In this article, we discuss 5 micro-cap stocks to buy according to Catherine Wood. You can see more of Wood’s favorite micro-cap stocks by clicking 10 Micro-Cap Stocks To Buy According To Cathie Wood.
5. Conformis, Inc. (NASDAQ:CFMS)
Percentage of ARK Investment Management’s 13F Portfolio: 0.03%
ARK Investment Management’s Stake Value: $8.13 million
Number of Hedge Fund Holders: 9
Market Capitalization: $65.37 million
Conformis, Inc. (NASDAQ:CFMS) is a leading medical device company that features personalized knee and hip replacement products. It was founded in 2004 to provide dramatic advancements in patient care by utilizing imaging technology to create personalized, patient-specific implants and instrumentation. Securities filings for Q1 2022 reveal that Cathie Wood’s ARK Investment Management owned 13.03 million shares of Conformis, Inc. (NASDAQ:CFMS), worth $8.13 million.
John Overdeck and David Siegel’s Two Sigma Advisors holds one of the leading positions in Conformis, Inc. (NASDAQ:CFMS) as of March 2022, with 2.87 million shares worth $3.8 million. Overall, 9 hedge funds in the database of Insider Monkey were bullish on Conformis, Inc. (NASDAQ:CFMS) in the first quarter, down from 10 funds in the prior quarter.
4. Zymergen Inc. (NASDAQ:ZY)
Percentage of ARK Investment Management’s 13F Portfolio: 0.03%
ARK Investment Management’s Stake Value: $9.07 million
Number of Hedge Fund Holders: 11
Market Capitalization: $165.54 million
Zymergen Inc. (NASDAQ:ZY) is an American biotechnology company based in Emeryville, California. The company applies genomics and machine learning to research and design chemical producing genetically modified organisms. ARK owned 3.13 million shares of Zymergen Inc. (NASDAQ:ZY) at the end of the first quarter of 2022 worth $9.07 million, representing 0.03% of the portfolio.
On June 28, Zymergen Inc. (NASDAQ:ZY) announced an R&D supply agreement to provide Zymergen Z2 polyimide powder to 3D4Makers for use in high performance 3D printing applications. 3D4Makers will convert the powder to filament, offering its first-ever polyimide filament to customers for use across a wide range of applications including aerospace, automotive, and transportation.
At the end of the first quarter of 2022, 11 hedge funds in the database of Insider Monkey held stakes worth $24.93 million in Zymergen Inc. (NASDAQ:ZY), compared to 8 in the preceding quarter worth $42.15 million. Among the hedge funds being tracked by Insider Monkey, Israel Englander’s Millennium Management is a leading shareholder in Zymergen Inc. (NASDAQ:ZY) with 1.24 million shares worth more than $3.58 million.
In its Q3 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Zymergen Inc. (NASDAQ:ZY) was one of them. Here is what the fund said:
“Zymergen Inc. is a company dedicated to biofacturing, or harnessing bacteria to manufacture materials. Zymergen was a detractor following an unexpected update announcing both a major delay in the launch of lead product Hyaline and the removal of CEO Josh Hoffman, who was replaced by company chairman and former Illumina CEO Jay Flatley. We exited our position given material impacts to the business.”
3. Surface Oncology, Inc. (NASDAQ:SURF)
Percentage of ARK Investment Management’s 13F Portfolio: 0.06%
ARK Investment Management’s Stake Value: $15.7 million
Number of Hedge Fund Holders: 12
Market Capitalization: $96.11 million
Surface Oncology, Inc. (NASDAQ:SURF) is a clinical-stage immuno-oncology company focused on developing next generation immunotherapies that target the immune-suppressive tumor microenvironment to attack cancer. One of the top micro-cap stock in Cathie Wood’s 13F portfolio for the first quarter of 2022, her hedge fund reported owning 5.34 million Surface Oncology, Inc. (NASDAQ:SURF) shares, worth $15.7 million
Earlier this April, Surface Oncology, Inc. (NASDAQ:SURF) announced the initiation of its two Phase 2 clinical studies evaluating SRF388, a potential first-in-class antibody against IL-27. The trials include a randomized Phase 2 clinical study evaluating SRF388 in combination with Roche’s atezolizumab and bevacizumab in patients with treatment-naive hepatocellular carcinoma, and a Phase 2 monotherapy study in patients with previously-treated non-small-cell lung cancer.
In Q1 2022, 12 hedge funds reported owning stakes in Surface Oncology, Inc. (NASDAQ:SURF), worth $46.4 million. This is compared to 13 funds holding stakes in the company valued at $42.39 million in the preceding quarter. Ken Griffin’s Citadel Investment Group is one of the biggest stakeholders in Surface Oncology, Inc. (NASDAQ:SURF), with 1.4 million shares worth more than $4.13 million.
2. Dynamics Special Purpose Corp. (NASDAQ:DYNS)
Percentage of ARK Investment Management’s 13F Portfolio: 0.09%
ARK Investment Management’s Stake Value: $22.49
Number of Hedge Fund Holders: N/A
Market Capitalization: $221. 28 million
Dynamics Special Purpose Corp. (NASDAQ:DYNS) is a blank check company that was formed in May 2021 for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. Cathie Wood, via ARK Investment Management, holds 2.27 million shares in Dynamics Special Purpose Corp. (NASDAQ:DYNS), worth $22.49 million at the end of March, representing 0.09% of the fund’s total Q1 portfolio.
On June 8, shareholders of Dynamics Special Purpose Corp. (NASDAQ:DYNS) approved a proposed merger with cellular therapy developer Senti Biosciences. In a filing, the company said that shareholders voted in favor of the deal which pegs the company with a pro form equity value of $601 million. The said merger was announced earlier in December.
1. Compugen Ltd. (NASDAQ:CGEN)
Percentage of ARK Investment Management’s 13F Portfolio: 0.13%
ARK Investment Management’s Stake Value: $32.9 million
Number of Hedge Fund Holders: 13
Market Capitalization: $182.37 million
Established as a computational drug discovery service provider in 1993, Compugen Ltd. (NASDAQ:CGEN) is a clinical-stage publicly traded predictive drug discovery and development company headquartered in Israel. It accounted for 0.13% of the ARK Investment Management’s portfolio as of the end of the March 2022 quarter, with over 9.8 million shares worth $58.7 million.
SVB Leerink analyst Daina Graybosch lowered the price target on Compugen Ltd. (NASDAQ:CGEN) to $9 from $16 and maintained an Outperform rating on the shares while updating her 2022 outlook.
There were 13 hedge funds that held a position in Compugen Ltd. (NASDAQ:CGEN) worth $44.6 million at the end of the first quarter, the same as the previous quarter worth $55.2 million. Among the hedge funds tracked by Insider Monkey, Jim Simons’ Renaissance Technologies is one of the leading shareholders of Compugen Ltd. (NASDAQ:CGEN), with 9.2 million shares worth close to $40 million.
You can also take a look at 10 Defensive Stocks in Billionaire Ray Dalio’s Latest Portfolio and Michael Burry is Buying These 10 Stocks As Recession Fears Mount.
