Fund Discloses $35 Million Biotech Buy Amid Staggering 830% Terns Stock Surge

This clinical-stage biotech develops therapies for NASH and obesity, advancing a diverse pipeline of small-molecule drug candidates.First Turn Management, LLC disclosed a new position in Terns Pharmaceuticals (TERN +6.30%) in a February 13, 2026, SEC filing, acquiring 872,049 shares in an estimated $35.23 million trade.What happenedAccording to an SEC filing dated February 13, 2026, First Turn Management, LLC initiated a new position in Terns Pharmaceuticals, acquiring 872,049 shares. At quarter’s end, the fund’s Terns Pharmaceuticals stake was valued at $35.23 million, reflecting the combined effect of new share acquisition and stock price performance.What else to knowThis new position in Terns Pharmaceuticals represents 4.03% of First Turn Management’s $875.20 million in reportable U.S. equity holdings as of December 31, 2025.Top five holdings post-filing:NASDAQ:ABVX: $51.41 million (5.9% of AUM)NASDAQ:RVMD: $50.85 million (5.8% of AUM)NASDAQ:INSM: $46.00 million (5.3% of AUM)NASDAQ:BBIO: $45.55 million (5.2% of AUM)NASDAQ:MIRM: $38.04 million (4.3% of AUM)As of February 13, 2026, Terns Pharmaceuticals shares were priced at $37.79, up a staggering 826.2% over the previous year, outperforming the S&P 500 by 814.43 percentage points.Company OverviewMetricValuePrice (as of market close February 13, 2026)$37.79Market Capitalization$4 billionNet Income (TTM)($94.44 million)One-Year Price Change826.2%Company SnapshotTerns Pharmaceuticals develops small-molecule therapeutics targeting non-alcoholic steatohepatitis (NASH) and obesity, with a pipeline including TERN-101 (Phase IIa), TERN-201 (Phase Ib), TERN-501 (Phase I), and TERN-601 (preclinical/early clinical).The company operates as a clinical-stage biopharmaceutical company, generating value through the advancement of proprietary drug candidates toward regulatory approval and potential out-licensing or commercialization partnerships.It targets patients with NASH and metabolic diseases, with primary customers expected to be healthcare providers, payers, and pharmaceutical partners upon commercialization.Terns Pharmaceuticals is a clinical-stage biotechnology company focused on developing innovative therapies for liver and metabolic diseases, particularly NASH and obesity. Its strategy centers on advancing a diversified pipeline of small-molecule drug candidates with differentiated mechanisms and liver-targeted profiles. The company's competitive edge lies in its multi-pronged approach to address high unmet medical needs in metabolic disorders through both single-agent and combination therapies.What this transaction means for investorsMomentum like this forces investors to separate story from substance. Terns Pharmaceuticals has rocketed 826% over the past year, with much of that move accelerating after the November 3 data release highlighting strong Phase 1 results for TERN-701 in relapsed and refractory CML. The company reported a 75% cumulative major molecular response rate by 24 weeks among evaluable patients, with no dose-limiting toxicities observed in escalation.What is less clear is timing. All we know is the stake was built in the fourth quarter. The outsized rally began after the November update, so it is impossible to tell whether the fund bought before the surge or leaned into strength afterward. Either way, the allocation fits a portfolio already heavy in clinical-stage biotech names like ABVX, RVMD, and INSM, suggesting a deliberate bet on high-volatility drug development.For long-term investors, the takeaway is discipline. Clinical-stage biotech can deliver extraordinary upside, but it cuts both ways. The science may be compelling, yet valuation now embeds significant optimism. Position sizing and pipeline durability matter more than headline percentage gains.About the AuthorJonathan Ponciano is a contributing stock market analyst at The Motley Fool. He has nearly a decade of experience as a financial journalist, most recently as an editor and senior reporter at Forbes focused on markets, technology, and entrepreneurship. Jonathan has also written for Investopedia and the Los Angeles Business Journal. He holds a dual B.A. in Business Journalism and Economics from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia Business School. A North Carolina native now based in New York City, Jonathan has also lived in Mexico City and Los Angeles.CMFjonponcStocks MentionedTerns PharmaceuticalsNASDAQ: TERN$40.17 (+6.30%) $+2.38*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.