Cathie Wood’s 2022 Portfolio: 5 Small-Cap Stock Picks

1. Beam Therapeutics Inc. (NASDAQ:BEAM)

ARK Investment Management’s 13 Portfolio: 1.96% 

ARK Investment Management’s Stake Value: $469.9 million

Number of Hedge Fund Holders: 22

Market Cap: $2.21 billion

Beam Therapeutics Inc. (NASDAQ:BEAM) is the largest small-cap holding in the Q1 2022 portfolio of Cathie Wood. The famed investor owned 8.2 million shares worth roughly $470 million in the firm, making her its biggest shareholder. Based in Cambridge, Massachusetts, Beam Therapeutics Inc. (NASDAQ:BEAM) develops precision genetic medicines for patients with serious diseases such as sickle cell disease, thalassemia and leukemia, among others.

On April 28, Credit Suisse analyst Richard Law initiated coverage of Beam Therapeutics Inc. (NASDAQ:BEAM) with a Neutral rating and a price target of $62. In January, the firm announced a four-year research collaboration with Pfizer Inc. (NYSE:PFE) to develop in vivo base editing therapies targeting three undisclosed targets for rare genetic diseases of the liver, muscle and central nervous system. Beam Therapeutics Inc. (NASDAQ:BEAM) will receive $300 million as an upfront payment, and will also be eligible to receive up to $1.05 billion in future milestones.

Investors were seen buying up on Beam Therapeutics Inc. (NASDAQ:BEAM) stock at the close of the fourth quarter of 2021, where 22 hedge funds held positions in the firm with a combined value of $1.17 billion. In contrast, 20 hedge funds held stakes worth $1.24 billion in the firm a quarter ago.

Baron Funds, an investment firm, talked about many stocks in its Q1 2021 investor letter, and Beam Therapeutics Inc. (NASDAQ:BEAM) was one of them. The fund said:

“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.”

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