Cathie Wood’s 5 Favorite Stock Picks for the Rest of 2022

2. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 76

General Motors Company (NYSE:GM) was founded in 1908 and is headquartered in Detroit, Michigan. The company manufactures and sells automobiles in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China. Securities filings for Q2 2022 disclose that Cathie Wood added General Motors Company (NYSE:GM) to her portfolio by purchasing 151,065 shares worth $5.8 million. 

Deutsche Bank analyst Emmanuel Rosner on July 18 downgraded General Motors Company (NYSE:GM) to Hold from Buy with a price target of $36, down from $57. The analyst contended that automakers will experience favorable conditions in the second quarter but face increasing earnings risk. 

Among the hedge funds tracked by Insider Monkey, 76 funds were long General Motors Company (NYSE:GM) at the conclusion of Q1 2022, down from 90 funds in the earlier quarter. Warren Buffett’s Berkshire Hathaway is the leading position holder in the company, with 62 million shares worth $2.7 billion. 

Here is what Oakmark Global Fund has to say about General Motors Company (NYSE:GM) in its Q1 2022 investor letter:

“General Motors (NYSE:GM) was a detractor during the quarter, due to increased macro uncertainty, higher fuel prices, and concerns over rising input costs, which pressured the company in particular and the auto industry as a whole. While we are closely monitoring the potential impact of these dynamics, industry demand remains robust, driven by strong consumer balance sheets and pent-up demand after multiple years of constrained production. We also remain confident in GM’s ability to navigate a complex operating environment, which the company has consistently demonstrated over the past few years. Finally, the long-term picture remains bright. We believe GM is significantly undervalued, is well-positioned for the long-term transition to electric vehicles and has numerous needle-moving ancillary business opportunities (most notably Cruise, which is an industry leader in autonomous vehicle technology) that are under-appreciated.”