In this article, we discuss the 10 stocks Cathie Wood is doubling down on. If you want to skip our detailed analysis of these stocks, go directly to Cathie Wood is Doubling Down on These 5 Stocks.
Cathie Wood, the chief of New York-based ARK Investment Management, is a trail-blazing investor on Wall Street, who continues to gain attention in investor circles amid her eccentric stock-picking strategies. Wood, whose flagship ARK Innovation ETF returned more than 152% last year, manages more than $53.7 billion in assets with holdings concentrated in the technology, consumer goods, and healthcare sectors.
On Thursday, Wood spoke on Tech Check by news platform CNBC and defended her growth-focused portfolio that has been the subject of short-selling attempts in recent weeks. Amid a broader drawdown in growth stocks on the back of valuation concerns and uncertainty regarding crypto regulation – ARK Innovation ETF was up 9% in the second quarter but still down 7% year-to-date – Wood dismissed the notion that there was a technology bubble dominating the stock market, stressing that the market could not be further away from a bubble.
Wood, who champions an investing strategy she likes to call “disruptive innovation”, is the largest institutional holder of crypto through her fund and has doubled down on tech-related bets, according to latest filings. Some of the top holdings in the ARK Investment Management portfolio at the end of the second quarter of 2021 were Twitter, Inc. (NYSE: TWTR), Square, Inc. (NYSE: SQ), JD.com, Inc. (NASDAQ: JD), Tesla, Inc. (NASDAQ: TSLA), and Facebook, Inc. (NASDAQ: FB), among others discussed in detail below.
It remains to be seen how Wood deals with these short-selling attempts moving forward, though it is fair to say that her disruptive innovation strategy has ruffled more than a few feathers in the finance world. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Cathie Wood of ARK Investment Management
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With this context in mind, here is…