Do You Think Beam Therapeutics (BEAM) is an Undervalued Stock?

Contrarius Investment Management, an investment management company, released its third-quarter investor letter for the “Contrarius Global Equity Fund”. A copy of the letter can be downloaded here. The fund’s investor class returned 30.9% in the September quarter compared to 7.3% for the benchmark MSCI World Index, including reinvested net income, and 5.5% for the Average Global Equity Fund. The fund’s investment philosophy is independent of benchmark considerations, so the portfolios typically deviate from the benchmark World Index.  Additionally, please review the fund’s top five holdings to see its leading picks in 2025.

In its third-quarter 2025 investor letter, Contrarius Global Equity Fund highlighted stocks such as Beam Therapeutics Inc. (NASDAQ:BEAM). Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company, engages in the development of precision genetic medicines. The one-month return for Beam Therapeutics Inc. (NASDAQ:BEAM) was 19.13%, and its shares gained 12.26% of their value over the last 52 weeks. On December 29, 2025, Beam Therapeutics Inc. (NASDAQ:BEAM) stock closed at $27.84 per share, with a market capitalization of $2.83 billion.

Contrarius Global Equity Fund stated the following regarding Beam Therapeutics Inc. (NASDAQ:BEAM) in its third quarter 2025 investor letter:

"Beam Therapeutics Inc. (NASDAQ:BEAM): There have been significant further scientific breakthroughs since CRISPR-Cas9 was first discovered approximately 13 years ago. Beam holds patents to one such breakthrough, ‘base editing’ a.k.a. CRISPR 2.0.

A ‘base’ is one of the building blocks of DNA. It is essentially like a long instruction manual made up of four letters: A, T, C and G. Base editing can swap an A to a G, or a C to a T, to fix mistakes that cause diseases, all while keeping the DNA mostly intact. While CRISPR-Cas9 involves cutting the DNA double helix (creating the possibility of unwanted random inclusions or deletions), base editing precisely converts one DNA base to another without double-strand breaks. This expands the breadth of possible gene editing targets and theoretically improves the safety profile of the therapies..." (Click here to read the full text)

Beam Therapeutics Inc. (NASDAQ:BEAM)  is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 27 hedge fund portfolios held Beam Therapeutics Inc. (NASDAQ:BEAM) at the end of the third quarter, compared to 31 in the previous quarter. While we acknowledge the potential of Beam Therapeutics Inc. (NASDAQ:BEAM) 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.

In another article, we covered Beam Therapeutics Inc. (NASDAQ:BEAM) and shared the list of most promising mid-cap healthcare stocks under $50. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.