5 Worst Stock Picks of Cathie Wood

4. Peloton Interactive, Inc. (NASDAQ:PTON)

Number of Hedge Fund Holders: 62  

Decline in Share Price in 2021: 80%

Peloton Interactive, Inc. (NASDAQ:PTON) provides interactive fitness products. There has been little change in ARK’s position on the company in recent months despite a sharp drop in the share price. At the end of September, the fund owned 1.7 million shares of Peloton Interactive, Inc. (NASDAQ:PTON) worth $149 million, representing 0.36% of the portfolio. ARK first bought a stake in the firm in late 2020 and has added to it significantly since. 

Peloton Interactive, Inc. (NASDAQ:PTON) has won the backing of major hedge funds as it captures the fitness market. Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Viking Global is a leading shareholder in Peloton Interactive, Inc. (NASDAQ:PTON) with 29 million shares worth more than $1 billion. 

In its Q2 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Peloton Interactive, Inc. (NASDAQ:PTON) was one of them. Here is what the fund said:

“Peloton Interactive operates a connected fitness platform offering live and on-demand classes allowing users to exercise at home. The firm’s shares were pressured in the quarter after Peloton announced a voluntary recall for both its legacy treadmill (Peloton Tread+) and its newly-launched base model treadmill (Peloton Tread). The issue surrounding the latter is somewhat troubling, as it appears it may be the result of an engineering flaw. This new treadmill offering was expected to be a key growth driver in the second half of 2021, and this development reduces our confidence in Peloton’s product pipeline. Therefore, we sold the stock.”