This Biotech Fund Sold $8 Million of Terns Stock Last Quarter, but Here's Why It Still Seems Very Bullish

By Jonathan Ponciano – Mar 18, 2026 at 10:44AM ESTKey PointsSuperstring Capital Management reduced its stake in Terns by 345,869 shares during the fourth quarter; the estimated trade value was $7.99 million based on quarterly average prices.Meanwhile, the quarter-end position value declined by approximately $12.00 million, reflecting both trading and stock price movements.The post-transaction holding stood at 443,777 shares valued at $17.93 million, per an SEC filing.On February 17, 2026, Superstring Capital Management reported selling 345,869 shares of Terns Pharmaceuticals (TERN 1.76%) in the fourth quarter, an estimated $7.99 million trade based on quarterly average pricing.What happenedAccording to a February 17, 2026, SEC filing, Superstring Capital Management reduced its position in Terns Pharmaceuticals by 345,869 shares during the fourth quarter of 2025. The estimated value of the trade, derived from the average closing price for the quarter, was $7.99 million. The fund’s quarter-end position in Terns Pharmaceuticals decreased in value by approximately $12.00 million, reflecting both share sales and stock price moves.What else to knowTop holdings after the filing:NASDAQ:CDTX: $18.80 million (10.1% of AUM)NASDAQ:TERN: $17.93 million (9.6% of AUM)NASDAQ:URGN: $16.82 million (9.0% of AUM)NASDAQ:COGT: $13.01 million (7.0% of AUM)NASDAQ:DVAX: $8.08 million (4.3% of AUM)As of Wednesday, Terns shares were priced at $45.56, up a staggering 1,300% over the past year and vastly outperforming the S&P 500’s roughly 19% gain in the same period.Company overviewMetricValuePrice (as of Wednesday)$45.56Market capitalization$4.9 billionNet income (TTM)($94.44 million)Company snapshotTerns develops small-molecule therapies targeting chronic myeloid leukemia (CML), non-alcoholic steatohepatitis (NASH) and obesity, with lead candidates including TERN-101, TERN-201, TERN-501, and TERN-601 in various stages of clinical development.The firm operates a clinical-stage biopharmaceutical business model focused on advancing proprietary drug candidates through early- and mid-stage trials, aiming for eventual regulatory approval and commercialization or strategic partnerships.It has targeted patients with NASH and metabolic diseases, addressing unmet needs in the global healthcare and biotechnology markets.What this transaction means for investorsEven after trimming Terns, the stock remains one of the largest holdings in Superstring’s portfolio, which tells you this is not a loss of conviction but a recalibration after an extraordinary move.A 1,300% gain in a single year is staggering, and it certainly creates some expectations, which matter in biotech, where outcomes hinge on trial execution and regulatory milestones rather than steady revenue growth.The underlying story, however, is still compelling. Terns has repositioned around oncology, with its lead program for chronic myeloid leukemia showing strong early efficacy and a slate of catalysts expected this year, including dose selection and pivotal trial progress. Meanwhile, roughly $1 billion in cash provides runway into 2031, reducing the firm’s near-term financing risk thanks largely to a massive $747.5 million offering in December. If catalysts deliver positive results and Terns can launch its inhibitor by 2031, the recent share surge might prove to have legs.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$45.65(-1.76%)-$0.82*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.