Cathie Wood’s Fund Starts to Rebound: 10 Stocks to Watch

Published July 14, 2022 at 8:40 am EDT Updated September 7, 2026 at 2:18 pm EDT

In this article, we discuss 10 stocks to watch as Cathie Wood’s fund starts to rebound.

Growth investors who profited from the tech-led disruption of the market at the height of the pandemic, like Cathie Wood of ARK Investment Management, have had a dreadful 2022 so far as soaring inflation and rising interest rates lead to recession fears and force investors away from growth equities. The flagship ARK Innovation ETF offered by her fund, which was one of the best-performing funds of 2020 with a gain of over 152%, has registered eight straight months of decline and is down by more than 62% in the past year.

Wood, who has stuck by her growth-focused investment strategy despite tremendous pressure to sell, recently claimed in a webinar that the central bank is making “a mistake” in monetary policy by sticking to a plan for rate hikes. Wood pointed to bloated inventories of retailers as an example to make her point, predicting that “there are all kinds of deflationary signals” which will eventually force the Fed “to pivot and reverse policy”. Wood’s predictions carry weight, as her flagship fund is up over 18% this month compared to a 1.7% gain for the S&P 500 Index.

Some of the top stocks to watch out for in the Wood portfolio as deflationary pressures increase include Amazon.com, Inc. (NASDAQ:AMZN), Sea Limited (NYSE:SE), and Tesla, Inc. (NASDAQ:TSLA). Inflows into the ARK Innovation ETF, which did not drop in tandem with the drawdown of the market, are also up this month, with Bloomberg reporting that the fund has amassed over $300 million in capital in July. So far this year, even though the fund is down over 50%, it has recorded inflows of close to $2 billion, highlighting that investors still trust Wood.

Our Methodology

The following stocks were picked from the investment portfolio of ARK Investment Management as of the end of the first quarter of 2022. Only equities that have registered a more than 5% increase in share price in the past month were selected. In order to provide readers with a more comprehensive overview of the companies, the analyst ratings for each firm are mentioned alongside other details. A database of around 900 elite hedge funds tracked by Insider Monkey was used to quantify the popularity of each stock in the hedge fund universe.

Cathie Wood's Fund Starts to Rebound: 10 Stocks to Watch

Cathie Wood of ARK Investment Management

Cathie Wood’s Fund Starts to Rebound: Stocks to Watch

10. Robinhood Markets, Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holders: 19

Gain in Share Price Over Past Month as of July 14: 15.63%

Robinhood Markets, Inc. (NASDAQ:HOOD) owns and runs a financial services platform. ARK owned over 33 million shares of Robinhood Markets, Inc. at the end of the first quarter of 2022 worth $337 million, representing 1.99% of the portfolio. Robinhood stock has soared since late June on the back of reports that cryptocurrency exchange FTX is exploring a possible takeover of the company. Sam Bankman-Fried, the CEO of FTX, has recently disclosed that an FTX-related unit has a 7.6% stake in Robinhood.

On July 12, JMP Securities analyst Devin Ryan maintained an ‘Outperform’ rating on Robinhood Markets, Inc. stock and lowered the price target to $28 from $36, noting that the “upside now far outweighs the downside” in the alternative asset management space.

At the end of the first quarter of 2022, 19 hedge funds tracked by the database of Insider Monkey held stakes worth $947 million in Robinhood Markets, Inc., compared to 34 positions in the previous quarter worth $1.5 billion.

Just like Amazon.com, Inc., Sea Limited, and Tesla, Inc., Robinhood Markets, Inc. is one of the stocks in the limelight as growth stocks undergo a broad correction in value.

In its Q4 2021 investor letter, Claret Asset Management, an asset management firm, highlighted a few stocks and Robinhood Markets, Inc. was one of them. Here is what the fund said:

“Robinhood Markets, Inc. went public at $38 a share at the end of July of this year. After a oneday decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that Robinhood Markets, Inc. does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, Robinhood Markets, Inc. is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”

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

Number of Hedge Fund Holders: 35

Gain in Share Price Over Past Month as of July 14: 64.67%

Intellia Therapeutics, Inc. (NASDAQ:NTLA) operates as a genome editing firm. Securities filings show that ARK owned over 9.5 million shares in Intellia Therapeutics, Inc. at the end of the first quarter of 2022 worth $439 million, representing 2.59% of the portfolio’s value. In late June, the company announced that an experimental in vivo gene editing treatment, NTLA-2001, was found to have a lasting therapeutic effect over 12 months in transthyretin amyloidosis. Regeneron Pharmaceuticals is collaborating with Intellia on the study.

On June 24, Piper Sandler analyst Swapnil Malekar maintained an ‘Overweight’ rating on Intellia Therapeutics, Inc. stock with a price target of $171, noting that an upcoming drug candidate of the firm was showing “durability across all four dose cohorts”.

At the end of the first quarter of 2022, 35 hedge funds monitored by the database of Insider Monkey held stakes worth $1.1 billion in Intellia Therapeutics, Inc., compared to 31 in the preceding quarter with positions worth $1.5 billion.

8. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 72

Gain in Share Price Over Past Month as of July 14: 5.93%

Shopify Inc. (NYSE:SHOP) provides an ecommerce platform and related services. The hedge fund chaired by Wood owned close to 1.2 million shares of Shopify Inc. at the end of March 2022 worth $455 million, representing 2.69% of the value of ARK’s 13F portfolio. In early July, the company announced that it was delaying an employee compensation overhaul package. As part of the package, employees would be given the choice to get part of their salary in cash and part in stock. The package, per reports, is being pushed back until September.

On July 7, Evercore ISI analyst Mark Mahaney maintained an ‘Outperform’ rating on Shopify Inc. stock and lowered the price target to $560 from $660, noting that consumer demand was softening and recession fears were rising.

At the end of the first quarter of 2022, 72 hedge funds tracked by Insider Monkey’s database held stakes worth $5.7 billion in Shopify Inc., compared to 86 funds in the preceding quarter with stakes worth $12 billion.

In its Q1 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Shopify Inc. was one of them. Here is what the fund said:

“We added to the Portfolio’s position in e-commerce company Shopify Inc. in the first quarter after a sharp share-price decline. This brought the Portfolio’s weighting in the company to 2%. We believe Shopify provides a uniquely positioned platform, and we like the company’s strategy of continuing to invest in its business in an effort to strengthen its competitive advantages. The market’s affinity for businesses like Shopify Inc. may have changed, which created an opportunity for us to build our position in the company at what we believed to be compelling valuations.”

7. CRISPR Therapeutics AG (NASDAQ:CRSP)

Number of Hedge Fund Holders: 37

Gain in Share Price Over Past Month as of July 14: 38.87%

CRISPR Therapeutics AG (NASDAQ:CRSP) operates as a gene-editing firm. Securities filings show that ARK owned over 9.7 million shares in CRISPR Therapeutics AG at the end of the first quarter of 2022 worth $564 million, representing 3.33% of its 13F portfolio. The firm recently held an Innovation Day to showcase its entire drug pipeline. The details given by the firm indicate that it will be able to commercialize the first ever CRISPR gene therapy, a functional cure for TDT and Sickle Cell Disease, in the coming months.

On July 23, Oppenheimer analyst Jay Olson maintained an ‘Outperform’ rating on CRISPR Therapeutics AG stock and lowered the price target to $122 from $150, noting the firm had a “promising tool to achieve a functional cure for many diseases”.

At the end of the first quarter of 2022, 37 hedge funds held stakes worth $821 million in CRISPR Therapeutics AG, compared to 34 in the preceding quarter with $994 million in holdings.

6. UiPath Inc. (NYSE:PATH)

Number of Hedge Fund Holders: 33

Gain in Share Price Over Past Month as of July 14: 7.04%

UiPath Inc. (NYSE:PATH) provides robotic process automation services. The latest data shows that ARK owned close to 37 million shares of UiPath Inc. at the end of March 2022 worth $641 million, representing 3.79% of the value of its 13F portfolio. The firm posted earnings for the first quarter of 2022 on June 1, reporting revenue of $245 million, up more than 31% over the same period last year and beating market estimates by more than $19 million.

On July 7, Canaccord analyst Kingsley Crane assumed coverage of UiPath Inc. stock with a ‘Buy’ rating and a price target of $25, noting that the firm has the ability to leverage its automation capabilities across a broad set of use cases, while its partners should provide it with critical sales leverage.

At the end of the first quarter of 2022, 33 hedge funds tracked by the database of Insider Monkey held stakes worth $1.3 billion in UiPath Inc., compared to 28 funds in the preceding quarter with stakes worth $2.5 billion.

In addition to Amazon.com, Inc., Sea Limited, and Tesla, Inc., UiPath Inc. is one of the stocks that hedge funds are monitoring as buying opportunities open up in the growth sector.

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

“We participated in the IPO of UiPath, a developer of software for robotic process automation that uses AI, natural language processing and design to streamline complex processes across a variety of technology environments. The company is an industry leader with a superior solution for leveraging software to optimize workloads. Organizations around the world are beginning to understand the power of automation, with momentum picking up toward fully automating business processes, a $60 billion market today that could grow to $200 billion or more by 2030. UiPath has a unique pricing model, broad partner ecosystem and thoughtful management team supporting one of the strongest growth profiles in technology. Risks we are watching include a partial cloud transition ahead and increased competition from larger software platforms over time.”

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

Number of Hedge Fund Holders: 36

Gain in Share Price Over Past Month as of July 14: 37.00%

Teladoc Health, Inc. (NYSE:TDOC) markets virtual healthcare services and is headquartered in New York. Regulatory filings reveal that ARK owned over 20 million shares of Teladoc Health, Inc. at the end of March 2022 worth $691 million, representing 4.09% of the fund’s total portfolio value. Teladoc provides virtual health services for conditions such as diabetes, hypertension, chronic kidney disease, cancer, congestive heart failure, and mental health disorders.

On July 7, Piper Sandler analyst Jessica Tassan maintained an ‘Overweight’ rating on Teladoc Health, Inc. stock with a price target of $42, noting the firm was on track to deliver an inline second quarter print in the chronic care business.

At the end of the first quarter of 2022, 36 hedge funds held stakes worth $1.9 billion in Teladoc Health, Inc., compared to 39 in the previous quarter with positions worth $2.4 billion.

In its Q1 2022 investor letter, RiverPark Funds, 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. is the largest telehealth provider in the US and has recently begun to expand internationally. TDOC’s platform enables an ever-expanding list of patient-doctor interactions (including those for primary health care, mental health issues and chronic condition management) to transition from an on-site visit to one that can be done remotely with full video- based interaction. TDOC provides its platform of services on both a business-to-business and direct-to-consumer basis, through monthly subscription-based relationships. For its core business-to-business clients, the company contracts with a wide range of entities, including large scale employers (the company currently contracts with over 50% of the Fortune 500), health plans, health systems, and medical insurance companies, which currently cover more than 50 million members. For these customers, the company provides a win-win-win, as patients spend no time traveling and less time waiting, doctors are more efficient seeing more patients in less time, and payers (employers and plan sponsors) save money while being able to offer a highly popular additional benefit for their employees. This B to B market is projected to be a +$100 billion market opportunity and Teladoc Health, Inc. is the clear global market leader. For its direct-to- consumer clients, the company provides a growing suite of services for individuals to have affordable access to on-demand and scheduled medical services, for which their current insurance does not provide reimbursement (such as extended mental health counseling).

Although the company has been growing steadily for well over a decade, the business has transformed over the past few years as the COVID pandemic caused a significant increase in the demand for virtual healthcare. In addition, the company’s 2020 acquisitions of Livongo, the leader in virtual chronic condition management, and InTouch a competitive telehealth platform, materially broadened the company’s product offerings. At its recent analyst day, management guided to 25-30% top line growth for each of the next three years, exiting 2024 with more than $4 billion in annual revenue. The company also anticipates expanding margins by 100-150 basis points per year in each of the next three years, while still accelerating its investments in marketing and R&D. As with many of our recent purchases, we took advantage of the decline in the company’s shares (down a breathtaking 70% from its 2021 high of almost $300 per share) to establish a small position in Teladoc Health, Inc..”

4. Exact Sciences Corporation (NASDAQ:EXAS)

Number of Hedge Fund Holders: 32

Gain in Share Price Over Past Month as of July 14: 25.98%

Exact Sciences Corporation (NASDAQ:EXAS) provides medical diagnostic test products. The latest data shows that ARK owned close to 15 million shares of Exact Sciences Corporation at the end of March 2022 worth $745 million, representing 4.41% of the total value of its 13F portfolio. In late April, the company posted its financial results for the first quarter of 2022, reporting revenue of $486 million, up 21% over the same period last year and beating analyst estimates by $26 million.

On July 5, Evercore ISI analyst Vijay Kumar maintained an ‘Outperform’ rating on Exact Sciences Corporation stock and lowered the price target to $60 from $100, adding the firm to the ‘Tactical Outperform’ list of the investment advisory.

At the end of the first quarter of 2022, 32 hedge funds tracked by the database of Insider Monkey held stakes worth $1.5 billion in Exact Sciences Corporation, compared to 34 funds in the previous quarter with $1.7 billion in holdings.

In its Q3 2021 investor letter, RiverPark Advisors, LLC, an asset management firm, highlighted a few stocks and Exact Sciences Corporation was one of them. Here is what the fund said:

“Exact Sciences: Exact Sciences Corporation shares declined on a disappointing recovery in Cologuard screening due to COVID. Despite continued revenue growth from Precision Oncology and COVID testing, and Cologuard screening revenue growth of 30%, COVID restrictions limited access to physicians’ offices for the company’s and its Pfizer Joint Venture sales force as well as causing a severe drop off of in-person wellness visits.

In the last year, Exact has also pivoted the company significantly from its single cancer screening tests (Cologuard for colon cancer and Oncotype for breast cancer) to multi-cancer screening through its Thrive acquisition, and to minimal residual disease and recurrence monitoring through its Ashion and Tardis acquisitions. Through this pivot, Exact Sciences Corporation has tripled its market opportunity from $20 billion to $60 billion.”

3. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 84

Gain in Share Price Over Past Month as of July 14: 6.38%

Block, Inc. (NYSE:SQ) provides payment services. Regulatory filings reveal that ARK owned over 9 million shares of Block, Inc. at the end of March 2022 worth $799 million, representing 4.72% of its 13F portfolio’s weighting. On July 13, the firm announced that it was partnering with prestigious beauty omni-retailer Sephora in a deal that would give customers of the latter the choice to pay for products through four installments. Sephora customers can use the Afterpay services of Block to buy products under the deal.

On July 11, Keefe Bruyette analyst Sanjay Sakhrani maintained an ‘Outperform’ rating on Block, Inc. stock and lowered the price target to $100 from $150, noting that lowering market multiples and macro uncertainty were reducing targets across the board.

At the end of the first quarter of 2022, 84 hedge funds held stakes worth $6.1 billion in Block, Inc., compared to 96 funds with $5.9 billion in stakes a quarter earlier.

In its Q1 2022 investor letter, Farrer Wealth Advisors, an asset management firm, highlighted a few stocks and Block, Inc. was one of them. Here is what the fund said:

“Block, Inc. (formerly Square): We ‘adopted’ Block’s stock after the company bought Afterpay, which we were investors in. We had been trimming the Afterpay position throughout 2021 and trimmed again after the acquisition, so the position was quite small. We held onto that small portion, as we did think the acquisition made sense and were excited to see the two companies integrate and for Block to create a closed loop network between merchants and consumers. However, the market punished most highly valued tech stocks over the last months, and we saw the position move against us by over 50%. We are firm believers that when a stock goes against you by 50%+, you need to do something about it. Either trim/sell and reinvest or buy more. In the case of Block, Inc., the original reason for holding was to see how the acquisition and integration with Afterpay panned out. The market did not give us the time to see this play out, thus we were not comfortable adding more to the position. Further for the stock to recover to our purchase price, we felt the company’s valuation would need to command a future exit multiple that the market would be unlikely to pay in this environment. Given this, we exited the remainder of the position.”

2. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Holders: 34

Gain in Share Price Over Past Month as of July 14: 17.14%

Roku, Inc. (NASDAQ:ROKU) owns and runs a TV streaming platform. The hedge fund chaired by Wood owned close to 10 million shares of Roku, Inc. at the end of March 2022 worth $962 million. The company has more than 60 million active accounts and offers services such as digital and video advertising, content distribution, subscription, and billing services, as well as other commerce transactions. It is based in California and was founded in 2002.

On July 12, Guggenheim analyst Michael Morris maintained a ‘Buy’ rating on Roku, Inc. stock and lowered the price target to $115 from $145, noting that “industry discussions continue to reflect incremental softness in ad demand”.

At the end of the first quarter of 2022, 34 hedge funds held a combined $1.7 billion in Roku, Inc. shares, down from 43 funds in the preceding quarter with $2.2 billion in shares.

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

“Since we bought Roku, Inc., no stock has contributed more to our returns and no stock has been more volatile in our portfolio. This is now our third drawdown in the stock of over 30% and our second of over 60%. Fortunately (or tactically) before the two 60% drawdowns we had trimmed our positions by at least a third, though unfortunately that meant we still held large slices of the stock on the way down. Despite the stock having soared too far, too fast and thinking it was due for a period of digestion, we believe over our timeframe even the former highs will be rewarded with a good result. We have often pointed out that volatility in companies like Roku is the market’s way of grappling with a really wide range of potential outcomes and that remains as true today as ever, though the range of outcomes continues to narrow for the better for Roku.

Roku, Inc. today is trading at lower multiples than at any point as a public company, meanwhile its revenue and margin composition has evolved from majority hardware to vast majority platform– in other words, each $1 of revenue is much more valuable today than ever before for Roku. Roku today is a profitable company for the first time in its history. Roku today has a multitude of investment opportunities within its own platform that can drive considerable value. Early in 2021 at higher prices, one had to believe the company would grow accounts internationally to justify valuations. This was so, because the company has so quickly achieved substantial penetration of the US market with 56.4m reported household customers of the ~130m total US households, that further growth in the US household count will be challenging and because prices were so high. Today, one merely needs to believe that with around 60 million households (the expectation for the yet reported year-end 2021 number), ARPU has a strong enough growth tailwind to reach $100 within a reasonable time, without relying on any incremental account growth. For context, as of Q3 this year, ARPU was $40, up 49% year-over-year and we know it will be higher in Q4. Growth in ARPU is underpinned by the continuing migration of viewer hours to CTV. The subforces behind this are increasing the penetration of Roku devices within households (go from one Roku to TV to 2-4), increasing the hours that each house watches (getting from shy of 4 hours to the nearly 8 hours an average American household watches TV) and broadening the content on the platform, increasing the share of inventory with content companies and more hours (like live sports viewing) shifting from linear to CTV. We further believe the opportunity to become the bundler and/or hub of household content subscriptions is growing, as evidenced by the rise in credit card pings per user from 1 to 1.3 per month and its continuing ascension. In this respect, Roku has the right to win with their installed base, because the experience is exponentially better than legacy and competing offerings…” (Click here to see the full text)

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 80

Gain in Share Price Over Past Month as of July 14: 7.31%

Tesla, Inc. markets electric vehicles and clean energy solutions. The latest regulatory data shows that ARK owned close to 1.4 million shares of Tesla, Inc. at the end of March 2022 worth $1 billion, representing 6.47% of the value of the fund’s 13F portfolio. On July 13, news agency Reuters reported that Panasonic, a key EV battery supplier for Tesla, was seeking to increase the energy density of each battery it supplies to the EV maker by 20% by the end of this decade. The change would boost the range of a Tesla EV by over 100 kilometers.

On July 13, Truist analyst William Stein initiated coverage of Tesla, Inc. stock with a ‘Buy’ rating and a price target of $1,000, backing the firm to “capture the pole position” in terms of unit share among EV auto makers and sell 10 million units per year by 2030.

At the end of the first quarter of 2022, 80 of the hedge funds that are tracked by the database of Insider Monkey held stakes worth $11 billion in Tesla, Inc., compared to 91 funds with $12 billion in holdings in Q4 2021.

Here is what Grantham Mayo Van Otterloo & Co. LLC had to say about Tesla, Inc. in its Q1 2022 investor letter:

“To put the demand growth for clean energy materials into perspective, let’s look at Tesla, Inc.. At its Battery Day last year, Tesla, Inc. projected three terawatt hours of lithium-ion battery capacity needed in 2030 for the EVs and storage they expect to produce. To reach this target, Tesla alone would gobble up approximately 75% of the world’s current nickel production and four times the world’s current lithium production. These numbers are astounding enough, but when one considers that EVs currently represent just 15% of global nickel demand and about 45% of lithium demand and that Tesla will likely be producing only a small proportion of the world’s EVs in 2030, the implications are staggering. Clean energy materials companies will make a lot more money in the decades to come than they ever have both because they will be selling a lot more metric tons of material and because there are certain to be shortages where supply can’t keep up with the rapidly growing demand.”

You can also take a peek at 10 Best Stocks for Animal Lovers and 10 Best Nickel Stocks to Buy Now.

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