5 Biggest Losers in Cathie Wood’s Latest Portfolio

2. Coinbase Global, Inc. (NASDAQ:COIN)

ARK Investment Management’s 13 Portfolio: 5.53% 

ARK Investment Management’s Stake Value: $1.32 billion

Number of Hedge Fund Holders: 57

Year-To-Date Share Price Loss : 73.94%

Coinbase Global, Inc. (NASDAQ:COIN) is an important pillar of the global crypto-economy, operating a secure, hosted platform where users can buy, sell and trade with cryptocurrencies. Cathie Wood increased her stake in the firm by 29% to come in at 6.98 million shares worth $1.32 billion at the end of March.

On May 11, Goldman Sachs analyst Will Nance downgraded Coinbase Global, Inc. (NASDAQ:COIN) to ‘Neutral’ from ‘Buy’ and massively decreased the price target to $80 from $240. Although he still thinks Coinbase is the “blue chip way to gain exposure to the crypto native ecosystem’, he doesn’t see it returning to recent levels of profitability in the near-term without a significant increase in cryptocurrency prices. The analyst updated his estimates to reflect the firm’s Q1 results and future guidance, and the recent crash in cryptocurrency valuations.

57 hedge funds owned $3.46 billion worth of positions in Coinbase Global, Inc. (NASDAQ:COIN) at the close of the fourth quarter. This shows improving hedge fund sentiment over the previous quarter where 50 hedge funds were long on the company shares.

Longleaf Partners Fund talked about Coinbase Global, Inc. (NASDAQ:COIN) in its Q4 2021 investor letter. Here’s what the fund said:

“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Coinbase is a prime example.”