In this article, we discuss the 7 stocks that Cathie Wood dumped in July. If you want to see more stocks that she disposed of during this month, click Cathie Wood Dumped These 3 Stocks in July.
In June, Cathie Wood’s ARK Investment Management suffered a sharp decline in assets, which was decidedly higher than most US exchange traded funds in 2022. ARK ETFs held a cumulative $15.3 billion in assets at the conclusion of June, down 48% compared to the beginning of 2022. The drop in Cathie Wood’s assets under management is largely attributed to the weak performance of her portfolio, rather than investors pulling out of the fund. There were net inflows of $167 million in ARK exchange traded funds at the end of June.
Cathie Wood’s social media popularity and her reputation as a disruptive tech bull has made her stand out on Wall Street, whether it is because investors are berating her growth focused strategies or market funds are trying to replicate her portfolio. For example, AXS Investments is an ETF issuer who bets for and against ARK Innovation ETF through two primary funds – AXS 2X Innovation ETF and Tuttle Capital Short Innovation ETF. Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence, said on July 28 that it is a smart strategy on part of AXS Investments to profit off of Cathie Wood’s funds, but it benefits Wood simultaneously, as her products are more actively traded now. Bloomberg Intelligence recognizes 24 global ETFs that monitor, replicate, or bet against the performance of an ARK product.
ARK Innovation ETF, although still down about 52% year to date as of July 29, has been surging as of late. The ETF gained about 11.25% in the past month, as there are bullish indicators across the tech sector. Cathie Wood, who has an aggressive growth mindset and invests accordingly, actively reviews the stock market and analyses trends. Investors who follow her buying sprees closely must also take a look at what she is selling in the current market environment. Some of the most notable stocks that Cathie Wood dumped in July include CRISPR Therapeutics AG (NASDAQ:CRSP), Coinbase Global, Inc. (NASDAQ:COIN), and Intellia Therapeutics, Inc. (NASDAQ:NTLA).
Cathie Wood of ARK Investment Management
Our Methodology
We picked the SELL transactions initiated by Cathie Wood in the month of July. For this article we used Cathie’s Ark, a website which monitors the latest stock market trades of Cathie Wood’s ARK ETFs.
Cathie Wood Dumped These Stocks in July
7. Compugen Ltd. (NASDAQ:CGEN)
Number of Hedge Fund Holders: 13
Compugen Ltd. (NASDAQ:CGEN) was incorporated in 1993 and is headquartered in Holon, Israel. It operates as a clinical-stage therapeutic discovery and development company, which is focused on immuno-oncology products. The company has therapeutic and product candidates in Israel, the United States, and Europe. In Late February, SVB Leerink analyst Daina Graybosch reiterated an Outperform rating on Compugen Ltd. (NASDAQ:CGEN) and lowered the firm’s price target on the stock to $9 from $16 after the Q4 results and updated 2022 outlook. As of July 28, the stock has declined about 64% year to date.
In July, Cathie Wood’s ARK Innovation ETF sold off a significant portion of its Compugen Ltd. (NASDAQ:CGEN) stake. The ETF disposed of 15,677 Compugen Ltd. (NASDAQ:CGEN) shares on July 28, preceded by a sale of 81,039 shares on July 27. In total, ARK Innovation ETF dumped a little over 910,000 shares of the company during July.
According to Insider Monkey’s data, Compugen Ltd. (NASDAQ:CGEN) was part of 13 hedge fund portfolios at the end of Q1 2022, with combined stakes worth $44.6 million, compared to the same number of funds in the earlier quarter, holding stakes in the company valued at $55.2 million. In the first quarter of 2022, ARK Investment Management was the leading position holder in the company, with 10.2 million shares worth roughly $33 million. Cathie Wood’s hedge fund boosted its Compugen Ltd. (NASDAQ:CGEN) stake in Q2 2022 by 7% before going on a selling spree during July.
In addition to CRISPR Therapeutics AG (NASDAQ:CRSP), Coinbase Global, Inc. (NASDAQ:COIN), and Intellia Therapeutics, Inc. (NASDAQ:NTLA), Cathie Wood slashed her Compugen Ltd. (NASDAQ:CGEN) stake in July.
6. Berkeley Lights, Inc. (NASDAQ:BLI)
Number of Hedge Fund Holders: 16
Berkeley Lights, Inc. (NASDAQ:BLI) is a California-based digital cell biology company that focuses on the development and distribution of biotherapeutics and other cell-based products. It operates in North America, the Asia Pacific, and Europe. In March, Cowen analyst Steven Mah initiated coverage of Berkeley Lights, Inc. (NASDAQ:BLI) with an Outperform rating, citing “SynBio” as a high-single digit trillion market that will grow to mid-double digit trillions by 2025.
On July 22, ARK Innovation ETF sold 51,500 shares of Berkeley Lights, Inc. (NASDAQ:BLI). Cathie Wood’s fund dumped approximately 1.17 million shares of the company during the month of July. Cathie Wood’s ARK Investment Management owned a total of 8.30 million shares worth $59 million as of the first quarter of 2022. The hedge fund boosted its stake in Berkeley Lights, Inc. (NASDAQ:BLI) in the June quarter by 2%, before discarding some shares in July.
According to Insider Monkey’s data, 16 hedge funds were bullish on Berkeley Lights, Inc. (NASDAQ:BLI) at the end of Q1 2022, with collective stakes worth $96.3 million, compared to the same number of funds in the prior quarter, holding stakes in the company valued at $237.7 million.
Here is what Alger Small Cap Focus Fund has to say about Berkeley Lights, Inc. (NASDAQ:BLI) in their Q1 2021 investor letter:
“Berkeley Lights Inc. was among the top detractors from performance. Berkeley Lights is a leading digital cell biology company founded in 2011. The company provides a single cell manipulation platform to enable and accelerate rapid development and commercialization of biotherapeutics and other cell-based products. The Berkeley Lights platform provides an advanced environment for rapid functional characterization of single cells at scale, with advanced automation systems that analyze live cells using proprietary consumables and application and workflow software to deliver robust single cell data. Berkeley Lights’ workflows enable a deep understanding of each cell’s behavior by recording critical data such as relevant phenotypic characteristics and linking to genetic information using real -time continuous images on thousands of cells, cell by cell. The company drastically reduces the amount of time required to get results for each of these application workflows by using customer defined criteria to find the best eel I for each customer’s desired product.
We believe the underperformance of Berkeley Lights shares during the first quarter was driven more by heavy insider selling than by a change in fundamentals and we believe the base business remains strong. For example, the company recently announced a new$17 mi11ion multi-year non-exclusive collaboration agreement with a global leader in the contract development and manufacturing organization (COMO) space, which will expand the company’s total addressable market and potentially allow the company to develop new workflows that it can commercialize in the future. More broadly, Berkeley Lights has tailwinds from strong demand for cell -based products, increasing complexity of these products and a growing number of therapeutic modalities, all of which should drive demand for the company’s technology.”
5. Beam Therapeutics Inc. (NASDAQ:BEAM)
Number of Hedge Fund Holders: 20
Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company based in Cambridge, Massachusetts, developing precision genetic medicines for the treatment of sickle cell disease, beta thalassemia, lymphoblastic leukemia, ocular diseases, and other liver, muscle, and central nervous system disorders. In July, ARK Innovation ETF sold about 220,000 shares of Beam Therapeutics Inc. (NASDAQ:BEAM).
On July 18, BMO Capital analyst Kostas Biliouris raised the price target on Beam Therapeutics Inc. (NASDAQ:BEAM) to $61 from $41 but maintained a Market Perform rating on the shares. The analyst remains positive on the company’s latest advancements as Verve – one of the primary Beam Therapeutics Inc. (NASDAQ:BEAM) partners – is applying Beam’s base editing technology in the cardiovascular disease space. The analyst reiterated that although he is optimistic about the “great potential” of the Beam Therapeutics Inc. (NASDAQ:BEAM) platform, all of its assets are “early” and clinical derisking “has not been established”.
Among the hedge funds tracked by Insider Monkey, 20 funds reported owning stakes in Beam Therapeutics Inc. (NASDAQ:BEAM) at the end of March 2022, collectively worth $879.40 million, compared to 22 funds in the prior quarter, with combined stakes in the company valued at $1.17 billion. Thomas Steyer’s Farallon Capital is a significant position holder in Beam Therapeutics Inc. (NASDAQ:BEAM), with 2.6 million shares worth $148.65 million.
Here is what Baron Health Care Fund has to say about Beam Therapeutics Inc. (NASDAQ:BEAM) in their Q1 2021 investor letter:
“Beam Therapeutics Inc. is a biotechnology company pioneering a novel technology called base editing, which allows for individual base pairs (the letters of DNA) to be modified. Shares fell along with other biotechnology stocks driven by a sudden rise in treasury yields. Early stage biotechnology stocks are particularly sensitive to interest rates because their cash flows are further in the future. We believe we are entering into a phase of significant advancement for the gene editing field that will eventually lead to curative therapies, and we think Beam has a unique platform technology.”
4. Stratasys Ltd. (NASDAQ:SSYS)
Number of Hedge Fund Holders: 21
Stratasys Ltd. (NASDAQ:SSYS) was incorporated in 1989 and is headquartered in Minnesota. The company specializes in connected polymer-based 3D printing solutions. Stratasys Ltd. (NASDAQ:SSYS) posted a revenue of $521 million and $607 million in 2020 and 2021, respectively. The company expects to report a Q2 2022 loss per share of $0.01 and a revenue of $166.32 million. In July, Cathie Wood’s ARK Innovation ETF dumped more than 5.5 million Stratasys Ltd. (NASDAQ:SSYS) shares.
On May 17, Lake Street analyst Troy Jensen lowered the price target on Stratasys Ltd. (NASDAQ:SSYS) to $29 from $40 and reaffirmed a Buy rating on the shares after the company disclosed “another impressive quarter” and guided Q1 and FY22 “well ahead of consensus”.
According to Insider Monkey’s data, 21 hedge funds were bullish on Stratasys Ltd. (NASDAQ:SSYS) at the end of Q1 2022, with combined stakes worth $354.72 million, compared to 22 funds in the prior quarter, holding stakes in the company valued at $336.2 million. Paul Marshall and Ian Wace’s Marshall Wace LLP is a prominent stakeholder of the company, with 1.4 million shares worth $36.80 million.
Like CRISPR Therapeutics AG (NASDAQ:CRSP), Coinbase Global, Inc. (NASDAQ:COIN), and Intellia Therapeutics, Inc. (NASDAQ:NTLA), Cathie Wood reduced her exposure to Stratasys Ltd. (NASDAQ:SSYS) in July.
Here is what Alger Spectra Fund has to say about Stratasys Ltd. (NASDAQ:SSYS) in their Q1 2021 investor letter:
“Short position Stratasys also contributed to performance. Stratasys is one of the larger 3D printing companies. While additive manufacturing (3D printing) is a revolutionary concept, it has only seen its primary adoption for manufacturing prototypes and test parts, not high-volume end-use parts. Unfortunately for incumbents like Stratasys, additive manufacturing has continued to attract capital and dozens of new entrants have emerged with new technologies targeting specific applications. Industry pioneers like Stratasys have seen key patents expire and have lost market share to new competition. As a result of these factors, Stratasys has not grown for five years. Some industry participants believe that Stratasys’ plastic extrusion technology is simply too slow to be an acceptable solution for higher volume manufacturing. The short position contributed to portfolio returns when Stratasys’ shares declined due to year-over-year revenue contraction, continuing market share losses, a talent exodus, the issuance of new shares via a secondary offering, and no significant progress on developing new opportunities in promising additive verticals like metal and dental.”
Click to continue reading and see Cathie Wood Dumped These 3 Stocks in July.
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Disclosure: None. Cathie Wood Dumped These 7 Stocks in July is originally published on Insider Monkey.
