In this article, we discuss Cathie Wood stock portfolio: 10 newest stock picks this year. If you want to skip our detailed analysis of these stocks, go directly to Cathie Wood Stock Portfolio: 5 Newest Stock Picks This Year.
Cathie Wood is a well-known star stock picker who manages disruptive innovation-focused portfolios through her ETFs. Wood founded ARK Investment Management in 2014 and manages a portfolio of more than $53.7 billion in assets with holdings concentrated in blockchain technology, fintech, electric vehicles, genomics, and artificial intelligence.
Wood’s flagship fund, ARK Innovation ETF (NYSEARCA:ARKK), gained 152% in 2020. Some of Wood’s biggest holdings included in ARK Innovation ETF (NYSEARCA:ARKK) are electric vehicle maker Tesla, Inc. (NASDAQ:TSLA), telemedicine provider Teladoc Health, Inc. (NYSE:TDOC), and TV streaming platform Roku, Inc. (NASDAQ:ROKU).
Cathie Wood is also a long-time bull of bitcoin. On September 6, during a Yahoo Finance interview, Cathie Wood said:
“Bitcoin, in particular, is a new global monetary system. It’s a rules-based monetary policy, which is completely decentralized and therefore is not subject to the whims of policymakers. In fact, it’s a hedge against the whims of policymakers, especially in emerging markets.”
Cathie began her position in cryptocurrency trading platform Coinbase Global, Inc. (NASDAQ:COIN) on April 14, when she purchased $246 million worth of shares in the company’s IPO. According to Cathie Wood’s latest SEC 13F filings, the hedge fund owned 5,617,415 shares of Coinbase Global, Inc. (NASDAQ:COIN) worth $1.42 billion as of August 5, 2021, accounting for 2.64% of ARK Investment Management LLC’s holdings.
Some of the newest stock picks that Cathie Wood added in ARK Investment Management LLC’s holdings in 2021 are biotech companies Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), Berkeley Lights, Inc. (NASDAQ:BLI), and Verve Therapeutics, Inc. (NASDAQ:VERV). Surprisingly, the hedge fund manager initiated her stakes in entertainment blue-chip stock The Walt Disney Company (NYSE:DIS) and e-commerce platform Etsy, Inc. (NASDAQ:ETSY) this year as well.
Our Methodology
We made a list of some of the newest picks of Cathie Wood as of the second quarter of 2021.
We ranked these stocks based on the number of hedge funds having stakes in them, based on our data of over 873 hedge funds.
Why should we pay attention to Cathie Wood’s stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Cathie Wood Stock Portfolio: Newest Stock Picks This Year
10. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: N/A
On July 29, ARK Investment Management purchased 1,297,615 shares of Robinhood Markets, Inc. (NASDAQ:HOOD) on its first day of trading, for a total of $45.2 million. As of September 27, Cathie Wood owns 5,209,663 shares of Robinhood Markets, Inc. (NASDAQ:HOOD) worth $233 million, in her flagship fund, ARK Innovation ETF (NYSEARCA:ARKK).
On August 23, Rosenblatt analyst Sean Horgan initiated a Buy rating on Robinhood Markets, Inc. (NASDAQ:HOOD) with a price target of $55 per share.
On September 22, shares of Robinhood Markets, Inc. (NASDAQ:HOOD) rose nearly 11% after the company announced plans to launch crypto wallets with a select group of clients in October.
In the second quarter of 2021, Robinhood Markets, Inc. (NASDAQ:HOOD) reported an EPS of $0.18, beating estimates by $0.44. The company’s revenue in the second quarter grew 131% year over year to $565 million and beat revenue estimates by $5.78 million.
9. TuSimple Holdings Inc. (NASDAQ:TSP)
Number of Hedge Fund Holders: 14
Based on Cathie Wood’s SEC 13F filings, the hedge fund owned 6,472,735 shares of TuSimple Holdings Inc. (NASDAQ:TSP) worth $461 million as of August 5, 2021. This represents 0.85% of the total holdings of ARK Investment Management. Cathie Wood started purchasing TuSimple Holdings Inc. (NASDAQ:TSP) stock for two of her ETFs, ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) and ARK Innovation ETF (NYSEARCA:ARKK), on April 15, 2021, the same day the San Diego-based autonomous truck company went public.
On July 28, Morgan Stanley analyst Ravi Shanker kept TuSimple Holdings Inc. (NASDAQ:TSP) at Overweight and raised his price target for the stock to $75 from $48, highlighting the company’s dominant position in autonomous trucking.
In the second quarter of 2021, TuSimple Holdings Inc. (NASDAQ:TSP) reported an EPS of -$0.64, missing estimates by -$0.25. The company’s revenue in the second quarter increased to $1.48 million, up from $263,000 in the second quarter of 2020.
8. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Number of Hedge Fund Holders: 15
Based on Cathie Wood’s SEC 13F filings, the hedge fund owned 2,378,675 shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) worth $86.8 million as of August 5, 2021. This represents 0.16% of the total holdings of ARK Investment Management. Cathie Wood purchased 72,660 shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) for her ARK Genomic Revolution ETF (BATS:ARKG) on April 19, 2021, following the company’s first public offering.
On September 21, Berenberg analyst Gal Munda initiated a Buy rating on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) with a price target of $37 per share.
In the second quarter of 2021, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) reported an EPS of -$0.31, missing estimates by -$0.07. But the company’s revenue in the second quarter grew to $2.5 million, up from $186,000 in the second quarter of 2020.
At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $451 million in Recursion Pharmaceuticals Inc. (NASDAQ:RXRX).
In the Q2 2021 Investor Letter, Baron Discovery Fund highlighted a few stocks, and Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is one of them. Here is what the fund said:
“Recursion Pharmaceuticals, Inc. is a biotechnology company engaged in technology-enabled drug discovery. The company uses automated wet-lab infrastructure (actual biologic experimentation) with cell perturbations (multiple experiments done on the duplicate cells), and image capture to generate data at a large scale. It also operates its own supercomputer (the “BioHive”) to drive “in-silico” (virtual, software-enabled) inferences based on its data and wet-lab experiments. This combined approach has generated a strong pipeline of programs spanning early discovery to clinical trials, including a collaboration deal with Bayer. The company’s use of artificial intelligence and machine learning lowers the cost of drug discovery and speeds up time to market, and we believe this paradigm is in the early innings of disrupting the entire biopharmaceutical industry. Since Recursion’s program pipeline is still relatively early stage, we have started with a small investment.”
7. Berkeley Lights, Inc. (NASDAQ:BLI)
Number of Hedge Fund Holders: 15
Cathie Wood currently holds 4.75 million shares of Berkeley Lights, Inc. (NASDAQ:BLI) worth $101 million in ARK Innovation ETF (NYSEARCA:ARKK) and 3.89 millions shares worth $82.8 million in ARK Genomic Revolution ETF (BATS:ARKG), as of September 27, 2021.
On September 17, JPMorgan analyst Tycho Peterson reiterated an Overweight rating on Berkeley Lights, Inc. (NASDAQ:BLI) with a price target of $100.
In the second quarter of 2021, Berkeley Lights, Inc. (NASDAQ:BLI) reported an EPS of -$0.27, missing estimates by -$0.04. Yet, the company’s revenue in the second quarter grew 82% year over year to $19.3 million.
At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $379 million in Berkeley Lights, Inc. (NASDAQ:BLI), down from 16 in the previous quarter worth $410 million.
The Walt Disney Company (NYSE:DIS), Etsy, Inc. (NASDAQ:ETSY), Robinhood Markets, Inc. (NASDAQ:HOOD), Coinbase Global, Inc. (NASDAQ:COIN) together with Berkeley Lights, Inc. (NASDAQ:BLI) are Cathie Wood’s newest stock picks in her hedge fund ARK Investment Management LLC.
6. Verve Therapeutics, Inc. (NASDAQ:VERV)
Number of Hedge Fund Holders: 28
Verve Therapeutics, Inc. (NASDAQ:VERV) is a biotech company based in Massachusetts that ranks sixth on the list of Cathie Wood stock portfolio’s new picks. The company develops gene-editing drugs for the treatment of patients with cardiovascular diseases.
Cathie Wood first purchased 24,634 shares of Verve Therapeutics, Inc. (NASDAQ:VERV) on July 12. As of September 27, ARK Genomic Revolution ETF (BATS:ARKG) holds 1,274,153 shares of Verve Therapeutics, Inc. (NASDAQ:VERV) worth $63.6 million.
On September 23, investment advisory firm Stifel initiated a Hold rating on Verve Therapeutics, Inc. (NASDAQ:VERV) with a price target of $58.
In the second quarter of 2021, Verve Therapeutics, Inc. (NASDAQ:VERV) reported an EPS of -$1.10, missing estimates by -$0.61.
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Disclosure. None. Cathie Wood Stock Portfolio: 10 Newest Stock Picks This Year is originally published on Insider Monkey.
