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New High Conviction Buy: $INSM Market Cap: $22.4B Portfolio Allocation: 5% Current Price: $103 Average Analyst Price Target: $215 Insmed ( $INSM ) is one of those rare situations where Wall Street seems to be focused on the next quarter, while some of the smartest biotech investors are looking several years ahead. We have seen similar pattern in all our recent wining picks. The company develops medicines for serious lung diseases with few effective treatment options. Its lead product, Brinsupri, was recently launched for patients with bronchiectasis suffering from recurrent lung infections. Earlier this year, the stock fell nearly 50% after the initial launch failed to meet the market’s extremely high expectations. Investors had expected an explosive rollout, but early prescription growth came in slower than hoped, leading many to question whether the launch was falling apart. So far, that doesn’t appear to be the case. Prescription trends have continued to improve, physicians remain optimistic, and several recent reports from JPMorgan, UBS and other research firms support our view that the market became overly focused on the first few months of prescriptions while missing the much bigger story. They also believe Brinsupri still has the potential to become a multi-billion-dollar drug as physician adoption expands and reimbursement improves over time. From a technical standpoint, the stock also appears to have found a bottom after the 50% decline, with selling pressure easing while the underlying business continues to execute. That alone would make Insmed interesting. But the pipeline may be even more valuable. The company’s inhaled treprostinil program for pulmonary arterial hypertension (PAH) could become another major growth driver, with important clinical data expected in 2026. If successful, Insmed would evolve from a one-product company into a diversified rare disease leader with multiple blockbuster opportunities. Wall Street still sees substantial upside. Average analyst price targets remain well above today’s share price, with many analysts believing the recent selloff reflects timing rather than a deterioration in the long-term opportunity. Perhaps the most interesting signal, however, comes from who owns the stock. This isn’t a company being accumulated by generalist momentum funds. It is owned by some of the most respected healthcare investors in the world. RTW Investments: 7.9% of its portfolio. Baker Bros. Advisors: 7.0%. Stanley Druckenmiller: 6.4%. And perhaps most impressively, Darwin Global Management, one of biotech’s premier specialist hedge funds, has made Insmed roughly 68% of its disclosed public equity portfolio. That level of concentration is almost unheard of. Specialist biotech investors spend years building relationships with physicians, researchers and management teams. While no investor is always right, seeing multiple world-class healthcare investors independently build such meaningful positions deserves attention. The investment case ultimately comes down to one question. If Brinsupri continues executing as prescription trends suggest, and the PAH program delivers positive clinical data next year, today’s valuation could look surprisingly inexpensive in hindsight. The market is pricing execution risk. The specialists appear to believe the market is underestimating the probability of success. That’s exactly the kind of disconnect that often creates the best long-term investment opportunities. Brokers research attached below.

$WGS Update: Bullish fireside chat at Goldman today, and the founder, director, and hedge fund manager purchased additional shares, paying as much as $56.50 per share. Per today’s filing, Eli Casdin bought another 200,000 shares of $WGS at prices ranging from $52.80 to $56.50 per share. Just in case you’re wondering if you’re too late to the party, apparently the smart money is still a happy buyer at $56.5. After the recent buying spree, Casdin and Meister now control approximately 35% of GeneDx, the company they helped bring public through a SPAC and a company that no one knows better than they do. The market’s problem with GeneDx is not growth. The company is still growing roughly 37% per year. The problem is reimbursement. Today, a whole genome test is reimbursed at roughly half the rate of a whole exome test. Think of it this way. A whole exome test is like watching the trailer for a movie. A whole genome test is like watching the entire movie. Yet today, the healthcare system pays more for the trailer than it does for the full movie. I don’t think that makes sense, and I don’t think it will stay that way forever. And obviously management and the smart money think the same. The reason is simple. Reimbursement systems move slowly. New technologies often become clinically useful long before insurance companies and government payors update their payment schedules. I also just got off the GeneDx Fireside Chat at Goldman. This is obvious: temporary problems, strong growth, an AI beneficiary, and a dataset built over 20 years that would take enormous amounts of time and capital to replicate. Long-term winner. To me, it’s as clear as day and night. Listen to it yourself. ir.genedx.com/news-events/ev… Management says this issue will take months to fix, not years. My thesis is not that GeneDx goes back to its pre-Q1 valuation of $70 once reimbursement improves. My thesis is that by the time reimbursement improves, which according to management and involved hedge funds is a question of when, not if, GeneDx will be a fundamentally different company: larger, stronger, and far more valuable than it is today. I think the average analyst 12 month price target of $90 is conservative. The company is currently growing roughly 37% per year. If that growth continues, revenue, adoption, and earnings power will be substantially higher by the time the reimbursement issue is resolved.

The Insiders Who Built $WGS Are Backing Up the Truck Every great hedge fund has that one legendary trade that defines the firm for decades. This could be that moment for Casdin and Corvex. The funds buying the $WGS earnings crash aren’t random hedge funds or ordinary insiders. Casdin and Corvex were there from the beginning. CM Life Sciences was the SPAC sponsored by affiliates of Casdin Capital and Corvex, and Sema4 completed that deal in July 2021. Sema4 then acquired GeneDx in April 2022, and the company later became GeneDx Holdings, $WGS . These are not hopeful founders that are going down with the ship, these are Wall Street veterans who have been around for decades. You can find countless interviews with them on CNBC and across financial media over the years. They have seen bubbles, crashes, frauds, turnarounds, and every type of market cycle imaginable. And now they are backing up the truck on this crash. Why? Because this may be their anomaly opportunity, the once-in-a-lifetime type of setup every great investor waits years for, where they have complete informational superiority over everyone else. A situation where the market suddenly panics in a business they understand better than anyone alive because they effectively helped create the company and lived through every stage of its evolution. So when Casdin adds massive exposure and Meister keeps buying aggressively, they are not reacting to a headline. They know the SPAC, the GeneDx acquisition, the old Sema4 mistakes, the turnaround, the reimbursement model, the payer issues, and the quality of the core exome and genome business better than anyone on the outside. This is also an extremely niche industry that very few funds or analysts truly understand. Genomic diagnostics, reimbursement dynamics, payer behavior, exome utilization, and lab economics are highly specialized areas where surface-level analysis can be dangerously misleading. That is why the timing matters so much. The recent “blunder” was not that demand disappeared. Q1 volume grew strongly, but revenue missed because blended reimbursement came in lower than expected and noncore lines underperformed. The issue appears tied to execution and mix, not a collapse in demand for the core business. That distinction is everything. If the story were permanently broken, insiders who have lived inside this company for years would not be adding aggressively right after the market punished the stock. After the collapse, Corvex-related entities came in and bought 1.2M shares between May 7–11 for roughly $46.8M in the mid-$30s. And he still wasn’t done. On May 15, he reported another $13.7M purchase. In total approximately $60M in one week, CONVICTION. Casdin also recently increased his economic exposure through swaps tied to 850,000 notional shares. The position now represents approximately 28% of his fund, based on the fund’s value at the end of Q1. (At the time of writing, Casdin had purchased an additional 500,000 shares.) The market is pricing $WGS like the Q1 miss exposed a structurally broken business. The people closest to the entire history of the company seem to believe something very different. No one knows the story better than them, no one. GeneDx now trades around $40, at an EV of 2.2x revised 2026 implied revenue, while the industry trades closer to double that multiple. My base-case scenario is a $75 price target over the next 12 months based on valuation alone. Separately, average analyst price targets still sit near $80 even after recent downgrades. Operationally, test volume still grew 34% YoY, the company now has insurance contracts covering ~80% of U.S. covered lives, and its proprietary genomic dataset continues compounding with every additional test. If the current reimbursement and execution issues prove temporary, the upside from today’s valuation could still be measured in hundreds of percent over the medium to long term. Portfolio allocation: 30%

$STAA +17% after hours as my contrarian thesis is validated. More on that tomorrow. No wonder Broadwood hedge fund did not sell at $30.75 - the China thesis is fully intact. This is going much higher.