In this article, we discuss Cathie Wood’s top 10 buys in July. If you want to see more stocks that Cathie Wood bought this month, click Cathie Wood’s Top 5 Buys in July.
In the beginning of July, Cathie Wood of ARK Investment Management admitted that while her predictions about inflation were wrong, the US seems to be heading towards a deflationary environment. The macro backdrop is further deteriorated by supply chain constraints and geopolitical instability. The consumer sentiment is also at an all-time low. Amid the market selloff, her flagship ARK Innovation ETF has fallen over 52% year to date as of July 27, since her favorite ‘disruptive innovation’ names have been heavily battered and are among the biggest losers in the stock market.
Cathie Wood remains adamant that in a five year investment horizon, her flagship funds will return revenue and profit growth. She reiterated that her investments do not lean towards profitless tech, unlike the market assumption. She said that although shares of Zoom Video Communications, Inc. (NASDAQ:ZM), Teladoc Health, Inc. (NYSE:TDOC), and Tesla, Inc. (NASDAQ:TSLA) have reached their average pre-pandemic levels, their revenues are up six-, four-, and three-fold, respectively. She also pointed towards the crypto market bottoming, indicating that it might create buying opportunities in coins and fintech companies.
Cathie Wood is known as an aggressive tech bull, who is often berated by the market experts for her continued growth acquisitions despite massive losses. Clients seem to trust her judgment, as $1.5 billion was invested in her flagship ARK fund in the first half of 2022. Some of the top buys of Cathie Wood in July included Roku, Inc. (NASDAQ:ROKU), Shopify Inc. (NYSE:SHOP), and Intuit Inc. (NASDAQ:INTU).
Cathie Wood of ARK Investment Management
Our Methodology
We picked the most important BUY transactions initiated by Cathie Wood in the month of July. For this article we used Cathie’s Ark, a website which monitors the latest stock market trades of Cathie Wood’s ARK ETFs.
Cathie Wood’s Top Buys in July
10. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Number of Hedge Fund Holders: 20
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) was incorporated in 2013 and is headquartered in Salt Lake City, Utah. It is a clinical-stage biotechnology company that aims to revolutionize drug discovery by combining biology, chemistry, automation, data science, and engineering. On July 21, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) reported that the European Commission has authorized an orphan drug designation to its inhibitor REC-4881 for the treatment of familial adenomatous polyposis (FAP), a disorder that can lead to cancerous growth on the colon if not treated in time.
Cathie Wood’s ARK Genomic Revolution ETF on July 26 bought 30,335 shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX). Overall, in July, ARK Genomic Revolution ETF purchased more than 645,000 shares of the company.
Among the hedge funds tracked by Insider Monkey, 20 funds were bullish on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) at the end of Q1 2022, up from 14 funds in the prior quarter. Benjamin A. Smith’s Laurion Capital Management is the biggest stakeholder of the company, with 4.5 million shares worth $32.8 million.
Like Roku, Inc. (NASDAQ:ROKU), Shopify Inc. (NYSE:SHOP), and Intuit Inc. (NASDAQ:INTU), Cathie Wood is bullish on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX).
Baron Discovery Fund mentioned Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) in its Q2 2021 investor letter. Here is what the fund said:
“Recursion Pharmaceuticals, Inc. is a biotechnology company engaged in technology-enabled drug discovery. The company uses automated wet-lab infrastructure (actual biologic experimentation) with cell perturbations (multiple experiments done on the duplicate cells), and image capture to generate data at large scale. It also operates its own supercomputer (the “BioHive”) to drive “in-silico” (virtual, software-enabled) inferences based on its data and wet-lab experiments. This combined approach has generated a strong pipeline of programs spanning early discovery to clinical trials, including a collaboration deal with Bayer. The company’s use of artificial intelligence and machine learning lowers the cost of drug discovery and speeds up time to market, and we believe this paradigm is in the early innings of disrupting the entire biopharmaceutical industry. Since Recursion’s program pipeline is still at a relatively early stage, we have started with a small investment.”
9. 10x Genomics, Inc. (NASDAQ:TXG)
Number of Hedge Fund Holders: 22
10x Genomics, Inc. (NASDAQ:TXG) is a California-based life science technology company that makes and sells instruments, consumables, and software for analyzing biological systems. The company distributes its products in North America, Europe, the Middle East, Africa, China, and the Asia Pacific. 10x Genomics, Inc. (NASDAQ:TXG) expects Q2 2022 revenue to be approximately $114.5 million, below the Street consensus of $127.67 million, a 1% decrease on a year over year basis.
Cathie Wood’s ARK Genomic Revolution ETF purchased 25,156 shares of 10x Genomics, Inc. (NASDAQ:TXG) on July 26. ARK Innovation ETF also bought 235,807 shares of the company on July 15. Cathie Wood added about 396,000 shares of the company in total to her funds in July.
On July 25, Canaccord analyst Kyle Mikson initiated coverage of 10x Genomics, Inc. (NASDAQ:TXG) with a Buy rating and a $55 price target. As per the analyst, 10x Genomics, Inc. (NASDAQ:TXG) has historically shown “impressive execution” in its single cell analysis business and he thinks the company will continue to drive robust growth. While noting that recession may impact 10x Genomics, Inc. (NASDAQ:TXG)’s customer base, he believes shares are “attractive at current levels” given they offer roughly 57% upside potential to his price target, the analyst added.
According to Insider Monkey’s data, 22 hedge funds were bullish on 10x Genomics, Inc. (NASDAQ:TXG) at the end of March 2022, with collective stakes worth $541.3 million. Joel Ramin’s 12 West Capital Management is a prominent shareholder of the company, with 2.5 million shares worth $191.5 million.
Here is what ClearBridge All Cap Growth Strategy has to say about 10x Genomics, Inc. (NASDAQ:TXG) in its Q4 2021 investor letter:
“We also established a position in 10x Genomics (TXG). TXG is the dominant player in single-cell analysis and enjoys a duopoly in spatial profiling, two emerging areas of scientific research. Though the company is not yet profitable, we are attracted to the business’s strong gross margin profile and a high degree of visibility as consumables account for 85% of revenue. We also continue to see opportunities for investment in other disruptive areas of health care with large addressable markets, like diabetes.
8. Trimble Inc. (NASDAQ:TRMB)
Number of Hedge Fund Holders: 28
Trimble Inc. (NASDAQ:TRMB) is a California-based company that offers technology solutions which allow professionals to optimize and transform their work processes worldwide. The company operates through Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation segments. Bernstein analyst Chad Dillard observed in mid-May that Trimble Inc. (NASDAQ:TRMB) might consider discarding its agriculture business and gain $3 billion in value. JPMorgan analyst Tami Zakaria on July 15 reiterated a Neutral rating on Trimble Inc. (NASDAQ:TRMB) and lowered the price target on the stock to $65 from $70. The analyst slashed fiscal 2023 growth estimates across her coverage.
On July 22, Cathie Wood’s ARK Space Exploration & Innovation ETF purchased 8,998 shares of Trimble Inc. (NASDAQ:TRMB). ARK Autonomous Technology & Robotics ETF also bought 32,860 shares of the company on the same day. Overall, Cathie Wood purchased approximately 118,465 shares of Trimble Inc. (NASDAQ:TRMB) in July.
According to Insider Monkey’s data, 28 hedge funds were bullish on Trimble Inc. (NASDAQ:TRMB) at the end of March 2022, compared to 32 funds in the preceding quarter. Ian Simm’s Impax Asset Management is the leading position holder in the company, with 9.4 million shares worth $680.7 million.
7. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 30
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a Massachusetts-based company that develops a platform for cell programming. The company serves specialty chemicals, agriculture, food, consumer products, and pharmaceuticals markets. On July 25, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) announced its plan to acquire Zymergen Inc. (NASDAQ:ZY) in an all-stock transaction, valuing the biotech firm at about $300 million market capitalization.
On July 26, ARK Genomic Revolution ETF purchased 567,281 shares of Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), and ARK Innovation ETF acquired 2.19 million shares of the company on the same day. Overall, in July, Cathie Wood added more than 10 million shares of Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) to her portfolio.
Among the hedge funds tracked by Insider Monkey, 30 funds reported owning stakes in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) at the end of March 2022, with collective stakes worth $990.3 million, compared to the same number of funds in the prior quarter, holding stakes in the company valued at $4.2 billion.
6. Exact Sciences Corporation (NASDAQ:EXAS)
Number of Hedge Fund Holders: 32
Exact Sciences Corporation (NASDAQ:EXAS) was incorporated in 1995 and is headquartered in Madison, Wisconsin. The company specializes in cancer screening and diagnostic test products. Evercore ISI analyst Vijay Kumar on July 5 reiterated an Outperform rating on Exact Sciences Corporation (NASDAQ:EXAS) but lowered the price target on the shares to $60 from $100. The analyst also added Exact Sciences Corporation (NASDAQ:EXAS) to the firm’s “Tactical Outperform” list ahead of earnings season for the Life Science Tools and MedTech groups.
Cathie Wood’s ARK Genomic Revolution ETF added 75,780 shares of Exact Sciences Corporation (NASDAQ:EXAS) to its portfolio on July 26. Similarly, ARK Innovation ETF bought 20,216 shares of the company on July 14. In July, Cathie Wood acquired a total of about 733,000 shares of Exact Sciences Corporation (NASDAQ:EXAS).
Among the hedge funds tracked by Insider Monkey, 32 funds were bullish on Exact Sciences Corporation (NASDAQ:EXAS) at the end of Q1 2022, down from 34 funds in the earlier quarter. Ricky Sandler’s Eminence Capital held a significant stake in the company in Q1 2022, comprising 2.24 million shares worth $157.14 million.
In addition to Roku, Inc. (NASDAQ:ROKU), Shopify Inc. (NYSE:SHOP), and Intuit Inc. (NASDAQ:INTU), elite hedge funds are piling into Exact Sciences Corporation (NASDAQ:EXAS).
Here is what RiverPark Large Growth Fund has to say about Exact Sciences Corporation (NASDAQ:EXAS) in its Q4 2021 investor letter:
“Exact Sciences: EXAS 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 has tripled its market opportunity from $20 billion to $60 billion.”
Click to continue reading and see Cathie Wood’s Top 5 Buys in July.
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Disclosure: None. Cathie Wood’s Top 10 Buys in July is originally published on Insider Monkey.
