Cathie Wood Dumped These 3 Stocks in July

1. Coinbase Global, Inc. (NASDAQ:COIN)

Number of Hedge Fund Holders: 46

Coinbase Global, Inc. (NASDAQ:COIN) is an American fintech company that serves the global crypto economy. On July 26, ARK Innovation ETF discarded 1.13 million Coinbase Global, Inc. (NASDAQ:COIN) shares. This is the first time Cathie Wood dumped Coinbase Global, Inc. (NASDAQ:COIN) stock in 2022. Overall, ARK sold 1.42 million shares of the company in July and the stock slid about 21% on the announcement. 

On July 12, JMP Securities analyst Devin Ryan lowered the price target on Coinbase Global, Inc. (NASDAQ:COIN) to $205 from $250 but reaffirmed an Outperform rating on the shares as part of a broader research note on Alternative Asset Managers. After another difficult quarter and with “likely some more pain ahead”, the expectations for performance have been reduced further, but the industry is moving close to factoring in a recessionary environment, the analyst told investors. 

Among the hedge funds tracked by Insider Monkey, 46 funds were long Coinbase Global, Inc. (NASDAQ:COIN) at the end of Q1 2022, down from 57 funds in the prior quarter. Jim Simons’ Renaissance Technologies is one of the leading position holders in the company, with 1.05 million shares worth about $200 million. 

Here is what Rowan Street has to say about Coinbase Global, Inc. (NASDAQ:COIN) in its Q2 2022 investor letter:

“The mentality of a passionate Founder/CEO drives a completely different thought process and decision-making that makes all the difference. This is a quote by Brian Armstrong, Founder and CEO of Coinbase (NASDAQ:COIN):

‘I can speak with some authority and say we are not going to do that because this is not why I started the company – I don’t have to give any other justification. Rather than the professional CEO that comes in that is accountable to Wall Street and quarterly earnings may start thinking about the company differently. One of the most scarce things in companies today is risk tolerance. For example, take Tesla vs. Waymo. Tesla launched self-driving cars while Google didn’t. The reason is the founder-CEO (Elon Musk) said that I care enough about the mission that we are ready and we are gonna go for it. Whether a professional CEO is thinking about his/her career trajectory, the founder CEO doesn’t care about the next job and only cares about the mission.’”

You can also take a look at Cathie Wood’s 10 Favorite Stock Picks For The Rest of 2022 and The 10 Stocks That Jim Cramer Is Talking About.

Follow Insider Monkey on Twitter