In this article, we discuss the 5 new stocks that Cathie Wood added to her portfolio in Q4 2021. If you want to read our comprehensive analysis of ARK Investment Management’s investment strategy, go directly to Cathie Wood’s Latest Portfolio: 10 New Stock Picks.
5. Burning Rock Biotech Limited (NASDAQ:BNR)
ARK Investment Management’s Stake Value: $8.07 million
Percentage of ARK Investment Management’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 11
Burning Rock Biotech Limited (NASDAQ:BNR) is a Chinese biopharmaceutical firm that offers cancer diagnostic tests for a range of cancer types and operates through the segments: Central Laboratory Business, In-Hospital Business, and Pharma Research and Development Services. Cathie Wood added the firm’s stock to her portfolio over the fourth quarter, with roughly 848,000 shares worth $8.07 million, representing 0.02% of her overall portfolio.
Investors were bullish on Burning Rock Biotech Limited (NASDAQ:BNR) at the close of the third quarter, with 11 hedge funds holding positions with a combined value of $52.5 million. This is in comparison to 9 hedge funds with $81.7 million worth of holdings in Burning Rock Biotech Limited (NASDAQ:BNR) in Q2 2021.
In December, Burning Rock Biotech Limited (NASDAQ:BNR) announced that it expects its revenue for 2021 to be around RMB500 million, or ‘slightly above’. Although Covid restrictions hampered overall growth, in-hospital testing volumes have grown, and central-lab testing volumes also recorded improvements, underpinned by a positive market response to two products: DetermaRx and myChoice.
4. Endeavor Group Holdings, Inc. (NYSE:EDR)
ARK Investment Management’s Stake Value: $15.45 million
Percentage of ARK Investment Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 20
Endeavor Group Holdings, Inc. (NYSE:EDR) is a media, sports, and entertainment company that owns the rights to popular sports franchise UFC (Ultimate Fighting Championship), Pro Bull Riders, New York Fashion Week, and the Miami Open, along with other events.
Cathie Wood added Endeavor Group Holdings, Inc. (NYSE:EDR) to her portfolio in the fourth quarter, with approximately 443,000 shares valued at $15.45 million. With roughly 91 million shares worth $3.2 billion, Silver Lake Partners is the leading shareholder of Endeavor Group Holdings, Inc. (NYSE:EDR) at the end of the fourth quarter.
20 hedge funds were long Endeavor Group Holdings, Inc. (NYSE:EDR) at the close of the third quarter, with combined holdings worth $3.93 billion.
On December 15, Morgan Stanley analyst Benjamin Swinburne upgraded Endeavor Group Holdings, Inc. (NYSE:EDR) to ‘Overweight’ from ‘Equal Weight’, increasing the price target to $40 from $33. The analyst sees media’s “content spending surge” benefit companies such as Endeavor Group Holdings, Inc. (NYSE:EDR) which hold rights to exclusive content in entertainment and sports, especially as 70% of the company’s net operating income comes from UFC and its high-powered talent agency. As for the broader ‘media/entertainment’ sector, Swinburne sees growth in streaming, advertising and live entertainment leading to strong revenue growth in 2022.
ClearBridge Investments, an investment firm, talked about Endeavor Group Holdings, Inc. (NYSE:EDR) in its Q2 2021 investor letter. Here’s what the fund said:
“In addition to these disruptors, we added exposure in evolving opportunities through the IPO of Endeavor Group. Endeavor owns sports leagues like UFC and Pro Bull Riders which should benefit from the return of live events as well as leading sports agency IMG and its IMG Academy training franchise. Streaming companies are hungry for content and rights prices for programming owned by Endeavor are rising. Endeavor, as a representative to many of the world’s most well-known athletes, should also benefit from soaring sports salaries.”
3. XPeng Inc. (NYSE:XPEV)
ARK Investment Management’s Stake Value: $34.71 million
Percentage of ARK Investment Management’s 13F Portfolio: 0.1%
Number of Hedge Fund Holders: 25
XPeng Inc. (NYSE:XPEV) is a leading electric car-maker based in China. XPeng Inc. (NYSE:XPEV) boasts industry-leading delivery speed for its electric vehicles, and new product launches planned in 2022 will allow the firm to expand its dominant growth in EV deliveries. In December, XPeng Inc. (NYSE:XPEV) sold 16,000 electric vehicles, signaling a 181% year-on-year increase. For 2022, XPeng Inc. (NYSE:XPEV) gave unofficial guidance of 250,000 deliveries and a stretch goal of 300,000 deliveries. Given the company’s exceptional production capacity growth and supply chain strength, these estimates look credible even though they remain above analysts’ estimates.
Investors were eager on XPeng Inc. (NYSE:XPEV) stock in the third quarter of 2021, with 25 hedge funds holding stakes worth $657.2 million. This is up from 19 hedge funds with holdings worth $784.6 million in XPeng Inc. (NYSE:XPEV) at the close of Q2 2021.
On February 8, XPeng Inc. (NYSE:XPEV) was given an ‘Overweight’ rating by Barclays analyst Jiong Shao, and a price target of $33. Initiating his coverage, the analyst sees EV’s among China’s top national priorities, with a ‘rare opportunity’ for EV makers like XPeng Inc. (NYSE:XPEV) to not only command a dominant market share in China but the global market for electric vehicles.
2. Nu Holdings Ltd. (NYSE:NU)
ARK Investment Management’s Stake Value: $36.84 million
Percentage of ARK Investment Management’s 13F Portfolio: 0.11%
Number of Hedge Fund Holders: N/A
Cathie Wood added Nu Holdings Ltd. (NYSE:NU) to her portfolio over Q4 2021, with 3.92 million shares with a combined value of $36.84 million, which amounts to a 0.11% slice of her total holdings. The firm offers digital financial services in Brazil, Columbia, and Mexico, with 48.1 million customers across these markets. Nu Holdings Ltd. (NYSE:NU) went public in December 2021 through a $2.6 billion IPO. Nu Holdings Ltd. (NYSE:NU) is already disrupting traditional banks in Latin America, serving customers at considerably lower rates. It also enjoys backing from legendary investor and billionaire Warren Buffett.
On February 16, Nu Holdings Ltd. (NYSE:NU) was initiated with an ‘Underperform’ rating and a $5 price target by Bradesco BBI analyst Gustavo Schroden. The analyst sees the fin-tech company facing near-term headwinds due to Brazil’s weak economic situation, and hurdles in monetizing its client base in the long term.
1. Nextdoor Holdings, Inc. (NYSE:KIND)
ARK Investment Management’s Stake Value: $44.34 million
Percentage of ARK Investment Management’s 13F Portfolio: 0.13%
Number of Hedge Fund Holders: N/A
Nextdoor Holdings, Inc. (NYSE:KIND) was the largest newcomer to Cathie Wood’s portfolio over the fourth quarter, with 5.6 million shares valued at $44.34 million, making up a 0.13% portion of her overall holdings. Nextdoor Holdings, Inc. (NYSE:KIND) is a social network company that allows users within a local neighborhood to interact, and exchange alerts and information.
On November 23, Evercore ISI analyst Mark Mahaney initiated coverage of Nextdoor Holdings, Inc. (NYSE:KIND) with an ‘Outperform’ rating and $16 price target. The analyst called Nextdoor “a true structural winner from the COVID crisis”, and sees the company as having one of the fastest revenue growth outlooks out of all the stocks he covers. Mahaney sees Nextdoor Holdings, Inc.’s (NYSE:KIND) ‘Social-Local’ theme offering a differentiated value proposition for both users and advertisers alike.
You can also take a peek at 15 Biggest Tech Companies In The World and Larry Robbins’ Top Stock Picks.
