In this article, we will take a look at the top 10 tech and automation stocks in Cathie Wood’s portfolio. You can skip our detailed analysis of Cathie Wood’s history, investment philosophy, and hedge fund performance and go directly to the Top 5 Tech and Automation Stocks in Cathie Wood’s Portfolio.
Cathie Wood is the founder and current CEO and CIO of Ark Investment Management. The 66-year-old hedge fund investor started her career at the Capital Group as an assistant economist in 1977. In 2001, she joined AllianceBernstein as CIO and managed over $5 billion. In 2014, she founded Ark Investment Management, which has grown to $41.64 billion as of the third quarter of 2021.
Cathie Wood has a special interest in technology and automation stocks. She focuses on stocks providing disruptive innovation through technology.
In the year 2020 when the whole world felt the effects of the pandemic, ARK Innovation ETF posted spectacular returns. Bloomberg named Cathie Wood as the best stock picker of 2020. However, the hedge fund’s performance has been suffering over the last several months. Cathie Wood argues that the stocks are in “deep value territory“, and she will continue to bet on her strategies on stocks with disruptive innovation.
Some of the notable stocks in Cathie Wood’s Q3 portfolio include Robinhood Markets, Inc. (NASDAQ:HOOD), Coinbase Global, Inc. (NASDAQ:COIN) and Tesla, Inc. (NASDAQ:TSLA).
Cathie Wood of ARK Investment Management
Our Methodology
This list is compiled by picking the top companies which are working on automation and digitalization from the Q3 13F portfolio of Cathie Wood.
Automation Stocks in Cathie Wood’s Portfolio
10. PTC Inc. (NASDAQ:PTC)
Ark Investment’s Stake Value: $15.18 million
Percent of 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 37
PTC Inc. (NYSE:PTC) is a US-based company working in the software industry. The company provides automation and digital transformation solutions to its commercial and industrial consumers across the globe. ThingWorx is a software platform by PTC Inc. (NYSE:PTC) that allows industries to digitally transform their business to future needs. Creo is another engineering software platform widely used for 3D designing and testing products.
Cathie Wood owned 126,717 shares, worth $15.18 million, in PTC Inc. (NYSE:PTC) in the third quarter of 2021. This accounted for 0.03% of her 13F portfolio. Just like PTC Inc. (NYSE:PTC), Robinhood Markets, Inc. (NASDAQ:HOOD), Coinbase Global, Inc. (NASDAQ:COIN), and Tesla, Inc. (NASDAQ:TSLA) are some of the top picks of Cathie Wood.
On December 15, 2021, Mizuho lowered its price target on PTC Inc. (NYSE:PTC) to $140 from $165 and continued its “Neutral” rating on the company stocks. According to the Insider Monkey’s database tracking 867 hedge funds in the third quarter of 2021, 37 hedge funds have stakes in PTC Inc. (NYSE:PTC), valued at $1.82 billion.
9. Autodesk, Inc. (NASDAQ:ADSK)
Ark Investment’s Stake Value: $17.34 million
Percent of 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 55
With 60,801 shares valued at $17.34 million, Autodesk, Inc. (NASDAQ:ADSK) accounts for 0.04% of the Q3 portfolio of Ark Investment. Autodesk, Inc. (NASDAQ:ADSK) is another US-based software company specializing in engineering design software and services.
AutoCAD 3D is one of the most famous software of the company that helps engineers and designers build mockups, design, perform analysis and surveys. Autodesk, Inc. (NASDAQ:ADSK) aims to provide automation in the designing process through its software and services. According to Insider Monkey’s database, is in the portfolio of 55 hedge funds at the end of the third quarter of 2021, valued at $2.36 billion.
In the third quarter filings, Autodesk, Inc. (NASDAQ:ADSK) reported an EPS of $1.33, beating the market estimates by $0.07. For the same quarter, Autodesk, Inc. (NASDAQ:ADSK) reported revenue of $1.13 billion, beating the market estimates by $6.48 million.
On November 29, 2021, Deutsche Bank continued a “Buy” rating on the stock and lowered its price target to $330 from $370. Deutsche Bank quoted the Q3 results as “mixed” and remained pessimistic about the future due to labor constraints and supply chain issues.
Here is what Polen Capital has to say about Autodesk, Inc. in its Q3 2021 investor letter:
“Shares of Autodesk have lagged recently due to expectations of short-term headwinds to free cash flow as the company transitions its billing structure to annual payments from multi-year up-front subscription payments. We view this as a transient issue and believe Autodesk’s attractive long-term growth profile remains in place.”
8. Teledyne Technologies Incorporated (NYSE:TDY)
Ark Investment’s Stake Value: $36.1 million
Percent of 13F Portfolio: 0.08%
Number of Hedge Fund Holders: 38
Teledyne Technologies Incorporated (NYSE:TDY) specializes in scientific and technical instruments. The company provides digital imagery, instrumentation, and aerospace electronics to industrial consumers in the US, Canada, the UK, and Europe. The company develops instruments essential in automating the production lines of industries.
Founded in 1960, Teledyne Technologies Incorporated (NYSE:TDY) has attracted investments from 38 hedge funds, valued at $1.703 billion, as tracked by Insider Monkey at the end of the third quarter of 2021.
Ark Investment Management held 84,037 shares in Teledyne Technologies Incorporated (NYSE:TDY) in the third quarter of 2021, valued at $36.117 million.
Teledyne Technologies Incorporated (NYSE:TDY) reported an EPS of $4.34 in the third quarter of 2021, beating the market consensus by $0.65. The company reported revenue of $1.31 billion for the third quarter, beating the market estimates by $16.48 million.
Here is what Artisan Small Cap Fund has to say about Teledyne Technologies Incorporated in its Q1 2021 investor letter:
“Teledyne Technologies is a supplier of ultra-sensitive components and sensors to various end markets. We initiated our campaign in 2012 as the company was divesting its defense sector-related business to transition to a more asset-light business exposed to several compelling secular trends. Over the course of our campaign, the company repositioned its business into higher-growth and higher-margin areas such as instrumentation, digital imaging and defense electronics. In Q1, Teledyne announced its intention to acquire FLIR Systems, the largest provider of thermal imaging systems for military and industrial applications. We expect the combined entity to far exceed our small-cap market cap mandate, and we ended our successful campaign.”
7. Teradyne, Inc. (NYSE:TER)
Ark Investment’s Stake Value: $61.34 million
Percent of 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 42
Teradyne, Inc. (NYSE:TER) develops automatic testing equipment for the semiconductor and wireless industry. With 561,829 shares in the third quarter, valued at $61.335 million, Teradyne, Inc. (NYSE:TER) accounts for 0.14% of the 13F portfolio of Cathie Wood.
42 hedge funds have stakes in Teradyne, Inc. (NYSE:TER), valued at $1.37 billion, as of the third quarter end of 2021, according to the database of Insider Monkey.
On December 15, 2021, Deutsche Bank raised its price target on Teradyne, Inc. (NYSE:TER) to $170 from $150 and kept a “Buy” rating.
In addition to Teradyne, Robinhood Markets, Inc. (NASDAQ:HOOD), Coinbase Global, Inc. (NASDAQ:COIN) and Tesla, Inc. (NASDAQ:TSLA) are some of the famous stocks in Cathie Wood’s portfolio.
6. 3D Systems Corporation (NYSE:DDD)
Ark Investment’s Stake Value: $110.62 million
Percent of 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 18
Apart from Robinhood Markets, Inc. (NASDAQ:HOOD), Coinbase Global, Inc. (NASDAQ:COIN), and Tesla, Inc. (NASDAQ:TSLA), Ark Investment Management has significant investments in the US-based 3D Systems Corporation (NYSE:DDD) which provides 3D printing hardware and digital manufacturing solutions to industries all across the globe.
In the September quarter of 2021, 3D Systems Corporation (NYSE:DDD) posted an EPS of $0.08, beating the market consensus by $0.03. Revenue for the third quarter totaled $156 million, beating the market estimates by $11.64 million.
As of the end of the third quarter of 2021, Ark Investment Management held 4.012 million shares of the company, worth $110.62 million, making it 0.26% of the 13F portfolio.
According to the database of Insider Monkey tracking 867 hedge funds in Q3 2021, 18 hedge funds were bullish on 3D Systems Corporation (NYSE:DDD), having stakes worth $284.7 million. On November 10, 2021, B. Riley lowered its price target on the stock to $24 from $26 and continued its “Neutral” rating.
Click to continue and see the Top 5 Tech and Automation Stocks in Cathie Wood’s Portfolio.
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Disclosure. None. Top 10 Tech and Automation Stocks in Cathie Wood’s Portfolio is originally published on Insider Monkey.
