5 Small-Cap Growth Stocks in Cathie Wood’s Portfolio

2.Veracyte, Inc. (NASDAQ:VCYT)

Percentage of ARK Investment Management’s 13F Portfolio: 1%

ARK Investment Management’s Stake Value: $241.4 million

Number of Hedge Fund Holders: 15

Market Capitalization: $1.51 billion

Veracyte, Inc. (NASDAQ:VCYT) is a global diagnostics company that provides genomic diagnostic products and services to improve patient care against diseases such as thyroid cancer, lung cancer, and idiopathic pulmonary fibrosis. The firm’s product portfolio consists of products such as Afirma analysis, Percepta, Envisia, and others. According to first-quarter 13F filings, ARK Investment Management held 8.75 million company shares worth $241.4 million.

Earlier this May, Needham analyst Mike Matson lowered his price target on Veracyte, Inc. (NASDAQ:VCYT) to $26 from $31 but kept a Buy rating on the shares. The company’s Q1 results topped expectations as organic revenue growth improved to 9% from 5% in Q4, the analyst tells investors in a research note. Matson adds that Veracyte, Inc. (NASDAQ:VCYT) has a long runway of strong growth and is positioned to become one of the leaders in cancer diagnostics.

Out of the 912 hedge funds tracked by Insider Monkey, Veracyte, Inc. (NASDAQ:VCYT) was part of 15 public hedge fund portfolios in the first quarter of 2022. In the previous quarter, 16 hedge funds had a stake in the company. Ken Fisher of Fisher Asset Management is one of the company’s most notable shareholders, with 1.14 million shares worth approximately $31.65 million.

Artisan Partners mentioned Veracyte, Inc. (NASDAQ:VCYT) in its second-quarter 2021 investor letter. Here is what the firm said:

“Among our bottom contributors (includes) Veracyte. Veracyte develops and markets molecular tests designed to minimize ambiguity in the treatment of patients with cancer. These tests can reduce unnecessary surgeries and help put cancer patients at ease when the decision is to “watch and wait.” Shares have been pressured amid a recent investment cycle (acquired Decipher and HalioDX) and a resurgence of the pandemic earlier this year weighing on testing volumes. In addition, the company’s founder and CEO recently announced she was moving to Executive Chair. Her replacement is the former CFO of Illumina, who is very knowledgeable in in-vitro diagnostics and played a critical role in Illumina’s international expansion efforts (which we expect him to pursue at Veracyte). We are maintaining our position as patients return to the clinic for testing and as management executes on its strong R&D pipeline, including the upcoming launch of a nasal swab lung cancer test. Longer-term, the company is well-positioned to expand internationally as it ports its growing menu of tests onto the recently acquired nCounter instrument.”