In this article, we discuss 10 stocks under $10 in Cathie Wood’s portfolio. If you want to see some more stocks in this selection, go see Cathie Wood’s Portfolio: 5 Stocks Under $10.
Cathie Wood is the chief executive officer and chief investment officer of ARK Investment Management, a Florida-based hedge fund that she founded in 2014. The main product of ARK Invest is actively managed exchange traded funds, but the firm also invests in individual securities for its clients.
ARK Investment Management primarily invests in disruptive technology, believing it to be a futuristic concept that will pay off in the long-term. Cathie Wood adamantly remains on the disruptive technology path since she gained tremendously from her early bullish calls on Tesla, Inc. (NASDAQ:TSLA), despite several market warnings and opposition from prominent hedge fund managers at the time. She remains as bullish on the stock as ever, predicting the share price to reach $4,600 in 2026 according to ARK’s Monte Carlo analysis.
While ARK Invest posted gains of more than 150% in 2020, Cathie Wood was constantly in the Wall Street spotlight. However, her performance in 2021 declined, and ARK has lost about 30% in the first quarter of 2022 alone. In comparison, the tech-heavy NASDAQ lost 9% and the Russell Mid-Cap Growth Index fell about 12.6% during the same time frame. Despite posting heavy losses and amid widespread critique of her risk management and sharp fund drawdowns, Cathie Wood remains confident in her strategy and continues to buy tech stocks and the names that garnered heavy losses for her portfolio.
The fourth quarter portfolio of Cathie Wood’s ARK Investment Management is worth over $33 billion. In addition to holding big names like Tesla, Inc. (NASDAQ:TSLA), Coinbase Global, Inc. (NASDAQ:COIN), and Zoom Video Communications, Inc. (NASDAQ:ZM), the hedge fund holds many inexpensive stocks as well.
Cathie Wood of ARK Investment Management
Our Methodology
We used the Q4 portfolio of Cathie Wood’s ARK Investment Management to select the hedge fund’s top 10 stock picks under $10. Share prices are mentioned as of April 15.
Cathie Wood’s Portfolio: Stocks Under $10
10. Blade Air Mobility, Inc. (NASDAQ:BLDE)
Number of Hedge Fund Holders: 6
Share Price as of April 15: $9.40
Blade Air Mobility, Inc. (NASDAQ:BLDE) was founded in 2014 and is headquartered in New York. The company uses helicopters, jets, turboprops, and seaplanes to circumvent the traffic on normal flight routes in the United States. Cathie Wood’s ARK Investment Management owns approximately 8 million Blade Air Mobility, Inc. (NASDAQ:BLDE) shares as of Q4 2021, worth more than $70 million, representing 0.21% of the fund’s 13F portfolio.
On February 8, JPMorgan analyst Bill Peterson maintained an Overweight rating on Blade Air Mobility, Inc. (NASDAQ:BLDE) with a $16 price target ahead of the Q4 results. He expects the company to deliver revenue upside in the fourth quarter as compared to consensus, with contribution from latest acquisitions and MediMobility compensating for “likely lackluster” airport demand at the end of the first quarter of 2022. Blade Air Mobility, Inc. (NASDAQ:BLDE) should post upside in the next quarters, the analyst told investors.
Blade Air Mobility, Inc. (NASDAQ:BLDE) published its fourth quarter results on February 10, posting GAAP earnings per share of $0.01, beating market consensus estimates by $0.14. The $24.62 million revenue also outperformed analysts’ predictions by $7.91 million.
According to Insider Monkey’s Q4 data, 6 hedge funds were bullish on Blade Air Mobility, Inc. (NASDAQ:BLDE), with collective stakes amounting to $148.7 million, compared to 8 funds in the earlier quarter, holding stakes in Blade Air Mobility, Inc. (NASDAQ:BLDE) worth $158.8 million.
In addition to Tesla, Inc. (NASDAQ:TSLA), Coinbase Global, Inc. (NASDAQ:COIN), and Zoom Video Communications, Inc. (NASDAQ:ZM), Blade Air Mobility, Inc. (NASDAQ:BLDE) is one of the notable stocks from Cathie Wood’s portfolio.
9. Nano Dimension Ltd. (NASDAQ:NNDM)
Number of Hedge Fund Holders: 11
Share Price as of April 15: $3.06
Headquartered in Ness Ziona, Israel, Nano Dimension Ltd. (NASDAQ:NNDM) specializes in additively manufactured electronics (AME) technology that transforms analog devices into intelligent machines to deliver all-digital systems. Cathie Wood’s hedge fund held 19.8 million Nano Dimension Ltd. (NASDAQ:NNDM) shares in the fourth quarter of 2021, worth $75.5 million, representing 0.22% of the total 13F portfolio.
On March 31, Nano Dimension Ltd. (NASDAQ:NNDM) posted financial results for the December 2021 quarter. The company reported a loss per share of $0.09, missing analysts’ estimates by $0.02. Revenue for the period came in at $7.53 million, outperforming market consensus by $2.03 million.
Among the hedge funds tracked by Insider Monkey, 11 funds were bullish on Nano Dimension Ltd. (NASDAQ:NNDM) in the fourth quarter of 2021, compared to 10 funds in the earlier quarter. The total stakes held in Q4 amounted to approximately $92 million. Ken Griffin’s Citadel Investment Group owned a significant position in the company, raising its stake by 528% in the December quarter. Ken Griffin’s fund owns 1.65 million shares worth $6.2 million.
8. Personalis, Inc. (NASDAQ:PSNL)
Number of Hedge Fund Holders: 11
Share Price as of April 15: $6.90
Personalis, Inc. (NASDAQ:PSNL) is headquartered in Menlo Park, California, operating as a cancer genomics company. The company is involved in gene sequencing to develop cancer therapies and genetic research. ARK Investment Management, as of Q4 2021, held 4.8 million shares of Personalis, Inc. (NASDAQ:PSNL), worth $69.75 million, accounting for 0.21% of the total 13F holdings.
The company reported its fourth quarter results on February 24, announcing a loss per share of $0.45, beating consensus estimates by $0.05. The $20.68 million revenue for the period was in-line with analysts’ predictions, up 2.5% year-over-year. Personalis, Inc. (NASDAQ:PSNL) expects a 2022 full-year revenue of approximately $67 million versus a $66.22 million consensus.
On February 25, H.C. Wainwright analyst Swayampakula Ramakanth reiterated a Buy recommendation on Personalis, Inc. (NASDAQ:PSNL) but lowered the firm’s price target on the shares to $38 from $50 after the Q4 results.
According to the fourth quarter database of Insider Monkey, 11 hedge funds were long Personalis, Inc. (NASDAQ:PSNL), compared to 14 funds in the previous quarter. Israel Englander’s Millennium Management is a prominent stakeholder of the company, with 1.35 million shares worth $19.2 million, boosting its position in Personalis, Inc. (NASDAQ:PSNL) by 534%.
7. Quantum-Si incorporated (NASDAQ:QSI)
Number of Hedge Fund Holders: 16
Share Price as of April 15: $4.23
Quantum-Si incorporated (NASDAQ:QSI) is a Connecticut-based life sciences company that specializes in molecule detection and sequencing. The company’s single molecule detection platform is used in the semiconductor industry to allow next generation protein sequencing.
Securities filings for Q4 2021 reveal that Cathie Wood’s ARK Investment Management owns more than 13 million shares of Quantum-Si incorporated (NASDAQ:QSI), worth $102.8 million, representing 0.31% of the total 13F portfolio. Cathie Wood has owned Quantum-Si incorporated (NASDAQ:QSI) since Q2 2021 and she has consistently increased her stake in the company over time.
The company management remarked on March 28 that Quantum-Si incorporated (NASDAQ:QSI) has $471 million in funding to successfully launch its protein sequencing technology in 2022. The company believes that the human body’s response to COVID-19 and immunology have generated demand for next-generation protein sequencing, just like oncology led to the mainstream adoption of next-generation DNA sequencing.
According to Insider Monkey’s Q4 data, 16 hedge funds reported owning stakes in Quantum-Si incorporated (NASDAQ:QSI), worth over $175 million, compared to 10 funds in the prior quarter, holding stakes in Quantum-Si incorporated (NASDAQ:QSI) valued at $139.7 million.
6. Berkeley Lights, Inc. (NASDAQ:BLI)
Number of Hedge Fund Holders: 16
Share Price as of April 15: $5.94
Berkeley Lights, Inc. (NASDAQ:BLI) was incorporated in 2011 and is headquartered in Emeryville, California. The company focuses on digital cell biology, biotherapeutics, and other cell-based products. Cathie Wood, via ARK Investment Management, held more than 8 million shares of Berkeley Lights, Inc. (NASDAQ:BLI) at the end of December 2021, worth $145.5 million, representing 0.44% of the total 13F securities.
On March 16, Berkeley Lights, Inc. (NASDAQ:BLI) stock rose 15% when two of the company directors, Gregory Lucier and John Chiminski, purchased common stock worth $0.26 million and $93,000 respectively.
Cowen analyst Steven Mah maintained on March 2 an Outperform rating on Berkeley Lights, Inc. (NASDAQ:BLI) as part of his Synthetic Biology space coverage. The analyst believes the “SynBio” is a high-single digit trillion market that will grow to mid-double digit trillions by 2025.
According to the fourth quarter database of Insider Monkey, 16 hedge funds held long positions in Berkeley Lights, Inc. (NASDAQ:BLI), compared to 18 funds in the preceding quarter. The total stakes owned in the fourth quarter came in at $237.7 million. John Overdeck and David Siegel’s Two Sigma Advisors is a prominent position holder in Berkeley Lights, Inc. (NASDAQ:BLI), with 1.10 million shares worth $20 million.
Like Tesla, Inc. (NASDAQ:TSLA), Coinbase Global, Inc. (NASDAQ:COIN), and Zoom Video Communications, Inc. (NASDAQ:ZM), Berkeley Lights, Inc. (NASDAQ:BLI) is on the radar of elite investors.
Here is what Alger Small Cap Focus Fund has to say about Berkeley Lights, Inc. (NASDAQ:BLI) in their Q1 2021 investor letter:
“Berkeley Lights Inc. was among the top detractors from performance. Berkeley Lights is a leading digital cell biology company founded in 2011. The company provides a single cell manipulation platform to enable and accelerate rapid development and commercialization of biotherapeutics and other cell-based products. The Berkeley Lights platform provides an advanced environment for rapid functional characterization of single cells at scale, with advanced automation systems that analyze live cells using proprietary consumables and application and workflow software to deliver robust single cell data. Berkeley Lights’ workflows enable a deep understanding of each cell’s behavior by recording critical data such as relevant phenotypic characteristics and linking to genetic information using real -time continuous images on thousands of cells, cell by cell. The company drastically reduces the amount of time required to get results for each of these application workflows by using customer defined criteria to find the best eel I for each customer’s desired product.
We believe the underperformance of Berkeley Lights shares during the first quarter was driven more by heavy insider selling than by a change in fundamentals and we believe the base business remains strong. For example, the company recently announced a new$17 mi11ion multi-year non-exclusive collaboration agreement with a global leader in the contract development and manufacturing organization (COMO) space, which will expand the company’s total addressable market and potentially allow the company to develop new workflows that it can commercialize in the future. More broadly, Berkeley Lights has tailwinds from strong demand for cell -based products, increasing complexity of these products and a growing number of therapeutic modalities, all of which should drive demand for the company’s technology.”
Click to continue reading and see Cathie Wood’s Portfolio: 5 Stocks Under $10.
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Disclosure: None. Cathie Wood’s Portfolio: 10 Stocks Under $10 is originally published on Insider Monkey.
