Jacob Funds, a mutual fund company, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The recent quarter began against the backdrop of the war in the Middle East and concerns about AI disruption in the tech space. However, these concerns eased, leading investors to focus more on AI winners and losers. Despite volatility, the emergence of AI is seen as a potential catalyst for business and economic innovation, similar to the late 1990s dot-com boom. This is happening more slowly than expected, but signs of increased activity suggest broader AI adoption is coming. The firm is optimistic about the portfolio adjustments made earlier this year as agentic AI becomes widely adopted. Please review the Fund's top five holdings to gain insights into their key selections for 2026.
In its April 2026 investor letter, Jacob Funds highlighted Kyverna Therapeutics, Inc. (NASDAQ:KYTX). Kyverna Therapeutics, Inc. (NASDAQ:KYTX) is a late-stage biopharmaceutical company that focuses on developing cell therapies for patients with autoimmune diseases. On July 8, 2026, Kyverna Therapeutics, Inc. (NASDAQ:KYTX) closed at $9.91 per share, reflecting a market capitalization of $602.48 million. Kyverna Therapeutics, Inc. (NASDAQ:KYTX) posted a one-month return of 25.92%, while its shares gained 177.59% over the past 52 weeks.
Jacob Funds stated the following regarding Kyverna Therapeutics, Inc. (NASDAQ:KYTX) in its April 2026 investor update:
"The Jacob Discovery Fund also added a position in Securitize in the quarter as well as a new position in Kyverna Therapeutics, Inc. (NASDAQ:KYTX). Kyverna is a small biotech company developing cell therapies that aim to "reset" the immune system in severe autoimmune diseases. Its lead opportunity is in stiff person syndrome, a rare and debilitating neurologic disease with no approved treatment, where early patient data showed meaningful improvement in symptoms and daily function for some patients. Kyverna, along with Fund holdings Cabaletta Bio and Cartesian Therapeutics, are all trying to prove out this approach, which could potentially apply to larger autoimmune markets, including myasthenia gravis and multiple sclerosis. While challenges to a successful commercialization remain, we like the chances that these next-generation CAR-T programs will prove successful in several autoimmune diseases and want to have broad exposure to the opportunity. Kyverna's stiff person syndrome drug may be the first of its kind to reach FDA approval, and like with Cabaletta and Cartesian, we believe, its market valuation gives scant for both its near-term prospects as well as the broader autoimmune platform potential."