Cathie Wood’s Latest Portfolio: 10 New Stock Picks

In this article, we discuss the 10 new stocks that Cathie Wood added to her portfolio in Q4 2021. You can skip our comprehensive analysis of ARK Investment Management’s investment strategy, and go directly to Cathie Wood’s Latest Portfolio: 5 New Stock Picks.

Cathie Wood is the CEO, CIO, and founder of ARK Investment Management. Starting her career as an assistant economist at Capital Group in 1977, Cathie Wood has gone on to become one of Wall Street’s most popular investors, with her returns, investments, and insight into disruptive tech often making headlines in financial markets around the world. In 2020, Bloomberg named Cathie Wood as the best stock picker, as her ARK Innovation ETF posted a 170% return in a year that saw the stock market turn upside down amid the Covid pandemic.

ARK Investment Management invests primarily in disruptive tech with a long-term horizon. These are companies with the potential to disrupt billion-dollar markets and establish themselves as market leaders as the world economy evolves towards automation. Cathie believes that as the world continues to adopt artificial intelligence (AI) and rely more on smart computers, this will create ample room for newbie, innovative tech companies to become the next Amazon or Google stock.

Cathie Wood’s ARK Investment Management has been on a downward trajectory over the last several months, but Wood remains adamant her investment philosophy will hold true, despite all the criticism. She believes that innovative technologies such as robotics, energy storage, artificial intelligence, blockchain technology and DNA sequencing will scale and converge in the coming years, transforming the world order as we know it. In December, Wood assured investors that innovative tech stocks are not in a bubble, rather they are in ‘deep-value territory’. She added:

With a five-year investment time horizon, our forecasts for these platforms suggest that our strategies today could deliver a 30-40% compound annual rate of return during the next five years

Some of the top stocks in Cathie Wood’s portfolio include Tesla, Inc. (NASDAQ:TSLA), Twitter, Inc. (NYSE:TWTR), and Coinbase Global, Inc. (NASDAQ:COIN). But with all this hype around Cathie Wood’s vision for disruptive tech heading into 2022, let’s take a look at the top 10 new stocks Cathie Wood added to her portfolio in the fourth quarter of 2021.

Our Methodology

We selected the top 10 stocks Cathie Wood added to her ARK Investment Management portfolio in Q4 2021, using her 13F filings for the quarter. Hedge fund sentiment around each stock was derived using Insider Monkey’s database of 867 elite hedge funds.

Let’s now start looking at Cathie Wood’s Latest Portfolio additions.

Cathie Wood’s Latest Portfolio: 10 New Stock Picks

10. Axon Enterprise, Inc. (NASDAQ:AXON)

ARK Investment Management’s Stake Value: $198,000

Percentage of ARK Investment Management’s 13F Portfolio: 0.001%

Number of Hedge Fund Holders: 32

Starting off the list of 10 new stocks Cathie Wood added to her portfolio in Q4 2021 is Axon Enterprise, Inc. (NASDAQ:AXON), a manufacturer of electrical weapon products that operates through its segments: TASER Weapons and Software and Sensors. The company’s products are routinely procured by the military, law enforcement agencies, and private consumers for personal protection. According to regulatory data for the fourth quarter, Cathie Wood added Axon Enterprise, Inc. (NASDAQ:AXON) to her portfolio, holding approximately 1,300 shares in the company worth $198,000.

Hedge funds were seen bullish on Axon Enterprise, Inc. (NASDAQ:AXON) as of the third quarter of 2021, with 32 hedge funds holding stakes in the company worth $529.8 million. This is up from 24 hedge funds in the second quarter with combined holdings of $513.6 million.

In December, JMP Securities analyst Erik Suppiger resumed coverage of Axon Enterprise, Inc. (NASDAQ:AXON) with an ‘Outperform’ rating and a price target of $195. The analyst noted that the company’s flagship TASER technology is increasingly being adopted as an alternative to guns, and its dominance in body-worn police cameras and cloud-based services also enhances its leadership position in the public safety technology market.

In February, Axon Enterprise, Inc. (NASDAQ:AXON) announced the opening of its first R&D (research and development) office in London, in a bid to expand its global footprint.

Conestoga Capital Advisors, an independent investment management firm, mentioned Axon Enterprise, Inc. (NASDAQ:AXON) in its Q4 2020 investor letter, stating:

“AAXN reported third quarter results that were materially ahead of expectations as the company benefitted from continued adoption of body cameras and software tools within police agencies, a surge in Federal bookings, which is a new focus for the company, and continued momentum within the international market. AAXN also introduced 2021 guidance that was ahead of sell-side estimates.”

Along with Tesla, Inc. (NASDAQ:TSLA), Twitter, Inc. (NYSE:TWTR), and Coinbase Global, Inc. (NASDAQ:COIN), Axon Enterprise, Inc. (NASDAQ:AXON) is an exciting stock in the portfolio of Cathie Wood’s ARK Investment Management.

9. GitLab Inc. (NASDAQ:GTLB)

ARK Investment Management’s Stake Value: $199,000

Percentage of ARK Investment Management’s 13F Portfolio: 0.001%

Number of Hedge Fund Holders: N/A

Up next on the list of new stocks Cathie Wood added to her portfolio in the fourth quarter is GitLab Inc. (NASDAQ:GTLB), a software firm with over 30 million registered users around the world, providing software solutions to companies such as Ticketmaster, Jaguar Land Rover, and Nasdaq, among others. ARK Investment Management reported owning roughly 2,300 shares of GitLab Inc. (NASDAQ:GTLB) at the end of the fourth quarter, worth $199,000.

On February 4, RBC Capital analyst Matthew Hedberg upgraded GitLab Inc. (NASDAQ:GTLB) to ‘Outperform’ from ‘Sector Perform’ with an unchanged price target of $90. Hedberg sees shares of GitLab Inc. (NASDAQ:GTLB) priced reasonably after a recent pullback in price, and remains bullish on the company commanding a significant share of the DevSecOps (Development, Security, Operations) market which is worth an estimated $40 billion, as its platform allows the quick development and deployment of secure applications. In January, JPMorgan analyst Sterling Auty upgraded GitLab Inc. (NASDAQ:GTLB) to an ‘Overweight’ rating and termed it a ‘Growth All-Star’.

GitLab Inc. (NASDAQ:GTLB) posted an EPS of -$0.34 for the third quarter, beating consensus estimates by $0.14. Quarterly revenue of $66.80 million was also above analysts’ forecasts by $7.63 million.

8. Nurix Therapeutics, Inc. (NASDAQ:NRIX)

ARK Investment Management’s Stake Value: $1.27 million

Percentage of ARK Investment Management’s 13F Portfolio: 0.001%

Number of Hedge Fund Holders: 18

Then there’s Nurix Therapeutics, Inc. (NASDAQ:NRIX), in which Cathie Wood initiated a $1.27 million position comprising of roughly 44,000 shares at the close of the fourth quarter. The firm was recorded in the portfolio of 18 hedge funds in the third quarter, with combined holdings of $313.3 million. This is up from 17 hedge funds with stakes worth $270.9 million in Nurix Therapeutics, Inc. (NASDAQ:NRIX) at the close of the second quarter of 2021.

Nurix Therapeutics, Inc. (NASDAQ:NRIX) is a biopharmaceutical firm that develops small-molecule therapies to treat cancer and immune disorders. The firm recorded earnings per share of -$0.85 in Q4 2021, falling below estimates by $0.15. Quarterly revenue’s figure of $7.40 million was also below analysts’ forecasts by $5.80 million.

On January 28, Baird analyst Joel Beatty maintained an ‘Outperform’ rating on Nurix Therapeutics, Inc. (NASDAQ:NRIX) shares, revising the firm’s price target to $41 from $49. The analyst noted that he views Nurix Therapeutics, Inc. (NASDAQ:NRIX) as a leading protein modulation company, with four planned clinical readouts for mid-to-end 2022. The analyst explained the price target decrease as attributed to the recent broader pullback in biotech stocks.

7. Mynaric AG (NASDAQ:MYNA)

ARK Investment Management’s Stake Value: $5.00 million

Percentage of ARK Investment Management’s 13F Portfolio: 0.01%

Number of Hedge Fund Holders: N/A

Mynaric AG (NASDAQ:MYNA) is a firm specializing in laser communication technology, offering products used for aerospace applications. Its main products include CONDOR, an optical inter-satellite link flight terminal for satellite-to-satellite communications in space; and HAWK, an airborne flight terminal for air-to-air and air-to-ground links of airborne vehicles. Mynaric AG (NASDAQ:MYNA) is headquartered in Germany. Cathie Wood added the firm to her portfolio in the fourth quarter, with 393,000 shares worth $5 million.

On December 7, Greg Konrad of research firm Jefferies initiated coverage of Mynaric AG (NASDAQ:MYNA) with a ‘Buy’ rating and a price target of $23, noting that he expects the firm to grow at a compound annual growth rate (CAGR) of 100% over the next four years with high operating leverage. The analyst is bullish on laser communication terminals as a growing market supported by the increase in large satellite constellations.

Founded in 2009, Mynaric AG (NASDAQ:MYNA) went public on the Frankfurt Stock Exchange in 2017 and debuted on the NASDAQ stock exchange in November 2021.

6. Hyperfine, Inc. (NASDAQ:HYPR)

ARK Investment Management’s Stake Value: $7.25 million

Percentage of ARK Investment Management’s 13F Portfolio: 0.02%

Number of Hedge Fund Holders: N/A

Cathie Wood also added Connecticut-based Hyperfine, Inc. (NASDAQ:HYPR) to her portfolio over the fourth quarter, with 1 million shares worth $7.25 million, representing 0.02% of her overall portfolio. The firm develops medical devices for diagnostics, and technology for non-invasive brain monitoring using a mix of hardware, software and applications powered by artificial intelligence.

Hyperfine, Inc. (NASDAQ:HYPR) produced the world’s first portable MRI system called Swoop, which has been approved for use by the FDA in 2020. This new technology brings down the time process for an MRI scan by 94%, taking only 90 minutes for its workflow as compared to the 25.8 hour duration required for a conventional MRI machine scan.

With its products, Hyperfine, Inc. (NASDAQ:HYPR) has identified the opportunity of an estimated $70 billion disruption across the key markets of Imaging, Sensing, and Guided Intervention.

Along with Tesla, Inc. (NASDAQ:TSLA), Twitter, Inc. (NYSE:TWTR), and Coinbase Global, Inc. (NASDAQ:COIN), Hyperfine, Inc. (NASDAQ:HYPR) is a top stock in the portfolio of Cathie Wood.

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