (NASDAQ:RNA) is a biopharmaceutical company with multiple late-stage development programs leveraging RNA technology to treat a variety of muscular dystrophy conditions. With promising early data, we believe the company is well-positioned to benefit from several upcoming clinical trial results."
Avidity Biosciences, Inc. (NASDAQ:RNA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 26 hedge fund portfolios held Avidity Biosciences, Inc. (NASDAQ:RNA) at the end of the second quarter, compared to 28 in the previous quarter. While we acknowledge the potential of Avidity Biosciences, Inc. (NASDAQ:RNA) 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 thebest short-term AI stock.
In another article, we covered Avidity Biosciences, Inc. (NASDAQ:RNA) and shared the list of best performing long term stocks according to analysts. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.
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