In this article, we discuss the 10 stocks that Cathie Wood is doubling down on despite losses. If you want to skip our detailed analysis of these stocks, go directly to Cathie Wood is Doubling Down on These 5 Stocks Despite Losses.
The prospect of rising interest rates has pushed investors to sell risky offerings in their portfolios. As a result, there has been a massive sell-off in high growth sectors like technology, space, and biotech in the past few weeks. Amid the panic, growth-focused portfolios, like that of Cathie Wood at ARK Investment Management, have suffered. The flagship ARK Innovation ETF is down over 33% year-to-date. Nearly all the stocks in the ARK portfolio, worth over $33 billion at the end of the fourth quarter of 2021, are in the bear market.
Some of the top names in the portfolio that have been battered recently include Tesla, Inc. (NASDAQ:TSLA), Roku, Inc. (NASDAQ:ROKU), and Teladoc Health, Inc. (NYSE:TDOC), among others discussed in detail below. Wood has doubled down on her bets as the sell-off continues. In a recent interview with news platform CNBC, she defended her recent moves at the market, claiming that the technology stocks in her portfolio were “way undervalued relative to their potential” and that her fund was operating in the “deep value” territory.
Wood also addressed the mass investor exodus from her flagship Innovation ETF, saying that her biggest concern at the moment was investors who could turn temporary losses into permanent ones. Wood also said that a lot of the present panic was supply chain-related and there were some deflationary forces building up in the market that were pretty strong. She also noted that the “disruptive innovation that is evolving is going to disintermediate and disrupt the traditional world order”.
Our Methodology
The stocks were picked from the fourth quarter regulatory filings of ARK Investment Management. The losses for each stock over the past year are mentioned alongside other details for further clarity. The companies in which the fund increased a previously-held stake feature on the list.
Data from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each firm.
Cathie Wood of ARK Investment Management
Cathie Wood is Doubling Down on These Stocks Despite Losses
10. Zoom Video Communications, Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 56
Loss in Share Price Over Past Year: 69%
Percentage Increase in Stake During Q4: 21%
Zoom Video Communications, Inc. (NASDAQ:ZM) owns and runs a video communications platform. ARK owned 4.1 million shares of Zoom Video Communications, Inc. (NASDAQ:ZM) at the end of the fourth quarter of 2021 worth $1.1 billion, representing 2.77% of the portfolio.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Tiger Global Management LLC is a leading shareholder in Zoom Video Communications, Inc. (NASDAQ:ZM) with 4.7 million shares worth more than $1.2 billion.
Just like Tesla, Inc. (NASDAQ:TSLA), Roku, Inc. (NASDAQ:ROKU), and Teladoc Health, Inc. (NYSE:TDOC), Zoom Video Communications, Inc. (NASDAQ:ZM) is one of the stocks that growth investors have their eye on.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Zoom Video Communications, Inc. (NASDAQ:ZM) was one of them. Here is what the fund said:
“We concluded our campaigns in Zoom Video Communications, Inc. (NASDAQ:ZM). We have been paring our position in Zoom Video Communications, Inc. (NASDAQ:ZM) for several quarters, anticipating the reduced need for video conferencing as vaccination rates climb and people return to their workplaces. That said, we believe there is a strong case to be made that the pandemic has prompted a permanent inflection in videoconferencing’s importance—sustainably higher remote work arrangements, more online learning and less business travel. Furthermore, the company’s dramatically expanded user base (up 485% YoY in Q3) positions it well to cross sell additional services, Zoom Phone in particular. The long-term future remains bright, but we decided to end our successful investment campaign in favor of opportunities in our pipeline with more attractive near-term growth prospects.”
9. Invitae Corporation (NYSE:NVTA)
Number of Hedge Fund Holders: 24
Loss in Share Price Over Past Year: 38%
Percentage Increase in Stake During Q4: 22%
Invitae Corporation (NYSE:NVTA) operates as a medical genetics firm. Top hedge funds hold large stakes in the company. At the end of the third quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Invitae Corporation (NYSE:NVTA), down from 31 in the preceding quarter worth $2.1 billion.
Latest data shows that ARK owned close to 26 million shares of Invitae Corporation (NYSE:NVTA) at the end of December 2021 worth $736 million, representing 1.76% of the total portfolio.
8. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 35
Loss in Share Price Over Past Year: 60%
Percentage Increase in Stake During Q4: 22%
Palantir Technologies Inc. (NYSE:PLTR) operates as an application software firm. Securities filings show that ARK owned over 37 million shares in Palantir Technologies Inc. (NYSE:PLTR) at the end of the fourth quarter of 2021 worth $895 million, representing 2.14% of the portfolio.
At the end of the third quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Palantir Technologies Inc. (NYSE: PLTR), up from 26 in the preceding quarter worth $1.3 billion.
In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks andPalantir Technologies Inc. (NYSE:PLTR) was one of them. Here is what the fund said:
“In October, we bought a stake in Palantir Technologies Inc. (NYSE:PLTR). Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir Technologies Inc. (NYSE:PLTR) is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companies to make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir Technologies Inc. (NYSE:PLTR) has a long runway of growth ahead.”
7. Berkeley Lights, Inc. (NASDAQ:BLI)
Number of Hedge Fund Holders: 18
Loss in Share Price Over Past Year: 90%
Percentage Increase in Stake During Q4: 24%
Berkeley Lights, Inc. (NASDAQ:BLI) is a digital cell biology company. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Two Sigma Advisors is a leading shareholder in Berkeley Lights, Inc. (NASDAQ:BLI) with 1.1 million shares worth more than $23 million.
Regulatory filings reveal that ARK owned over 8.5 million shares of Berkeley Lights, Inc. (NASDAQ:BLI) at the end of December 2021 worth $166 million, representing 0.39% of the total portfolio.
6. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 50
Loss in Share Price Over Past Year: 47%
Percentage Increase in Stake During Q4: 25%
Coinbase Global, Inc. (NASDAQ:COIN) owns and runs a cryptocurrency exchange platform. The hedge fund chaired by Wood owned close to 7 million shares of Coinbase Global, Inc. (NASDAQ:COIN) at the end of December 2021 worth $1.5 billion.
Coinbase Global, Inc. (NASDAQ:COIN) is one of the top crypto stocks in the finance world. Among the hedge funds being tracked by Insider Monkey, New York-based firm ARK Investment Management is a leading shareholder in Coinbase Global, Inc. (NASDAQ:COIN) with 6.9 million shares worth more than $1.5 billion.
Along with Tesla, Inc. (NASDAQ:TSLA), Roku, Inc. (NASDAQ:ROKU), and Teladoc Health, Inc. (NYSE:TDOC), Coinbase Global, Inc. (NASDAQ:COIN) is one of the stocks on the radar of elite investors.
In its Q3 2021 investor letter, Hayden Capital, an asset management firm, highlighted a few stocks and Coinbase Global, Inc. (NASDAQ:COIN) was one of them. Here is what the fund said:
“Coinbase Global, Inc. (NASDAQ:COIN): We established a new position in Coinbase, the dominant US crypto exchange and brokerage, this quarter. Given the misperceptions and early-stage nature of the industry, I thought it would be helpful for our partners’ understanding to share a report outlining our thesis, which we published on October 31st.
At a high level, we believe the crypto economy is in the middle of “crossing the chasm” into mainstream adoption & use cases, which will result in millions of mainstream users needing to transact in crypto in some form.
Coinbase Global, Inc. (NASDAQ:COIN) is well positioned in the Western, regulated markets to capture this influx – considering their dominant market share / mindshare, their focus on the casual user and thus superior user experience compared to alternatives, and their position as a “toll-booth” for this industry. Longer-term, we also believe Coinbase Global, Inc. (NASDAQ:COIN) has “super-app” ambitions, and will be the primary gateway for both the general population and institutions to interact with the crypto economy…” (Click here to see the full text)
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Disclosure. None. Cathie Wood is Doubling Down on These 10 Stocks Despite Losses is originally published on Insider Monkey.
