Beam Therapeutics' (NASDAQ: BEAM) stock has fallen by 40% this year so far, but that hasn't stopped portfolio manager Cathie Wood's ARK Genomic Revolution ETF from loading up on its shares. Most recently, on Aug. 15, she bought more than 20,000 shares, capping off a slew of earlier purchases with her ARK Innovation ETF (NYSEMKT: ARKK) this year. Now, the stock accounts for nearly 2% of the ARK Invest portfolio of exchange-traded funds (ETFs). 

But why is Wood buying shares of this biotech when its stock keeps going down? Let's unpack her reasoning and consider what the company's chances of success are in the long run. 

Cathie Wood is unlikely to harbor any illusions about Beam Therapeutics as it exists today. It's a pre-revenue biotech devoted to using advanced gene-editing techniques to treat illnesses, which means that it needs to commercialize at least one program in its pipeline before it runs out of money.

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Source Fool.com