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15 Worst Stock Picks of Cathie Wood in 2022

In this piece, we will take a look at the 15 worst stock picks of Cathie Wood in 2022. For her top five worst stock picks, head on over to 5 Worst Stock Picks of Cathie Wood in 2022.

Cathie Wood is one of the more popular hedge fund investors when it comes to the retail crowd. As opposed to some of the older and larger hedge funds, whose investment strategies see them invest in a wide variety of firms, Ms. Wood instead targets high growth sectors such as biotechnology, electric vehicles, and space exploration, to name a few. This is an aggressive strategy that targets maximum returns but also comes with a serious risk of under performance during a turbulent economic environment as you’ll find out below.

Fueled by a global energy and commodities crisis due to the Russian invasion of Ukraine and inflation in the wake of generous stimulus packages for pandemic support, 2022 unleashed a brutal wave of inflation that made doing business much harder and made purchases even more difficult. Wary of inflation becoming ‘entrenched’ the Federal Reserve kicked into action and started raising interest rates aggressively. This complex environment wreaked havoc on high growth stocks – precisely the ones that Ms. Wood’s ARK Investment hedge fund invests in.

However, 2023 is providing a breath of fresh air for her, as her firm’s flagship ARK Innovation fund is up 40% as of Friday, February 3, 2023. Bolstered by her fund’s performance, Ms. Wood dismissed comments that the broader NASDAQ had still outperformed her fund by ten times over the past two years, and in an interview with Bloomberg, she simply stated “We are the new Nasdaq.”

Yet, despite the market bloodbath, Ark is sticking with disruptive innovation and shared the philosophy behind its investment strategies in a new report dubbed Big Ideas 2023. In this report, the investment firm shared that five innovational platforms are ‘converging’ together to scale up the value of disruptive innovation platforms, which the firm believes will rise 40% to reach $200 trillion by 2030. These platforms, according to Ark, are Public Blockchains, Artificial Intelligence, Energy Storage, and Multiomic Sequencing. These five platforms consist of 14 different technologies, which are Smart Contracts, Digital Wallets, Intelligent Devices, Next Gen Cloud, Neural Networks, Reusable Rockets, Advanced Battery Technologies, Cryptocurrencies, Autonomous Mobility, 3D Printing, Neural Networks, Adaptive Robotics, Programmable Biology, Multiomic Technologies, and Precision Therapies.

One of these platforms, artificial intelligence, has really piqued Ms. Wood’s attention, as during a recent chat with Yahoo Finance she gushed over the technology and commented that:

So, I think if you look at our Big Ideas report, we just published it two days ago. Big Ideas, it’s on Ark-Invest.com. You will see innovation, opportunities, the likes of which we have never seen before. We believe that innovation is priced in the markets, both public and private at roughly $13 trillion. So that’s roughly I’m going to say it’s 10% of the total market values out there. And we believe that $13 trillion is going to scale at a 40% annualized rate over the next eight years to $200 trillion by 2030. The driver of this powerful move is primarily artificial intelligence. It is catalyzing all kinds of changes, in all kinds of industries. And I don’t think that investors have done enough research on how profound this impact is going to be. One of the reasons we give our research away is we want to help investors. But not only investors, but we want to help, you know, parents and grandparents guide their children and grandchildren to the right side of change. We want investors to get to the right side of change. And you know, we’ve been saying for quite some time, that the right side of change is more in the innovation space – clearly! – given how much is taking place then it is in the benchmarks.

Ark Investment has eight different exchange traded funds and these cover disruptive areas from autonomous technology, robotics, and space exploration. Within these, some big stock picks are Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and NVIDIA Corporation (NASDAQ:NVDA).

Cathie Wood of ARK Investment Management

Our Methodology 

In order to pick out Ms. Wood’s worst stock picks for 2022, we first compiled a list of 200+ stocks that her eight funds had invested in as of the end of 2022. Following this, their share price drops in percentage from a 52 week high were calculated, and the bottom performers were ranked, starting from the lowest drops to the highest.

15 Worst Stock Picks of Cathie Wood in 2022

15. Unity Software Inc. (NYSE:U)

Negative Percentage Change From 52 Week High: 68.74%

Number of Hedge Fund Holders In Q3 2022: 34

Unity Software Inc. (NYSE:U) is a software platform provider that allows developers to create develop and create content for different devices such as mobile phones and televisions. The firm is based in San Francisco, California.

By the end of Q3 2022, 34 of the 920 hedge funds polled by Insider Monkey had invested in Unity Software Inc. (NYSE:U).

Catherine D. Wood’s ARK Investment Management is Unity Software Inc. (NYSE:U) ‘s largest investor with a $313 million stake that comes via 10.9 million shares.

Along with Fathom Digital Manufacturing Corporation (NYSE:FATH), Senti Biosciences, Inc. (NASDAQ:SNTI), and Invitae Corporation (NYSE:NVTA), Unity Software Inc. (NYSE:U) was one of Cathie Wood’s worst performing stocks in 2022.

14. Personalis, Inc. (NASDAQ:PSNL)

Negative Percentage Change From 52 Week High: 69.91%

Number of Hedge Fund Holders In Q3 2022: 14

Personalis, Inc. (NASDAQ:PSNL) is a diagnostics company based in Menlo Park, California. The firm provides products and services that enable the development of therapies for several kinds of cancer.

Personalis, Inc. (NASDAQ:PSNL) scored a big win in February 2022, when it announced that it had entered into an agreement with Moderna Inc (NASDAQ:MRNA) to continue using its platform for developing cancer treatment. By the end of 2022’s third quarter, 14 of the 920 hedge funds part of Insider Monkey’s survey had bought a stake in the company.

Catherine D. Wood’s ARK Investment Management is Personalis, Inc. (NASDAQ:PSNL)’s largest investor with a $10 million stake courtesy of 5.5 million shares.

13. Markforged Holding Corporation (NYSE:MKFG)

Negative Percentage Change From 52 Week High: 70.10%

Number of Hedge Fund Holders In Q3 2022: 13

Markforged Holding Corporation (NYSE:MKFG) is a 3D printer company based in Watertown, Massachusetts. The firm makes and sells 3D printers and associated software and equipment.

Markforged Holding Corporation (NYSE:MKFG) is currently under speculation for a potential takeover, as industry watchers believe that an SEC filing detailing executive severance packages is creating a buzz. 13 of the 920 hedge funds polled by Insider Monkey in Q3 2022 had invested in the firm.

12. Atai Life Sciences N.V. (NASDAQ:ATAI)

Negative Percentage Change From 52 Week High: 70.41%

Number of Hedge Fund Holders In Q3 2022: 19

Atai Life Sciences N.V. (NASDAQ:ATAI) is a German biotechnology company that is headquartered in Berlin. The firm develops treatments for behavior and mental health disorders such as opioid abuse, schizophrenia, and treatment resistant depression. Additionally, its products also target post traumatic stress disorder and brain injuries.

By the end of 2022’s third quarter, 19 out of the 920 hedge funds polled by Insider Monkey had invested in Atai Life Sciences N.V. (NASDAQ:ATAI). The firm’s stock tanked in January 2023 when it announced that a depression treatment failed to yield satisfactory results.

Atai Life Sciences N.V. (NASDAQ:ATAI)’s largest hedge fund investor is Israel Englander’s Millennium Management which owns 117,716 shares that are worth $205,000.

11. Cognyte Software Ltd. (NASDAQ:CGNT)

Negative Percentage Change From 52 Week High: 70.59%

Number of Hedge Fund Holders In Q3 2022: 15

Cognyte Software Ltd. (NASDAQ:CGNT) is a software company whose products let customers such as corporations and governments conduct investigations. The firm was set up in 2020 and is based out of Haifa, Israel.

Cognyte Software Ltd. (NASDAQ:CGNT) came under a bit of controversy in January 2023 when it was revealed that it had entered into a contract to sell spyware software to a state telecommunications firm in Myanmar. 15 of the 920 hedge funds part of Insider Monkey’s Q3 2022 survey of 920 hedge funds had bought Cognyte Software Ltd. (NASDAQ:CGNT)’s shares.

10. MoneyLion Inc. (NYSE:ML)

Negative Percentage Change From 52 Week High: 70.65%

Number of Hedge Fund Holders In Q3 2022: 16

MoneyLion Inc. (NYSE:ML) is an American financial platform provider. The firm’s products allow its customers to financial products and banking and investing solutions such as cryptocurrencies, loans, and credit servicing products. The company is based in New York, New York.

Insider Monkey took a look at 920 hedge funds for their third quarter of 2022 investments to discover that 16 had invested in MoneyLion Inc. (NYSE:ML).

9. Codexis, Inc. (NASDAQ:CDXS)

Negative Percentage Change From 52 Week High: 70.97%

Number of Hedge Fund Holders In Q3 2022: 23

Codexis, Inc. (NASDAQ:CDXS) is a biotechnology firm that is based in Redwood City, California. The firm provides a protein engineering platform used to develop biotechnology products. Alongside this, Codexis, Inc. (NASDAQ:CDXS) also sells enzymes and proteins for laboratory experiments.

Insider Monkey’s Q3 2022 hedge fund survey of 920 hedge funds revealed that 23 had held a stake in Codexis, Inc. (NASDAQ:CDXS). The inflationary wave hit the firm hard in 2022, as it shelved several internal development programs.

Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management is Codexis, Inc. (NASDAQ:CDXS)’s largest hedge fund investor with a $27 million stake that comes via 4.5 million shares.

8. Velo3D, Inc. (NYSE:VLD)

Negative Percentage Change From 52 Week High: 72.94%

Number of Hedge Fund Holders In Q3 2022: 11

Velo3D, Inc. (NYSE:VLD) is a 3D printer manufacturing company. The firm provides several different kinds of printers such as those that are capable of manufacturing parts for rockets, jet engines, and other high value engineering products. It is based in California.

Velo3D, Inc. (NYSE:VLD) is also a rare company that is associated with providing SpaceX with 3D printers for making parts of the Raptor 2 full-flow Methane-fueled staged-combustion rocket engine, perhaps the most complex engine in the world right now. 11 of the 920 hedge funds polled by Insider Monkey for 2022’s third quarter had bought the firm’s shares.

7. Berkeley Lights, Inc. (NASDAQ:BLI)

Negative Percentage Change From 52 Week High: 73.07%

Number of Hedge Fund Holders In Q3 2022: 18

Berkeley Lights, Inc. (NASDAQ:BLI) is another biotechnology company that is also headquartered in California. The firm makes and sells chips, kits, systems, and software that allows users to develop biotechnology therapy products.

Berkeley Lights, Inc. (NASDAQ:BLI) scored a big win in 2022’s fourth quarter as the investment beast BlackRock increased its stake in the firm to 6.8% of all outstanding stock. During last year’s third quarter, 18 of the 920 hedge funds polled by Insider Monkey had invested in Berkeley Lights, Inc. (NASDAQ:BLI).

Berkeley Lights, Inc. (NASDAQ:BLI)’s largest investor is Catherine D. Wood’s ARK Investment Management which owns 2.7 million shares that are worth $7.4 million.

6. Twilio Inc. (NYSE:TWLO)

Negative Percentage Change From 52 Week High: 73.24%

Number of Hedge Fund Holders In Q3 2022: 58

Twilio Inc. (NYSE:TWLO) is a cloud communications software provider based in San Francisco, California. The firm’s platform enables firms to develop systems to communicate with their customers.

Twilio Inc. (NYSE:TWLO) was on the radar of the Federal Communications Commission (FCC) in January 2023, when the regulator asked it to stop all traffic on its platform from illegal robocalls. By the end of Q3 2022, 58 of the 920 hedge funds polled by Insider Monkey had bought Twilio Inc. (NYSE:TWLO)’s shares.

Out of these, Catherine D. Wood’s ARK Investment Management is Twilio Inc. (NYSE:TWLO)’s largest investor with a $362 million stake courtesy of 7.4 million shares.

Fathom Digital Manufacturing Corporation (NYSE:FATH), Senti Biosciences, Inc. (NASDAQ:SNTI), Twilio Inc. (NYSE:TWLO), and Invitae Corporation (NYSE:NVTA) are some of Cathie Wood’s worst stock picks in 2022.

Click to continue reading and see 5 Worst Stock Picks of Cathie Wood in 2022.

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Disclosure: None. 15 Worst Stock Picks of Cathie Wood in 2022 is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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