In this article, we discuss the 5 small-cap stock picks of Cathie Wood’s 2022 portfolio. If you want to read our analysis of Wood’s hedge fund performance, go directly to Cathie Wood’s Top 15 Small-Cap Stock Picks.
5. Pacific Biosciences of California, Inc. (NASDAQ:PACB)
Number of Hedge Fund Holders: 22
Cathie Wood’s Ark Investment Management’s Holdings: $157,896,000
Percentage of Cathie Wood’s Ark Investment Management’s Portfolio: 0.93%
Market Capitalization as of July 26: $978.3 million
Pacific Biosciences of California, Inc. (NASDAQ:PACB) is a Menlo Park, California-based developer and manufacturer of gene sequencing systems.
Pacific Biosciences of California, Inc. (NASDAQ:PACB) is set to report its quarterly results on August 3. Analysts anticipate the company to report revenue and loss per share of $35.70 million and 34 cents, respectively. In the last eight quarters, Pacific Biosciences of California, Inc. (NASDAQ:PACB) has outperformed revenue estimates in seven quarters and earnings estimates on three occasions. Pacific Biosciences of California, Inc. (NASDAQ:PACB) has a 20% revenue exposure in the Chinese market.
Of the 912 hedge funds in Insider Monkey’s database, 22 funds held a stake in Pacific Biosciences of California, Inc. (NASDAQ:PACB) as of Q1 2022.
4. Stratasys Ltd. (NASDAQ:SSYS)
Number of Hedge Fund Holders: 21
Cathie Wood’s Ark Investment Management’s Holdings: $162,980,000
Percentage of Cathie Wood’s Ark Investment Management’s Portfolio: 0.96%
Market Capitalization as of July 26: $1.32 billion
Stratasys Ltd. (NASDAQ:SSYS) is an Israel-based provider of 3D printing solutions.
On May 17, Stratasys Ltd. (NASDAQ:SSYS) was given a Buy rating by Troy Jensen at Lake Street after the company reported better-than-expected Q1 results and FY22 guidance.
On July 18, Nano Dimension Ltd. (NASDAQ:NNDM) announced that it had acquired a 12.1% stake in Stratasys Ltd. (NASDAQ:SSYS). Following this development, Stratasys Ltd. (NASDAQ:SSYS) adopted a temporary poison pill to avoid a takeover. The plan would help prevent any entity from taking more than a 15% stake in Stratasys Ltd. (NASDAQ:SSYS).
At the end of Q1 2022, 21 elite funds reported owning a stake in Stratasys Ltd. (NASDAQ:SSYS).
3. Twist Bioscience Corporation (NASDAQ:TWST)
Number of Hedge Fund Holders: 16
Cathie Wood’s Ark Investment Management’s Holdings: $213,353,000
Percentage of Cathie Wood’s Ark Investment Management’s Portfolio: 1.26%
Market Capitalization as of July 26: $2.37 billion
Twist Bioscience Corporation (NASDAQ:TWST) is a San Francisco, California-based biotech company that produces synthetic DNA tools and related products.
On July 13, Luke Sergott at Barclays increased the price target on Twist Bioscience Corporation (NASDAQ:TWST) from $40 to $45 and maintained an Overweight rating on the stock. The analyst thinks that macroeconomic-related concerns are weighing on the biotech sector. However, Sergott believes that tool manufacturing would not be heavily impacted by concerns related to inflation and recession.
Baron Funds shared its stance on Twist Bioscience Corporation (NASDAQ:TWST) in its Q2 2021 investor letter. Here’s what the firm said:
“We initiated a position in Twist Bioscience Corporation, a provider of synthetic DNA. The company’s proprietary semiconductor-based platform has driven its position as the low-cost provider of DNA for a variety of high-growth applications. These include the attractive areas of synthetic biology, liquid biopsy, and antibody discovery. Of note, the antibody business has the potential to become a source of high-margin royalty streams in the future. As further optionality, we believe Twist has a shot at disrupting the entire digital data storage industry with DNA-based storage.”
2. Fate Therapeutics, Inc. (NASDAQ:FATE)
Number of Hedge Fund Holders: 31
Cathie Wood’s Ark Investment Management’s Holdings: $265,041,000
Percentage of Cathie Wood’s Ark Investment Management’s Portfolio: 1.56%
Market Capitalization as of July 26: $2.97 billion
Fate Therapeutics, Inc. (NASDAQ:FATE) is a La Jolla, California-based biotech company focused on the development of immunotherapies to fight against cancer.
Fate Therapeutics, Inc. (NASDAQ:FATE) has its proprietary platform to generate cell therapy products. On July 11, Etzer Darout at BMO Capital upgraded Fate Therapeutics, Inc. (NASDAQ:FATE) stock from a Market Perform to an Outperform rating but revised the target price from $50 to $47. The analyst thinks that Fate Therapeutics, Inc.’s (NASDAQ:FATE) induced pluripotent stem cells (iPSCs) platform is uniquely positioned in the cell therapy space.
Overall, 31 hedge funds held a cumulative stake of $1.26 billion in Fate Therapeutics, Inc. (NASDAQ:FATE) at the end of Q1 2022.
1. PagerDuty, Inc. (NYSE:PD)
Number of Hedge Fund Holders: 26
Cathie Wood’s Ark Investment Management’s Holdings: $268,265,000
Percentage of Cathie Wood’s Ark Investment Management’s Portfolio: 1.58%
Market Capitalization as of July 26: $2.27 billion
PagerDuty, Inc. (NYSE:PD) is a San Francisco, California-based cloud computing corporation that has a SaaS incident response platform for IT departments across various industries.
On July 7, Kingsley Crane at Canaccord initiated coverage on PagerDuty, Inc. (NYSE:PD) stock with a target price of $32 and a Buy rating. The analyst highlighted that PagerDuty, Inc.’s (NYSE:PD) services have increased in importance as organizations are looking to save costs. Furthermore, PagerDuty, Inc. (NYSE:PD) has been able to protect its market share despite new entrants emerging. Crane sees PagerDuty, Inc.’s (NYSE:PD) expanding margins and breakeven free cash flow (FCF) profile as a positive sign for the company’s future.
ARK Investment Management held over 10.8 million shares in PagerDuty, Inc. (NYSE:PD) at the end of Q2 2022.
You can also take a peek at 10 Hedge Funds That the Economic Recession is Crushing and 10 Most Shorted Stocks to Watch in July.
