5 Software Stocks to Sell Now According to Cathie Wood

4. Meta Platforms, Inc. (NASDAQ:FB)

Number of Hedge Fund Holders: 224  

Percentage Decrease in Stake in Q4: 100%  

Meta Platforms, Inc. (NASDAQ:FB) is a California-based tech giant. There has been a mass hedge fund exodus from the stock in recent months. At the end of the fourth quarter of 2021, 224 hedge funds in the database of Insider Monkey held stakes worth $31 billion in Meta Platforms, Inc. (NASDAQ:FB), compared to 248 in the preceding quarter worth $38 billion. 

Meta Platforms, Inc. (NASDAQ:FB) had featured in the ARK portfolio, with minor interruptions, since the fourth quarter of 2016. The fund had been shedding the stock since the fourth quarter of 2020 and sold off the holding completely during the fourth quarter of 2021. 

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:

“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”