What happened After the Food and Drug Administration paused Allogene Therapeutics' (NASDAQ: ALLO) clinical trials last week, the stock was crushed. It has rebounded 31% this week through Thursday, according to data from S&P Global Market Intelligence. That still leaves it down 30% since the beginning of the month. The FDA's intervention appeared to spur trading by ARK Invest in Beam Therapeutics (NASDAQ: BEAM), Intellia Therapeutics (NASDAQ: NTLA), and Schrödinger (NASDAQ: SDGR). Beam, Intellia, and Schrödinger were up roughly 13%, 9%, and 10%, respectively, this week through Thursday, also according to data from S&P Global Market Intelligence. Image source: Getty Images. So what The FDA hold was placed after a bone marrow biopsy revealed a chromosomal abnormality in one of the patients in the clinical trial for Allogene's ALLO-501A therapy. Although the various ARK Invest ETFs hold no shares of Allogene, the disappointment prompted a sell-off in many gene-editing stocks last week. That prompted Cathie Wood to make some trades. In addition to buying almost 1 million shares of CRISPR Therapeutics (NASDAQ: CRSP) this week (a company whose own data received a lukewarm reception last week), Wood's funds added to their positions in Beam Therapeutics and Intellia Therapeutics while making a small sale of Schrödinger. As it stands, ARK owns about 12% of Beam at an average cost about 10% below where it currently trades. It holds a little over 8% of Intellia, a position that has gained nearly 250%. For Schrödinger, it owns about 3.5% of the outstanding shares and is sitting on a 24% loss. Now what There are bound to be setbacks with any new therapy. This one slightly dampens the enthusiasm for gene-editing after Intellia and Regeneron shared positive results from the first in-human application of the technology in June. If Cathie Wood's trades are any indication, she remains confident in the technology. For investors with a long-term horizon and appropriately diversified portfolios, it could make sense to add on the weakness. The volatility is a good reason it can be beneficial to take a basket approach with emerging industries, buying a small portion of several companies. With so much potential, it only takes one big winner to make the basket a successful investment. So far for Wood, that's Intellia. 10 stocks we like better than Allogene Therapeutics IncWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Allogene Therapeutics Inc wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Jason Hawthorne owns shares of Beam Therapeutics. The Motley Fool owns shares of and recommends Schrödinger, Inc. The Motley Fool recommends the following options: long January 2023 $75 calls on Schrödinger, Inc. and short January 2023 $75 puts on Schrödinger, Inc. The Motley Fool has a disclosure policy.Source