In this article, we discuss the latest stock picks of Cathie Wood under $10. If you want to skip our detailed analysis of these stocks, go directly to Cathie Wood’s 5 Latest Stock Picks Under $10.
The portfolio value of ARK Investment Management, the New York-based hedge fund led by trailblazing investor Cathie Wood, has decreased by about $12 billion in the third quarter of 2021, according to the latest 13F filings. The growth-heavy portfolio, featuring many healthcare and technology stocks, has taken a beating in the past few weeks as inflation concerns spark an exodus towards value plays. Wood has doubled down on her bets on growth stocks during this period, dismissing predictions of an economic slowdown.
In a recent tweet posted in response to billionaire Elon Musk admitting “strong inflationary pressure”, Wood said that COVID-related supply chain bottlenecks and oil supply constraints were leading to inflation, reminding her followers that deflationary forces associated with artificial intelligence, electric vehicles, robotics, genomic sequencing, and blockchain technology would likely act in opposition to these pressures. Wood was one of the most successful investors of 2020 and her market observations have garnered a lot of interest among analysts.
Wood is also very famous among retail investors since her investing strategy aligns closely with the disruptive ideas of these young enthusiasts. Citing the spending habits of these investors, a great deal of whom are strong believers in the “sharing economy”, and evidence of a mass exodus from expensive cities to cheaper ones across the United States, Wood has outlined that commodity prices will fall in 2022 and innovation will keep inflation at bay over the long-term. Wood had previously announced that she will be shifting her fund to Florida from New York.
As ARK Investment Management invests in firms like Tesla, Inc. (NASDAQ:TSLA), Coinbase Global, Inc. (NASDAQ:COIN), and Teladoc Health, Inc. (NYSE:TDOC), among others discussed in detail below, Wood had predicted that Bitcoin, the most popular cryptocurrency, will rise to $500,000 in value within the next five years. The price of Bitcoin is presently around $60,000. The investor cited institutional buying and wider international acceptance as some of the reasons behind her bullish view on the new technology.
Wood garnered a lot of fame in the finance world last year when her flagship ARK Innovation ETF returned over 152% to investors. It is quite incredible that Wood has managed to build a portfolio worth tens of billions by focusing on investments in biotech, traditionally considered a highly risk investment domain due to the nature of the industry where the fortunes of even the biggest firms are usually tied to one or two products and where research and development eats up a major chunk of the budget.
The latest 13F filings of ARK Investment Management reveal that the company has increased stakes and made new purchases in several growth equities that are trading at under $10 per share over the past few months. To accommodate for this, Wood has been selling shares in bigger pharma firms like Bristol-Myers Squibb and AbbVie as well as EV maker Tesla. Overall, the fund has bought stakes in 50 new firms compared to the filings for the second quarter and sold out of 36 stocks between June and September.
Our Methodology
These were picked from the investment portfolio of ARK Investment Management at the end of the third quarter of 2021.
The hedge fund sentiment around each stock was calculated using the data of 873 hedge funds tracked by Insider Monkey.
Cathie Wood of ARK Investment Management
Cathie Wood’s Latest Stock Picks Under $10
10. Zymergen Inc. (NASDAQ:ZY)
Number of Hedge Fund Holders: 15
Share Price as of November 18: $9.67
At the end of the third quarter of 2021, ARK Investment Management owned 1 million shares in Zymergen Inc. (NASDAQ:ZY) worth $43 million, representing 0.08% of the portfolio. The firm designs and engineers microbes for industrial applications.
In earnings results for the third quarter, posted on November 3, Zymergen Inc. (NASDAQ:ZY) reported a revenue of $4 million, up 28% compared to the revenue over the same period last year and beating estimates by $0.6 million.
At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $241 million in Zymergen Inc. (NASDAQ:ZY).
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Anchorage Advisors is a leading shareholder in Zymergen Inc. (NASDAQ:ZY) with 1.1 million shares worth more than $15 million.
Just like Tesla, Inc. (NASDAQ:TSLA), Coinbase Global, Inc. (NASDAQ:COIN), and Teladoc Health, Inc. (NYSE:TDOC), Zymergen Inc. (NASDAQ:ZY) is one of the stocks on the radar of elite investors.
In its Q3 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Zymergen Inc. (NASDAQ:ZY) was one of them. Here is what the fund said:
“Zymergen Inc. is a company dedicated to biofacturing, or harnessing bacteria to manufacture materials. Zymergen was a detractor following an unexpected update announcing both a major delay in the launch of lead product Hyaline and the removal of CEO Josh Hoffman, who was replaced by company chairman and former Illumina CEO Jay Flatley. We exited our position given material impacts to the business.”
9. Dynamics Special Purpose Corp. (NASDAQ:DYNS)
Number of Hedge Fund Holders: N/A
Share Price as of November 18: $9.96
Dynamics Special Purpose Corp. (NASDAQ:DYNS) is a special purpose acquisition company based in California.
ARK Investment Management owned 2 million shares in Dynamics Special Purpose Corp. (NASDAQ:DYNS) at the end of September 2021 worth $20 million, representing 0.03% of the portfolio.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm Woodline Partners Karl is a leading shareholder in Dynamics Special Purpose Corp. (NASDAQ:DYNS) with 2 million shares worth more than $19 million.
8. Quantum-Si Incorporated (NASDAQ:QSI)
Number of Hedge Fund Holders: 19
Share Price as of November 18: $7.98
Securities filings show that ARK Investment Management owned 4 million shares in Quantum-Si Incorporated (NASDAQ:QSI) at the end of the third quarter of 2021 worth $49 million, representing 0.09% of the portfolio. The company owns and runs a next-generation protein sequencing and genomics platform.
Canaccord analyst Kyle Mikson recently initiated coverage of Quantum-Si Incorporated (NASDAQ:QSI) stock with a Buy rating and a price target of $13, noting the share price did not fully reflect the growth potential of the firm.
At the end of the second quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $230 million in Quantum-Si Incorporated (NASDAQ:QSI).
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Deerfield Management is a leading shareholder in Quantum-Si Incorporated (NASDAQ:QSI) with 1.4 million shares worth more than $11 million.
7. Joby Aviation, Inc. (NYSE:JOBY)
Number of Hedge Fund Holders: N/A
Share Price as of November 18: $8.91
Joby Aviation, Inc. (NYSE:JOBY) operates as an electric mobility company. On September 23, investment advisory Morgan Stanley had initiated coverage of the stock with an Overweight rating and a price target of $16, underlining the firm was the first to move to address the urban air mobility market and could quadruple in value within the next few years.
According to the latest data, ARK Investment Management owned 1.1 million shares in Joby Aviation, Inc. (NYSE:JOBY) at the end of September 2021 worth $11.8 million, representing less than 0.02% of the portfolio of the fund.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in Joby Aviation, Inc. (NYSE:JOBY) with 270,000 shares worth more than $2.7 million.
6. Ceragon Networks Ltd. (NASDAQ:CRNT)
Number of Hedge Fund Holders: 9
Share Price as of November 18: $3.04
Regulatory filings show that ARK Investment Management owned 1.5 million shares in Ceragon Networks Ltd. (NASDAQ:CRNT) at the end of the third quarter of 2021 worth over $5.7 million, representing 0.01% of the portfolio. The company provides wireless backhaul solutions.
Ceragon Networks Ltd. (NASDAQ:CRNT) recently posted earnings for the third quarter, reporting earnings per share of $0.02, beating estimates by $0.01. The revenue over the period was $76 million, up over 7% year-on-year.
At the end of the second quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $18 million in Ceragon Networks Ltd. (NASDAQ:CRNT), up from 8 in the previous quarter worth $25 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Royce & Associates is a leading shareholder in Ceragon Networks Ltd. (NASDAQ:CRNT) with 1.7 million shares worth more than $6.2 million.
Along with Tesla, Inc. (NASDAQ:TSLA), Coinbase Global, Inc. (NASDAQ:COIN), and Teladoc Health, Inc. (NYSE:TDOC), Ceragon Networks Ltd. (NASDAQ:CRNT) is one of the stocks that hedge funds are buying.
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Disclosure. None. Cathie Wood’s Latest Stock Picks Under $10 is originally published on Insider Monkey.
