Cathie Wood is Buying These 10 Stocks

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In this article, we discuss Cathie Wood is Buying These 10 Stocks. If you want to skip our detailed analysis of these stocks, go directly to Cathie Wood is Buying These 5 Stocks.

Star stock picker Catherine D. Wood is the CEO and founder of the $42 billion disruptive technology hedge fund ARK Investment Management. Wood is known for investing in genomics, self-driving cars, fintech, and artificial intelligence. In 2020, Wood’s flagship fund, ARK Innovation ETF (ARKK) returned over 152%.

Cathie Wood recently rebalanced ARK’s portfolio by selling approximately $1.3 billion worth of Tesla, Inc. (NASDAQ:TSLA) shares in the previous three months, as of early November. Tesla, Inc. (NASDAQ:TSLA) remains the largest holding of ARK Investment Management as of the end of the September quarter.

Meanwhile, some of the stocks Cathie Wood is buying in the third quarter include UiPath Inc. (NYSE:PATH), Invitae Corporation (NYSE:NVTA), Palantir Technologies Inc. (NYSE:PLTR), and DraftKings Inc. (NASDAQ:DKNG).

Cryptocurrency exchange platform Coinbase Global, Inc. (NASDAQ:COIN) is ARK’s third-largest position, representing 3.83% of the fund as of the end of Q3 2021. Cathie Wood increased her stake in the crypto stock by 25% in the period between June and September. Coinbase Global, Inc. (NASDAQ:COIN) shares increased 49% in the last six months.

Our Methodology

These stocks were chosen from ARK Investment Management’s investment portfolio at the end of the third quarter of 2021. We selected stocks in which the fund increased its stake between June and September of this year.

The hedge fund sentiment around each stock was calculated using the data of 873 hedge funds tracked by Insider Monkey.

Cathie Wood Portfolio: Top 10 Stock Picks

Cathie Wood of ARK Investment Management

With this context in mind, here is our list of Cathie Wood’s top 10 stock picks.

Cathie Wood is Buying These 10 Stocks

10. Signify Health, Inc. (NYSE:SGFY)

ARK Investment Management’s Stake Value: $320,480,000

ARK Investment Management’s 13F Portfolio: 0.76%

Number of Hedge Fund Holders: 13

Signify Health, Inc. (NYSE:SGFY) offers a healthcare platform to the government, employers, and healthcare providers in the US. Latest filings show that the hedge fund managed by Cathie Wood owned over 17.9 million shares of Signify Health, Inc. (NYSE:SGFY) at the end of the third quarter of 2021 worth $320 million, representing 0.76% of the portfolio. ARK Investment Management has increased its stake in the stock by 347% between June and September.

The company recently reported its Q3 2021 where revenue jumped 29% from Q3 2020 to $199.2 million. Deutsche Bank analyst George Hill kept a Buy rating on Signify Health, Inc. (NYSE:SGFY) after the company posted strong Q3 results. The analyst set a price target of $31 for the stock on November 15.

At the end of the second quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $167 million in Signify Health, Inc. (NYSE:SGFY), compared to 28 in the previous quarter worth $189 million.

In addition to UiPath Inc. (NYSE:PATH), Invitae Corporation (NYSE:NVTA), Palantir Technologies Inc. (NYSE:PLTR), and DraftKings Inc. (NASDAQ:DKNG), Signify Health, Inc. (NYSE:SGFY) is one of the stocks Cathie Wood is buying in the third quarter.

9. TuSimple Holdings Inc. (NASDAQ:TSP)

ARK Investment Management’s Stake Value: $382,967,000

ARK Investment Management’s 13F Portfolio: 0.91%

Number of Hedge Fund Holders: 14

TuSimple Holdings Inc. (NASDAQ:TSP) is a California-based self-driving truck company. In the third quarter of 2021, ARK Investment Management increased its stake in the autonomous company by 60%. The hedge fund owned over 10.3 million shares of TuSimple Holdings Inc. (NASDAQ:TSP) worth $382 million at the end of the September quarter.

The autonomous tech company went public in April and the stock has returned over 15% in the past six months. The company posted revenue of $1.8 million in the third quarter, topping estimates of $1.65 million. Year to date, the company received 6,875 truck orders.

RBC Capital kept an Outperform rating on TuSimple Holdings Inc. (NASDAQ:TSP) with a price target of $55 per share on November 4.

Of the 873 elite funds tracked by Insider Monkey, 14 were bullish on TuSimple Holdings Inc. (NASDAQ:TSP) at the end of June.

8. Quantum-Si incorporated (NASDAQ:QSI)

ARK Investment Management’s Stake Value: $105,904,000

ARK Investment Management’s 13F Portfolio: 0.25%

Number of Hedge Fund Holders: 19

Quantum-Si incorporated (NASDAQ:QSI) is a biotech company that manufactures protein sequencing platforms. According to Q3 filings, Cathie Wood upped her stake in the biotech stock by 214%. ARK Investment Management owned 12.6 million shares of Quantum-Si incorporated (NASDAQ:QSI) at the end of the September quarter.

Kyle Mikson of Canaccord Genuity initiated a Buy rating on Quantum-Si incorporated (NASDAQ:QSI) on October 20. Mikson believes that Quantum-Si’s low-cost genome sequencing platform will appeal to the global biopharmaceutical market. The analyst set a $13 price target for the biotech stock.

As of the end of the second quarter, 19 hedge funds tracked by Insider Monkey reported owning stakes in Quantum-Si incorporated (NASDAQ:QSI). The total worth of these stakes is $230 million.

7. DraftKings Inc. (NASDAQ:DKNG)

ARK Investment Management’s Stake Value: $844,489,000

ARK Investment Management’s 13F Portfolio: 2.02%

Number of Hedge Fund Holders: 26

DraftKings Inc. (NASDAQ:DKNG) is an online sports entertainment and gaming company based in Boston. The sports betting company announced its acquisition of Golden Nugget Online Gaming in August. The company agreed to buy the Texas-based online gaming firm for $1.56 billion. DraftKings Inc.’s ecosystem added 5 million customers as a result of the acquisition. The company had 1.3 million monthly unique paying customers in the third quarter.

ARK Investment Management increased its stake in DraftKings Inc. (NASDAQ:DKNG) by 29%, bringing the total number of shares to 17.5 million at the end of the third quarter, valued at $844 million.

At the end of June, 26 hedge funds out of the 873 tracked by Insider Monkey had stakes in DraftKings Inc. (NASDAQ:DKNG), compared to 43 in the previous quarter.

6. Palantir Technologies Inc. (NYSE:PLTR)

ARK Investment Management’s Stake Value: $895,304,000

ARK Investment Management’s 13F Portfolio: 2.14%

Number of Hedge Fund Holders: 26

Palantir Technologies Inc. (NYSE:PLTR) is one of the stocks Cathie Wood bought in the third quarter of 2021, loading up over 37 million shares. The stock represents 2.14% of the ARK Investment Management fund. The intelligence software company recently announced a 36% revenue increase in Q3 2021. The company’s revenue was $392 million, exceeding the revenue estimate of $385 million.

The Colorado-based company provides intelligence platforms to government agencies in the US. Some of its biggest clients are the Department of Health and Human Services and the Department of Defense. Palantir Technologies Inc. (NYSE:PLTR) added 34 net new customers in the third quarter. The stock gained 13% in the past twelve months.

Of the 873 elite funds tracked by Insider Monkey, 26 were long Palantir Technologies Inc. (NYSE:PLTR) at the end of June, compared to 32 in the first quarter of 2021.

Palantir Technologies Inc. (NYSE:PLTR) is among the stocks Cathie Wood purchased in the third quarter just like UiPath Inc. (NYSE:PATH), Invitae Corporation (NYSE:NVTA), and DraftKings Inc. (NASDAQ:DKNG).

In its Q2 2021 investor letter, Guardian Fund mentioned Palantir Technologies Inc. (NYSE: PLTR) and discussed its stance on the firm. Here is what the fund said:

“The success of the private sector to innovate in order to help people through the lockdowns and to produce vaccines at record speed at scale has been impressive. The fact that almost every public institution was struggling to be effective no matter how hard some of the people worked, shows the fundamental need of the public sector to become data-driven and invest in data infrastructure.

Government institutions have to partner with enterprises such as Palantir to become digital native. The public sector will always struggle to attract the most talented engineers as compensations cannot be justified with tax money and therefore this must be a partnership with specialized private enterprises. This is a great opportunity for Palantir especially as it has already shown to be capable of working with demanding and complex public institutions entrusting it to work on the most critical and sensitive matters.

The news section of Palantir’s website gives insight in where new business is coming from. The main opportunity is in enterprise software and the faster onboarding time and increased self-service of clients is a positive sign. We believe Palantir is becoming one of the more important global software companies.

In addition, Palantir has quietly become a significant investor, investing well over USD 200 million in eight companies. Thereby, it is following the lead of companies like Tencent, Alphabet, and Shopify of establishing valuable investment portfolios.”

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Disclosure. None. Cathie Wood is Buying These 10 Stocks is originally published on Insider Monkey.