In this article, we discuss the 5 stocks that Cathie Wood doubled her stakes in 2022. If you want to read about some more stocks that Wood is doubling down on, go directly to Cathie Wood Doubled Her Stakes in These 10 Stocks in 2022.
5. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 61
Percentage Increase in Stake During Q1: 202%
Roblox Corporation (NYSE:RBLX) owns and runs an online entertainment platform. The hedge fund of Cathie Wood entered the second quarter of 2022 with a $281 million stake in the company comprising over 6 million shares. The company has featured in the ARK portfolio consistently since the first quarter of 2021. ARK has increased its stake in the online entertainment firm by 87%, 33%, 56%, and 201% in the past four quarters. The holding represents 1.17% of the ARK portfolio.
On May 10, Wedbush analyst Nick McKay initiated coverage of Roblox Corporation (NYSE:RBLX) stock with a Neutral rating and a price target of $28. Morgan Stanley and Stifel have also recently lowered their targets on the stock.
At the end of the fourth quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $4 billion in Roblox Corporation (NYSE:RBLX), up from 50 in the previous quarter worth $3.5 billion.
In its Q4 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Roblox Corporation (NYSE:RBLX) was one of them. Here is what the fund said:
“Roblox Corporation (NYSE:RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On business side, Roblox Corporation (NYSE:RBLX) rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in virtual world. Apple in its iOS 14.5 rolled out an impactful change for digital advertising landscape by requiring all apps to ask users to “opt in”.”
4. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 108
Percentage Increase in Stake During Q1: 302%
Sea Limited (NYSE:SE) is a diversified technology company. In late March, the company announced that Shopee, the ecommerce unit of the firm, was shutting down operations in India. The move came after India banned the sale of Free Fire, a popular Sea product, resulting in losses worth billions to the company. The firm cited “global market uncertainties” as one of the main reasons behind the pullback from India. Shopee has also recently shut down operations in France.
On May 4, HSBC analyst Piyush Choudhary kept a Buy rating on Sea Limited (NYSE:SE) stock and lowered the price target to $145 from $150, backing the firm to beat market estimates on earnings for the first quarter of 2022.
At the end of the fourth quarter of 2021, 108 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Sea Limited (NYSE:SE), compared to 117 in the previous quarter worth $14 billion.
In its Q1 2022 investor letter, Farrer Wealth Advisors, an asset management firm, highlighted a few stocks and Sea Limited (NYSE:SE) was one of them. Here is what the fund said:
“Sea Limited (NYSE:SE) had been selling off since its peak in early November of ~$363/share. This was driven by both a general sell off in tech, especially non-profitable tech, and a general belief that its gaming arm (Garena) was experiencing a slowdown due to its flagship game Free Fire. Free Fire has experienced a slowdown for three reasons: it is a victim of its own success, and by the end of Q321, nearly 10% of the world’s population already played the game, and thus reaching new users was difficult; A return to normal with people traveling/going out more and spending less time playing games; and the Indian market imposed a ban on the game due to anti-Chinese sentiment (Tencent is a large shareholder in Sea Limited (NYSE:SE)). We believed that these issues, while worth considering, were a bit overblown, and some of the data we saw from 3rd party sources showed that though Free Fire usage was dipping, it wasn’t too drastic. Thus, we marginally added to the position throughout the quarter. This was a mistake. During Sea’s earnings report in early March, the company guidance for Garena (down nearly 35% yoy) showed that the slowdown was far worse than predicted. Secondly, Shopee (Sea’s ecommerce arm) has pulled out of certain markets (in Europe and India), which long-term is probably the right strategy, but short-term hampers the optionality of the business. After considering this information and the guidance from earnings, we decided to significantly trim the position. In our opinion, management does have a bit of egg on its face from an overly aggressive expansion or as one investor called it, “bull market hubris.” We think management’s moves were mostly logical, it’s just that their failures came during an unforgiving market. While we believe that Sea’s future is still bright (especially with regards to their e-commerce and financial services), it will take a few quarters of strong earnings for them to regain their momentum, and for now the capital can be better spent elsewhere.”
3. Burning Rock Biotech Limited (NASDAQ:BNR)
Number of Hedge Fund Holders: 11
Percentage Increase in Stake During Q1: 315%
Burning Rock Biotech Limited (NASDAQ:BNR) is a China-based biotech firm. The company posted earnings for the fourth quarter of 2021 in late March, reporting a revenue of more than $23 million, up over 14% compared to the revenue over the same period last year. Yusheng Han, the CEO of the company, said during the earnings call that the company had become a “market leader” in the therapy selection business and had laid a “good foundation” for the firm moving forward in the pharma industry.
At the end of the first quarter of 2022, ARK Investment Management owned over 3.5 million shares of Burning Rock Biotech Limited (NASDAQ:BNR) worth $32.6 million, representing 0.13% of the portfolio.
Among the hedge funds being tracked by Insider Monkey, New York-based firm OrbiMed Advisors is a leading shareholder in Burning Rock Biotech Limited (NASDAQ:BNR), with 1.4 million shares worth more than $13 million.
2. Nurix Therapeutics, Inc. (NASDAQ:NRIX)
Number of Hedge Fund Holders: 25
Percentage Increase in Stake During Q1: 792%
Nurix Therapeutics, Inc. (NASDAQ:NRIX) is a biopharma firm based in California. ARK first purchased a stake in the firm during the fourth quarter of 2021, buying close to 44,000 shares at an average price of $30.32 per share. As the share price of the stock fell to around $17, the fund increased its stake in the firm and now owns over 391,000 shares in the company worth $5.4 million, representing 0.02% of the portfolio.
On April 14, investment advisory HC Wainwright maintained a Buy rating on Nurix Therapeutics, Inc. (NASDAQ:NRIX) stock and lowered the price target to $60 from $62. Analyst Robert Burns issued the ratings update.
At the end of the fourth quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $287 million in Nurix Therapeutics, Inc. (NASDAQ:NRIX), compared to 18 in the preceding quarter worth $313 million.
1. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
Percentage Increase in Stake During Q1: 12,971%
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cloud-based cybersecurity services. At the end of the first quarter of 2022, the fund of Cathie Wood owned 124,043 shares of the company worth $28.1 million, representing 0.11% of the portfolio. The firm has been in the ARK portofolio, with minor exceptions, since the second quarter of 2020. Like other growth stocks, the share price of the company has tanked by close to one-fourth over the past twelve months on the back of inflation concerns.
On April 18, Jefferies analyst Joseph Gallo initiated coverage of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock with a Buy rating and a price target of $275, noting the dominance of the firm in the cybersecurity space.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in CrowdStrike Holdings, Inc. (NASDAQ:CRWD), with 7.5 million shares worth more than $1.5 billion.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was one of them. Here is what the fund said:
“CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cloud-delivered, next generation security solutions via its Falcon platform consisting of end-point protection, advanced persistent threat, security information, event management, and cloud workload protection. Shares rose 11% in the first quarter, on the back of impressive quarterly results with net new annual recurring revenue (ARR) accelerating for the second straight quarter to 52% year-over-year and the company’s favorable unit economics driving 30% free cash flow margins. Moreover, key new disclosures highlight how non-end-point products are seeing momentum with cloud product-generated ARR surpassing $100 million, representing 8% of net new ARR in the quarter. With more workloads migrating to or starting in the cloud, we believe CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is well positioned to compound at high growth rates for years given its unique product platform and attractive go-to-market business model.”
You can also take a peek at 10 High-Yield Dividend Stocks with Payout Ratio Less than 55% and 10 Stocks to Buy Today According to British Billionaire David Harding.
