In this article, we discuss 5 stocks billionaire Cliff Asness is selling in 2022. If you want to see more stocks that were recently dumped by Asness, click Billionaire Cliff Asness is Selling These 10 Stocks in 2022.
5. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 33
Plug Power Inc. (NASDAQ:PLUG) is a New York-based company that specializes in hydrogen fuel cell solutions for the mobility, material handling, and stationary power industries in North America and international markets. Billionaire Cliff Asness held 11,775 shares of Plug Power Inc. (NASDAQ:PLUG) in Q4 2021, and he sold off the stake entirely in Q1 2022.
Morgan Stanley analyst Stephen Byrd on May 17 maintained an Overweight rating and a $60 price target on Plug Power Inc. (NASDAQ:PLUG) shares after the company disclosed that it has been awarded a contract to manufacture a one gigawatt electrolyzer for hydrogen company, H2 Energy Europe, for green hydrogen production in Denmark. As per the analyst’s estimates, this order could drive revenue of $500 million upon its delivery in 2024. The analyst also added that he is optimistic about the early signs of success with large-scale projects and thinks there could be potential upside to his estimates.
According to Insider Monkey’s Q1 database, 33 hedge funds were bullish on Plug Power Inc. (NASDAQ:PLUG), up from 23 funds in the preceding quarter. D E Shaw is a significant shareholder of the company, with 5.25 million shares worth $150.2 million.
In its Q2 2020 investor letter, Massif Capital, an asset management firm, highlighted a few stocks and Plug Power Inc. (NASDAQ:PLUG) was one of them. Here is what the fund said:
“We also closed our short position in Plug Power Inc. (NASDAQ:PLUG) this quarter as the market was subsumed with enthusiasm over their recent acquisitions, resulting in an almost 80% rally in the stock over ten trading days. Our decision to exit was painful at the time as we were forced to reconcile with a collective exuberance that was (and is, in our opinion) not grounded reality. In hindsight, it was the correct decision as we avoided most of its recent vertical trajectory.”
4. American Well Corporation (NYSE:AMWL)
Number of Hedge Fund Holders: 20
American Well Corporation (NYSE:AMWL) is a Massachusetts-based telehealth software company, providing urgent care, pediatrics, therapy, end-stage renal disease and dialysis, dermatology care, behavioral health therapy, and musculoskeletal care via its application. Billionaire Cliff Asness dumped his $191,000 stake in American Well Corporation (NYSE:AMWL) in Q1 2022.
On May 16, Piper Sandler analyst Sean Wieland lowered the price target on American Well Corporation (NYSE:AMWL) to $5 from $7 and kept an Overweight rating on the stock. He trimmed his revenue growth and margin estimates after the company’s “mixed” Q1 results, but is encouraged by positive data points and commentary on Converge. The analyst is now modeling FY23 to FY25 “more conservatively” and still sees American Well Corporation (NYSE:AMWL) reaching adjusted EBITDA breakeven in the second half of FY25, in-line with the management’s goal.
According to Insider Monkey’s first quarter database, 20 hedge funds were bullish on American Well Corporation (NYSE:AMWL), compared to 23 funds in the preceding quarter. Richard Mashaal’s Rima Senvest Management is the biggest stakeholder of the company, with a position worth $32.2 million.
Here is what Baron Funds has to say about American Well Corporation (NYSE:AMWL) in its Q2 2021 investor letter:
“We exited modest positions in American Well Corporation during the quarter. We think that this sale exemplifies the merits of maintaining small initial position sizes. We were initially excited by the long-term opportunities represented by the business and the valuations at which we were able to deploy capital. However, our ongoing and iterative due diligence efforts surfaced concerns regarding the sustainability of competitive advantages over our investment horizon. Additionally, we observed changes to incentive structures that potentially foreshadowed a future misalignment with shareholders. We were easily able to exit these modest positions and reallocate that capital to investments in which we have greater conviction that we believe offer more attractive risk-adjusted returns.”
3. Canadian Pacific Railway Limited (NYSE:CP)
Number of Hedge Fund Holders: 41
Canadian Pacific Railway Limited (NYSE:CP) operates a transcontinental freight railway in Canada and the United States, transporting bulk commodities. Cliff Asness’ AQR Capital Management held 37,991 shares of Canadian Pacific Railway Limited (NYSE:CP) in Q4 2021, worth $2.71 million. The hedge fund sold off its position in the company in Q1 2022.
Citi analyst Christian Wetherbee lowered the price target on Canadian Pacific Railway Limited (NYSE:CP) to $81 from $84 and reiterated a Buy rating on the stock. The analyst downgraded three stocks in US rails and lowered estimates across the board for the group, citing short-term risk in a decelerating freight and economic environment. He is taking a more cautious approach due to “freight warning signs” and “persistent” service issues, the analyst told investors. He believes these can result in a “delayed operational reaction to a true downturn”.
According to Insider Monkey’s Q1 data, 41 hedge funds were bullish on Canadian Pacific Railway Limited (NYSE:CP), down from 55 funds in the preceding quarter. Chris Hohn’s TCI Fund Management is the largest shareholder of the company, with 55.8 million shares worth $4.60 billion.
Here is what ClearBridge International Growth EAFE Strategy has to say about Canadian Pacific Railway Limited (NYSE:CP) in its Q3 2021 investor letter:
“The other major headwind to relative performance in the quarter was Canadian Pacific Railway Limited (NYSE:CP). The stock has been a strong performer for the Strategy but negative sentiment around its bidding war for U.S. rail operator Kansas City Southern has weighed on the stock since late May. As a result, the cyclical uptick we expected from the company has been masked by the takeover. Indeed, we have been frustrated by the muted performance among Canadian Pacific Railway Limited (NYSE:CP) and other recently added positions in our structural bucket of growth companies with more cyclical business models or that are undergoing a restructuring that should lead to a step change improvement in earnings. As more regions reopen from COVID-19 and spending rebounds, we expect better performance from our structural names, including Airbus and hospitality and food service provider Compass.”
2. Twist Bioscience Corporation (NASDAQ:TWST)
Number of Hedge Fund Holders: 16
Twist Bioscience Corporation (NASDAQ:TWST) was incorporated in 2013 and is headquartered in South San Francisco, California. It is a synthetic biology company that manufactures and sells synthetic DNA-based products. Cliff Asness’ fund held 3,483 shares of Twist Bioscience Corporation (NASDAQ:TWST) in Q4 2021, worth $270,000. AQR Capital Management dumped its stake in the company in Q1 2022.
On May 9, Barclays analyst Luke Sergott slashed the price target on Twist Bioscience Corporation (NASDAQ:TWST) to $40 from $60 and maintained an Overweight rating on the shares. The company reported an in-line quarter versus Barclays’ projections of a modest beat, the analyst told investors in a research note.
According to Insider Monkey’s Q1 database, 16 hedge funds held long positions in Twist Bioscience Corporation (NASDAQ:TWST), with collective stakes worth $459.6 million, compared to the same number of funds in the earlier quarter, holding stakes in the company valued at $564.7 million. Cathie Wood’s ARK Investment Management is the leading shareholder of the company, with 5.2 million shares worth about $260 million.
Here is what Baron Funds has to say about Twist Bioscience Corporation (NASDAQ:TWST) in its Q2 2021 investor letter:
“We initiated a position in Twist Bioscience Corporation, a provider of synthetic DNA. The company’s proprietary semiconductor-based platform has driven its position as the low-cost provider of DNA for a variety of high-growth applications. These include the attractive areas of synthetic biology, liquid biopsy, and antibody discovery. Of note, the antibody business has the potential to become a source of high-margin royalty streams in the future.
As further optionality, we believe Twist has a shot at disrupting the entire digital data storage industry with DNA-based storage.”
1. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 36
Palantir Technologies Inc. (NYSE:PLTR) develops and deploys software platforms in the United States to assist government agencies in counterterrorism investigations and operations. Cliff Asness disposed of his Palantir Technologies Inc. (NYSE:PLTR) position in Q1 2022, which previously consisted of 31,075 shares worth $566,000.
On May 10, Citi analyst Tyler Radke lowered the price target on Palantir Technologies Inc. (NYSE:PLTR) to $7 from $10 and reiterated a Sell rating on the shares. The company’s underlying growth continued to drop in Q1, with the barest quarterly revenue beat to date and its guidance is also below the Street consensus, the analyst told investors in a research note. The company displayed minimal commercial deal value growth and slowdowns in total/commercial revenue, noted the analyst.
Among the hedge funds tracked by Insider Monkey, 36 funds were long Palantir Technologies Inc. (NYSE:PLTR) at the end of Q1 2022, compared to 33 funds in the prior quarter. Jim Simons’ Renaissance Technologies held the biggest stake in the company, with 12.5 million shares worth $171.8 million.
Here is what Tao Value has to say about Palantir Technologies Inc. (NYSE:PLTR) in its Q4 2021 investor letter:
“We have no new position this quarter and have made below changes to our portfolio. We also sold Palantir (PLTR) as I identified it subject to high retail bubble risk (using above method) and are not part of our core “Mindful Compounder” holdings.”
You can also take a look at Bill Gates Portfolio: 10 Stocks to Buy and Hold for Over 5 Years and 10 Biotech Stocks to Buy According to Billionaire DE Shaw.
