Jacob Funds Bets on Prime Medicine (PRME), a Next-Generation Gene Therapy Company

Core Insights - Jacob Funds released its fourth-quarter 2025 investor letter, noting a slight correction in equity markets in November despite robust economic growth throughout the year [1] - Divergent data on consumer spending and the labor market has raised doubts about future economic projections, a trend that has become common in recent years [1] - The Fund's strategy indicates that moderation in AI tech companies may benefit small companies, potentially leading to expansion in valuation multiples and favorable performance compared to peers [1] Company Focus: Prime Medicine, Inc. - Prime Medicine, Inc. (NASDAQ:PRME) is highlighted as a biotechnology company specializing in gene editing technology, with a market capitalization of $597.49 million [2] - As of February 17, 2026, Prime Medicine's stock closed at $3.31 per share, with a one-month return of -17.46% and a 12-month increase of 0.76% [2] - Jacob Funds added Prime Medicine to its portfolio, expressing confidence in its gene editing technology and the potential for significant upside if the technology proves viable [3] - The company acknowledges challenges in the gene therapy field, including safety, durability, and cost, but remains optimistic about the potential for effective cures for chronic and deadly diseases [3] - Promising efficacy and safety signals were observed in Prime Medicine's first clinical trial, indicating early positive developments in its gene editing capabilities [3]