Twist Bioscience: Liquid Biopsy And AI Tailwinds

Company Overview - Twist Bioscience's stock has experienced a significant rebound in recent months, attributed to increasing optimism surrounding AI-enabled drug discovery and the adoption of minimal residual disease (MRD) testing [1] - The Biopharma segment of Twist is reaccelerating, driven by customers engaged in AI-enabled drug discovery and next-generation sequencing (NGS) [1] Investment Strategy - Narweena, an asset management firm led by Richard Durant, focuses on identifying market dislocations caused by a poor understanding of long-term business prospects, aiming for excess risk-adjusted returns [1] - The research process at Narweena emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and a long-term investment horizon [1] - The firm targets smaller cap stocks and markets where competitive advantages are not immediately apparent, driven by the belief that an aging population and low growth will create new investment opportunities [1] Market Dynamics - Many industries are expected to face stagnation or secular decline, which may paradoxically enhance business performance due to reduced competition [1] - Conversely, some businesses may encounter rising costs and diseconomies of scale, impacting their performance negatively [1] - The economy is increasingly characterized by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1]