Cathie Wood’s Top 5 Small-Cap Stock Picks

2. 2U, Inc. (NASDAQ:TWOU)

ARK Investment Management’s Stake Value: $390,953,000

Percentage of ARK Investment Management’s 13F Portfolio: 0.72%

Market Cap: $2.524 billion

Number of Hedge Fund Holders: 25

2U, Inc. (NASDAQ:TWOU) is the second stock on our list of Cathie Wood’s top 15 small-cap stock picks. The company provides educational technology to not-for-profit colleges and universities for their online degree courses. 2U, Inc. (NASDAQ:TWOU) provides a cloud-based SaaS platform, coursework and curriculum, capital, and infrastructure support to its affiliated educational institutes. 

Wood’s ARK Investment Management owns 9.38 million shares in 2U, Inc. (NASDAQ:TWOU), valued at $390.95 million, and making up 0.72% of Wood’s 13F portfolio. 

At the end of June, 25 hedge funds in Insider Monkey’s database were long 2U, Inc. (NASDAQ:TWOU), up from 23 in the previous quarter, with ARK Investment Management being the largest stakeholder. 

The second quarter earnings per share was reported as -$0.09 on July 29, beating estimates by $0.06. The revenue for 2U, Inc. (NASDAQ:TWOU) was $237.21 million, surpassing expected revenue by $3.6 million.