Cathie Wood’s 10 Stock Picks for the Next 5 Years

Published March 21, 2022 at 2:25 pm EDT Updated September 7, 2026 at 2:06 pm EDT

In this article, we discuss Cathie Wood’s 10 stock picks for the next 5 years.

Cathie Wood of ARK Investment Management was one of the most successful investors of the pandemic years. Her flagship ARK Innovation ETF returned more than 152% to investors in 2020 and continued to climb as the pandemic waned in 2021. However, towards the backend of last year and throughout 2022, this growth-focused fund has tanked by over 50%, losing around $13 billion in value. Wood, who is criticized for her “disruptive innovation” investment strategy, has refused to back down, instead doubling down on her growth bets during this period.

ARK Continues to Attract Investors Despite Losses

Between October and December 2021, ARK Investment Management lost over $8 billion in value. Her innovation ETF is now down almost 63% from a high in February 2021. Despite this shock, investors continued to pour money into the fund. According to data compiled by fintech advisor Lipper, Wood has attracted inflows of over $2 billion in the past few months even as the broader growth market slumps amid rising interest rates. Wood has described her portfolio as one of “deep value” that would bear fruits in the coming five years.

Some of the top stocks that Wood was bullish on at the end of the fourth quarter of 2021 included Twitter, Inc. (NYSE:TWTR), CRISPR Therapeutics AG (NASDAQ:CRSP), and Invitae Corporation (NYSE:NVTA), among others discussed in detail below.

Our Methodology

The stocks were picked from the fourth quarter regulatory filings of ARK Investment Management. The companies in which the fund has held a stake for the past five years were selected for the list.

Data from around 900 elite hedge funds tracked by Insider Monkey in Q4 2021 was used to identify the number of hedge funds that hold stakes in each firm.

Cathie Wood's 10 Stock Picks for the Next 5 Years

Cathie Wood of ARK Investment Management

Cathie Wood’s Stock Picks for the Next 5 Years

10. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 91

Tesla, Inc. (NASDAQ:TSLA) markets electric vehicles and clean energy solutions. Hedge funds have been piling into the stock in recent months. At the end of the fourth quarter of 2021, 91 hedge funds in the database of Insider Monkey held stakes worth $12.9 billion in Tesla, Inc., compared to 60 in the previous quarter worth $10.6 billion.

Latest data shows that ARK owned 1.9 million shares of Tesla, Inc. at the end of the fourth quarter of 2021 worth more than $2 million, representing 6.15% of the portfolio. The company has been in the ARK portfolio, with a small gap in 2017, since the fourth quarter of 2016.

Just like Twitter, Inc. (NYSE:TWTR), CRISPR Therapeutics AG (NASDAQ:CRSP), and Invitae Corporation (NYSE:NVTA), Tesla, Inc. is one of the stocks that is on the radar of elite growth investors.

Here is what Baron Partners Fund has to say about Tesla, Inc. in its Q1 2021 investor letter:

“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. Tesla, Inc. stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”

9. Teladoc Health, Inc. (NYSE:TDOC)

Number of Hedge Fund Holders: 39

Teladoc Health, Inc. (NYSE:TDOC) provides virtual healthcare services. Securities filings show that ARK owned 18.9 million shares of Teladoc Health, Inc. at the end of December 2021 worth $1.7 billion, representing 5.25% of the portfolio. The company has been in the ARK portfolio since the first quarter of 2018.

Teladoc Health, Inc. remains a top virtual health stock on Wall Street. At the end of the fourth quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Teladoc Health, Inc., compared to 40 in the previous quarter worth $2.8 billion.

In its Q4 2020 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Teladoc Health, Inc. was one of them. Here is what the fund said:

“Teladoc Health, Inc. offers remote physician access to patients at home. After experiencing incredible levels of growth throughout the early stages of the pandemic as its unique value proposition rose to the forefront of the healthcare industry, the firm’s shares cooled off a bit as optimistic vaccine data slightly curtailed investor expectations for the firm’s future growth potential. We sold Teladoc Health, Inc..”

8. Twilio Inc. (NYSE:TWLO)

Number of Hedge Fund Holders: 80

Twilio Inc. (NYSE:TWLO) owns and runs a cloud communications platform. Elite hedge funds hold bullish positions in the stock. Among the hedge funds being tracked by Insider Monkey, California-based investment firm SCGE Management is a leading shareholder in Twilio Inc., with 2 million shares worth more than $539 million.

Regulatory filings reveal that ARK owned 4 million shares of Twilio Inc. at the end of the fourth quarter of 2021 worth $1 billion, representing 3.23% of the portfolio. The company has been in the ARK portfolio, excluding minor absences in 2017 and 2018, since the fourth quarter of 2016.

In its Q3 2021 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Twilio Inc. was one of them. Here is what the fund said:

“Twilio Inc. shares were also a top detractor for the quarter. Just like after 1Q, despite another quarterly beat in 2Q, management guidance–which we believe to be conservative–disappointed some investors. Second quarter revenue of $669 million was up 67% year over year, significantly exceeding management’s guidance of 47%-50% revenue growth. Management guided 3Q21 revenue to 50%-52% revenue growth, which was ahead of expectations, but due to continued investment also guided to a non-GAAP operating loss of $25 million-$30 million, which was below the Street’s forecast of a $12 million loss.

The COVID crisis has accelerated the adoption of the company’s cloud-based, integrated communications platform that allows companies in a wide range of businesses to embed digital communications capabilities (video, chat, voice, SMS, fax, and email) into their customer facing applications without needing to build back-end infrastructure and interfaces. Twilio’s total addressable market is now greater than $40 billion, which should grow by 50% over the next few years, providing a strong secular tailwind for the company. We expect the company’s gross margin to continue to expand from 54% in the second quarter toward management’s long-term goal of 60%-65%, and, as the company grows to scale, we expect its non-GAAP operating margin to expand to 25%.”

7. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 96

Block, Inc. (NYSE:SQ) provides payments services. Latest 13F filings show that ARK owned over 6.1 million shares of Block, Inc. at the end of December 2021 worth $997 million, representing 3.01% of the portfolio. The firm has been in the ARK portfolio since the fourth quarter of 2016.

Block, Inc. is a favorite payments stock in the finance world. At the end of the fourth quarter of 2021, 96 hedge funds in the database of Insider Monkey held stakes worth $5.9 billion in Block, Inc., compared to 98 in the preceding quarter worth $8.8 billion.

In its Q1 2021 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Block, Inc. was one of them. Here is what the fund said:

“We established a position in leading Financial Technology provider Block, Inc. during the quarter. Through one integrated system, Block, Inc. is a hybrid of two businesses: its Seller Business (charging small and medium-sized businesses about 3% for transaction payment processing, plus other services such as instant funds access, and software for everything from customer engagement to payroll), and its Cash App (originally for person-to-person cash transfers and now a growing digital financial services provider for consumers).

The combined business has grown gross profit at a 37% CAGR over the past five years to $2.7 billion (due to pass through costs, gross profit is more reflective of top-line growth) and we believe that Block, Inc. has an enormous long-term runway, as it has less than a 2% share of a more than $160 billion market. It is our view that the company’s Cash App (which has grown from nothing in 2015 to $1.2 billion gross profit last year) has a particularly large opportunity with its powerful ecosystem of digital financial services including digital wallets, direct deposits, stock trading, bitcoin trading, and business and tax services, which are all relatively new. The vast majority of Cash App’s more than 36 million users are younger and, importantly, are willing to replace their bank and other financial services accounts with the app.

We estimate that Block, Inc. can grow its gross profit more than 30% and EBITDA more than 50% annually for the foreseeable future, and while most of the company’s current profit is from its Seller Business, we believe most of the company’s future value will be from its Cash App business.”

6. Intellia Therapeutics, Inc. (NASDAQ:NTLA)

Number of Hedge Fund Holders: 31

Intellia Therapeutics, Inc. (NASDAQ:NTLA) operates as a genome editing firm. Major hedge funds hold large stakes in the company. Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Viking Global is a leading shareholder in Intellia Therapeutics, Inc., with 1.5 million shares worth more than $186 million.

Latest 13F filings show that ARK owned 7.9 shares of Intellia Therapeutics, Inc. at the end of December 2021 worth $936 million, representing 2.82% of the portfolio of the fund. The firm has been in the ARK portfolio since the fourth quarter of 2016.

In addition to Twitter, Inc. (NYSE:TWTR), CRISPR Therapeutics AG (NASDAQ:CRSP), and Invitae Corporation (NYSE:NVTA), Intellia Therapeutics, Inc. is one of the stocks that institutional investors are buying.

5. Twitter, Inc. (NYSE:TWTR)

Number of Hedge Fund Holders: 83

Twitter, Inc. owns and runs a social networking platform. Hedge funds have been dumping the stock amid a broader lull around growth stocks. At the end of the fourth quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $3.1 billion in Twitter, Inc., compared to 94 in the preceding quarter worth $6.3 billion.

Latest data shows that ARK owned over 17.2 million shares of Twitter, Inc. at the end of December 2021, worth over $745 million. Wood had first bought a stake in the firm during the fourth quarter of 2016.

RGA Investment Advisors, in its Q1 2021 investor letter, mentioned Twitter, Inc.. Here is what the fund has to say in its letter:

“‘The bird has wings’—Twitter’s quarter started off somewhat ominously, with Twitter, Inc. the worst performing stock in the S&P 500 following the January 6th insurrection and questions about the stickiness of the user base after permanently suspending the account of President Trump.8 By the end of the quarter, Twitter, Inc. was one of the best performers in the index after exceptionally strong fourth quarter earnings and guidance for the year and an upbeat analyst day that highlighted a rapidly evolving product roadmap placing the timeline at the center of ephemeral (fleets), long form (Revue) and voice (Spaces). The improvements to the experience makes the platform more accessible and provides more opportunity to continue growing the user base. Importantly, Twitter, Inc. also embraced what we have been calling “creative empowerment” in previewing SuperFollows and a host of features designed to help content creators and contributors monetize their own audience on Twitter, Inc. itself. These developments, alongside considerable progress on the advertising platform give us growing conviction that Twitter, Inc. will deliver on its largely untapped opportunity—in other words, the value creation opportunity on top of the low multiple we were able to build our position at. Elliot spoke at length about these developments on Yet Another Value Podcast with Andrew Walker and The Business Brew with Bill Brewster, which we invite you to check out.”

4. CRISPR Therapeutics AG (NASDAQ:CRSP)

Number of Hedge Fund Holders: 34

CRISPR Therapeutics AG is a gene-editing firm. CRISPR Therapeutics AG has featured in the ARK portfolio, with minor interruptions, since the second quarter of 2017. The fund owned over 9 million shares in the company at the end of December 2021 worth $688 million.

Institutional investors hold large stakes in CRISPR Therapeutics AG. At the end of the fourth quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $994 million in CRISPR Therapeutics AG, compared to 43 in the preceding quarter worth $1.2 billion.

3. Trimble Inc. (NASDAQ:TRMB)

Number of Hedge Fund Holders: 32

Trimble Inc. (NASDAQ:TRMB) provides technology solutions to a variety of industries. Elite hedge funds are bullish on the stock. Among the hedge funds being tracked by Insider Monkey, London-based firm Impax Asset Management is a leading shareholder in Trimble Inc., with 8.5 million shares worth more than $741 million.

Trimble Inc. has been featured on the ARK portfolio since the fourth quarter of 2016. The fund owned over 4.7 million shares in the company at the end of the fourth quarter of 2021 worth $417 million, representing 1.26% of the portfolio.

2. Invitae Corporation (NYSE:NVTA)

Number of Hedge Fund Holders: 24

Invitae Corporation is a medical genetics company. ARK had first purchased a stake in the company during the fourth quarter of 2016. The fund has since added to that stake and now owns 26.7 million shares worth $407 million.

The hedge fund sentiment around Invitae Corporation is mixed. At the end of the fourth quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $958 million in Invitae Corporation, the same as in the preceding quarter worth $1.8 billion.

1. Veracyte, Inc. (NASDAQ:VCYT)

Number of Hedge Fund Holders: 16

Veracyte, Inc. (NASDAQ:VCYT) is a California-based diagnostics company. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Veracyte, Inc., with 1.1 million shares worth more than $48 million.

Veracyte, Inc. has been in the ARK portfolio since the fourth quarter of 2016. The hedge fund added to this holding aggressively during the last two quarters of 2021 and presently owns more than 8.2 million shares worth $338 million.

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