Cliff Asness Is Selling These 10 Stocks

Published February 21, 2022 at 9:31 am EST Updated September 7, 2026 at 2:00 pm EDT

In this article, we discuss 10 stocks that Cliff Asness is selling.

Cliff Asness co-founded AQR Capital Management in 1998, which is a Connecticut-based hedge fund that manages money for institutional investors and financial advisors, investing in both traditional and alternative assets. The Q4 portfolio of AQR Capital Management is worth over $55 billion, up from roughly $54 billion in the prior quarter.

After graduating from the University of Pennsylvania with a bachelor’s in computer science and finance in 1988, Asness went on to complete his PhD in finance at the University of Chicago in 1994. Cliff Asness worked at Goldman Sachs Asset Management while pursuing his PhD, before starting his own hedge fund in 1998, alongside David Kabiller, John Liew, and Robert Krail.

AQR Capital Management is a quantitative hedge fund that invests mainly in the information technology, industrials, healthcare, finance, consumer staples, consumer discretionary, and communications sectors, with a top ten holdings concentration of 17.05%.

The hedge fund’s top buys for Q4 2021 were Tesla, Inc. (NASDAQ:TSLA), Pfizer Inc. (NYSE:PFE), and Chevron Corporation (NYSE:CVX), whereas, AQR Capital Management reduced holdings in Meta Platforms, Inc. (NASDAQ:FB), Target Corporation (NYSE:TGT), and Verizon Communications Inc. (NYSE:VZ).

The most notable stocks in the fourth quarter portfolio of Cliff Asness’ AQR Capital Management included Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), among others discussed in detail below.

Our Methodology

We used the Q4 2021 portfolio of Cliff Asness’ AQR Capital Management for this analysis, selecting the 10 most popular stocks that the hedge fund discarded in the period. We have ranked the securities according to the hedge fund sentiment around the holdings.

Cliff Asness of AQR Capital Management

Cliff Asness Is Selling These Stocks

10. Workhorse Group Inc. (NASDAQ:WKHS)

Number of Hedge Fund Holders: 11

Workhorse Group Inc. (NASDAQ:WKHS) is an Ohio-based company that manufactures equipment, technology, electric vehicles, and delivery drones for the transportation, automotive, and aerospace industries.

Cliff Asness’ fund purchased a stake in Workhorse Group Inc. in Q3 2020, and by the third quarter of 2021, AQR Capital Management held 76,874 shares of the company, worth $588,000. The hedge fund sold out of its Workhorse Group Inc. stake completely in Q4 2021.

On February 8, B. Riley analyst Christopher Souther lowered the price target on Workhorse Group Inc. to $7 from $13 and kept a Buy rating on the shares. The analyst recommends taking advantage of the weakness around “short-term disruptions” for individual sustainable energy companies or the sector overall, “provided the volatility hasn’t impacted the longer-term growth thesis”. However, the lowered price targets across the sector reflect multiple compression.

According to the Q3 database of Insider Monkey, 11 hedge funds were bullish on Workhorse Group Inc., down from 13 funds in the quarter earlier. Sculptor Capital held a prominent stake in Workhorse Group Inc. in Q3 2021, with 784,200 shares worth roughly $6 million.

Cliff Asness held significant stakes in Apple Inc., Microsoft Corporation, and Alphabet Inc., but he chose to unload shares of Workhorse Group Inc. in Q4 2021.

9. TAL Education Group (NYSE:TAL)

Number of Hedge Fund Holders: 16

Based in Beijing, China, TAL Education Group (NYSE:TAL) offers after-school tutoring, educational consultancy, and standardized preparatory tests. AQR Capital Management started building its position in TAL Education Group in Q1 2017, and by the third quarter of 2021, the hedge fund held 34,233 shares worth $133,000. After dumping shares of TAL Education Group steadily over time, the fund discarded its stake entirely in Q4 2021.

Morgan Stanley analyst Sheng Zhong on January 9 downgraded TAL Education Group to Underweight from Equal Weight with a price target of $3.50, down from $5.40. In view of the risk regarding Chinese companies listed in the United States, the analyst applies a 20% discount to TAL Education Group’s sum-of-the-parts value, and expects regulation in China to remain an overhang on senior academic tutoring and test prep vocational tutoring in 2022.

Among the hedge funds monitored by Insider Monkey in the third quarter of 2021, 16 funds were bullish on TAL Education Group, with stakes worth $201.1 million, as compared to 27 funds in the prior quarter, holding stakes in TAL Education Group worth $606.6 million. Yiheng Capital is the leading TAL Education Group stakeholder as of Q3 2021, with 14.3 million shares worth $69.47 million.

Here is what Tao Value has to say about TAL Education Group in its Q3 2021 investor letter:

“On the other hand, TAL Education (TAL)’s value is largely destroyed by the policy officially released on 7/24/2021, which essentially outlawed for-profit curriculum-related after school tutoring (which is TAL’s main business). It is a hard lesson learned here that government related risk is a substantial one, especially for Chinese businesses.”

8. Leggett & Platt, Incorporated (NYSE:LEG)

Number of Hedge Fund Holders: 16

Leggett & Platt, Incorporated is a manufacturer of residential bedding, furniture, automotive seating, and industrial materials for businesses and wholesalers.

AQR Capital Management is a long-time shareholder of Leggett & Platt, Incorporated, first buying shares of the company in Q4 2010. The hedge fund sold out of its position in Leggett & Platt, Incorporated once in Q2 2018, before buying back shares in Q4 2019. In the third quarter of 2021, Cliff Asness’ fund owned 6,664 shares of the company, worth $299,000, which it discarded entirely in Q4 2021.

In its Q4 earnings report, published on February 7, Leggett & Platt, Incorporated posted an EPS of $0.77, beating estimates by $0.04. Revenue over the period jumped 12.77% year-over-year to $1.33 billion, outperforming estimates by $47.39 million.

Raymond James analyst Bobby Griffin on February 9 lowered the price target on Leggett & Platt, Incorporated to $50 from $55 and kept an Outperform rating on the shares, reflecting lower near-term earnings driven by volume pressure in the bedding and automotive businesses.

On November 9, Leggett & Platt, Incorporated declared a $0.42 per share quarterly dividend, a 5% increase from its prior dividend of $0.40, which was paid on January 14.

A total of 16 hedge funds held long positions in Leggett & Platt, Incorporated in Q3 2021, up from 14 funds in the quarter earlier. Balyasny Asset Management is the largest Leggett & Platt, Incorporated shareholder, with a $10.3 million position in the company as of September 2021.

7. Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Number of Hedge Fund Holders: 17

Bed Bath & Beyond Inc. is a New Jersey-based retail chain that sells home furnishings and domestic merchandise, serving customers across the United States, Mexico, Canada, and Puerto Rico.

Cliff Asness has held a stake in Bed Bath & Beyond Inc. since Q4 2010, and in the third quarter of 2021, the billionaire owned 35,200 shares of Bed Bath & Beyond Inc., worth $608,000. After gradually decreasing his stake in the company for the last few quarters, Cliff Asness disposed of the stock entirely in Q4 2021.

Argus analyst Chris Graja on January 11 kept a Hold rating and also lowered his FY22 EPS view on Bed Bath & Beyond Inc. after the company’s Q3 earnings miss and lowered guidance. According to the analyst, while Bed Bath & Beyond Inc.’s performance improved in November, the quarter was weaker than hoped.

Among the hedge funds tracked by Insider Monkey in Q3 2021, 17 funds were bullish on Bed Bath & Beyond Inc., with stakes worth $122.1 million, as compared to 21 funds in the quarter earlier, holding stakes in Bed Bath & Beyond Inc. worth $363.6 million. Arrowstreet Capital held a $46.3 million position in the company in the third quarter, and is one of the prominent stakeholders of the company.

Here is what Miller Value Partners has to say about Bed Bath & Beyond Inc. in its Q3 2021 investor letter:

“Our largest laggard during the quarter was Bed Bath & Beyond (BBBY). As we have highlighted previously, not all transformations are linear and there is always the potential for a short-term pullback in executing the plan. We expect the operational pause will lead to marketplace skepticism and question the success of the long-term plan. The company has had some near-term challenges from weaker store traffic related to Covid-19 delta variant’s impact along with rising supply chain and transportation costs. However, we disagree with the marketplace view that these headwinds will continue to overwhelm the significant ongoing improvements that management is making to the core operations. We very much like the new CEO and his additions to his management team – strong executives with significant transformation experience. As the new initiatives further rollout over the coming quarters, we expect to see further improvement in future operating trends. Management is in the process of rolling out 8-10 owned brands, which should drive margin expansion and dramatically enhance the overall business model. Store brands are 1,000 basis points higher gross margin than national brands, and as they move from 10% to 30% of sales, they should become a significant positive profit contributor and help management achieve their long-term gross margin target of 38%. Bed Bath also continues to have a very strong balance sheet ($10/share in cash), and has been using non-core asset sales to complete a very accretive share buyback program (likely greater than 20% of the float by year-end). With the recent pullback, we see some similarities to GameStop early in their turnaround as the company aggressively reduced their shares outstanding (>30%) ahead of revenue stability and profit improvement. We believe success on Bed Bath’s transformation plan should see profits double over the next couple of years and should lead to significantly higher normalized earnings and free cash flow per share. At an enterprise value to revenue under .2x, we believe Bed Bath remains at a significant discount to its intrinsic value.”

6. Groupon, Inc. (NASDAQ:GRPN)

Number of Hedge Fund Holders: 18

Groupon, Inc. (NASDAQ:GRPN) is a Chicago-based global e-commerce marketplace that connects users with local vendors by offering coupons, vouchers, and fun activities. Cliff Asness purchased a stake in Groupon, Inc. in Q2 2020, and in Q3 2021, he owned 9,103 shares of the company, worth $208,000. Asness sold out of his position entirely in Q4 2021.

On December 23, Ascendiant analyst Edward Woo lowered the price target on Groupon, Inc. to $35 from $40 and kept a Buy rating on the shares. The company reported strong Q3 earnings but “mixed” new 2021 guidance, the analyst told investors in a research note. He sees a favorable risk/reward at current share levels.

According to the third quarter database of Insider Monkey, 18 hedge funds were long Groupon, Inc., down from 28 funds in the preceding quarter. The largest Groupon, Inc. stakeholder as of Q3 2021 is PAR Capital Management, with 2.78 million shares worth $63.4 million.

Cliff Asness was bearish on Groupon, Inc. in Q4 2021, but he held long positions in Apple Inc., Microsoft Corporation, and Alphabet Inc..

5. The Cheesecake Factory Incorporated (NASDAQ:CAKE)

Number of Hedge Fund Holders: 20

Cliff Asness discarded its stake in The Cheesecake Factory Incorporated (NASDAQ:CAKE), an American restaurant company, in the fourth quarter of 2021, selling 26,809 shares that were owned as of Q3 2021. Cliff Asness first purchased shares of The Cheesecake Factory Incorporated back in Q4 2010.

On January 5, Stephens analyst James Rutherford upgraded The Cheesecake Factory Incorporated to Overweight from Equal Weight, with a price target of $47, down from $53. The analyst reasoned that the stock’s “ongoing underperformance” and its ability to exceed 2019 unit volumes with the help of a strong off-premise business were why he upgraded The Cheesecake Factory Incorporated. The analyst further noted that the company can retain these sales in 2022.

Castle Hook Partners held the biggest stake in The Cheesecake Factory Incorporated in the third quarter of 2021, with 639,373 shares worth $30 million. Overall, 20 hedge funds were bullish on The Cheesecake Factory Incorporated, down from 26 funds in the preceding quarter.

Here is what Baron Small Cap Fund has to say about The Cheesecake Factory Incorporated in its Q1 2021 investor letter:

“Shares of The Cheesecake Factory, Inc., the operator of casual dining restaurants, were up significantly in the first quarter, as their dining rooms reopened, and business recovered from the depths caused by COVID restrictions. We believe that the company weathered the downturn very well and emerged a stronger, more profitable entity, with an improved outlook. Off Premise sales were robust during the shutdown, and we believe that a good portion of those sales will be retained, so that each restaurant will do more revenue than before. We expect about 15% of restaurants in the casual dining space will be shuttered forever, which will help Cheesecake’s volumes and already strong competitive position. And we are excited about the opportunity for it to grow units, especially in the North Italia and Fox brands, which the company acquired prior to COVID. However, with the stock quadrupling off the bottom and back to its highs of five years ago, and trading at a good multiple of our expectation of near-term earnings, we sold about a third of our position into strength.”

4. Lyft, Inc. (NASDAQ:LYFT)

Number of Hedge Fund Holders: 33

Lyft, Inc. (NASDAQ:LYFT) is a California-based company that offers vehicles for hire, rental cars, and food delivery services across the United States and Canada. In Q4 2020, Cliff Asness purchased shares of Lyft, Inc., and by Q3 2021, his hedge fund held 14,550 Lyft, Inc. shares, worth $765,000. He sold the entirety of his position in the company in Q4 2021.

On February 8, Lyft, Inc. reported earnings for Q4 2021. The company posted an EPS of $0.10, beating estimates by $0.01. Revenue for the period jumped 70.19% year-on-year to approximately $970 million, surpassing estimates by $29.05 million.

RBC Capital analyst Brad Erickson on February 9 lowered the price target on Lyft, Inc. to $53 from $65 but kept an Outperform rating on the shares. The Q4 miss in active riders and below-consensus guidance may embolden bears, but the likely strong post-pandemic travel recovery would seem to carry a positive risk/reward on the stock, the analyst told investors in a research note.

Among the hedge funds tracked by Insider Monkey in Q3 2021, 33 funds were bullish on Lyft, Inc., down from 43 funds in the prior quarter. Alkeon Capital Management held the biggest stake in Lyft, Inc. as of September 2021, with 4.72 million shares worth $253.2 million.

Here is what ClearBridge Investments has to say about Lyft, Inc. in its Q2 2021 investor letter:

“We also added to our disruptors’ exposure in the second quarter with the purchase of Lyft, a leading, U.S. focused ride-hailing business. Lyft operates in a rational duopoly with Uber and has been able to maintain consistent 30%–35% market share for the past several years. The company should be a key beneficiary of the U.S. reopening, with a post-COVID-19 recovery in rideshare demand driving an acceleration in volumes and revenue. We also see considerable runway for growth beyond this rebound, as rideshare remains underpenetrated. Lyft’s ability to weather a period of significant demand destruction in 2020 is encouraging and we see opportunity for margin expansion ahead. Despite volatility created by ongoing labor negotiations, we see the potential for new, state-level legislation creating collective bargaining rights for gig economy workers to provide greater certainty around industry labor costs, with increases that should be manageable.”

3. Coupa Software Incorporated (NASDAQ:COUP)

Number of Hedge Fund Holders: 52

Based in California, Coupa Software Incorporated (NASDAQ:COUP) is a global technology company offering a platform to assist customers with business spend management. Initially investing in Coupa Software Incorporated back in Q2 2018, Cliff Asness held 5,379 shares of the company in the third quarter of 2021, worth $1.17 million, which he disposed of completely in Q4 2021.

BMO Capital analyst Daniel Jester initiated coverage of Coupa Software Incorporated on January 31 with a Market Perform rating and a $135 price target. According to the analyst, Coupa Software Incorporated’s growth has slowed over the past year, which he attributes to some solutions falling lower on the digital transformation priority list as workers shifted to hybrid work environments with “little to no” corporate travel. While the analyst believes this dynamic will shift, he thinks the tactical set-up into Q4 results “still looks difficult”.

Stephen Mandel’s Lone Pine Capital held the largest stake in Coupa Software Incorporated as of Q3 2021, with 4.5 million shares worth over $1 billion. Overall, 52 hedge funds monitored by Insider Monkey were bullish on Coupa Software Incorporated, with stakes amounting to $4.5 billion.

Here is what ClearBridge Investments has to say about Coupa Software Incorporated in its Q2 2021 investor letter:

“Within IT, we added positions in Coupa Software, a leader in the fast growing Business Spend Management market with opportunity to double its total addressable market by harnessing B2B payments with its Coupa Pay product; and AppLovin, a leading mobile gaming advertising network in a unique position to utilize its ad expertise to grow its own mobile game business at low user acquisition costs.”

2. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 62

Datadog, Inc. (NASDAQ:DDOG) is a New York-based company offering a SaaS-based data analytics platform. Cliff Asness’ AQR Capital Management purchased shares of Datadog, Inc. in Q4 2020, and by the third quarter of 2021, the hedge fund owned 7,605 Datadog, Inc. shares, worth over $1 million. Cliff Asness discarded his position in the company in Q4 2021.

Publishing its Q4 results on February 10, Datadog, Inc. reported earnings per share of $0.20, beating estimates by $0.09. The $326.20 million revenue gained 83.74% year-on-year, exceeding estimates by $34.75 million.

Truist analyst Joel Fishbein on February 11 raised the price target on Datadog, Inc. to $225 from $200 and kept a Buy rating on the shares. The company delivered “another strong beat and raise” in Q4 and growth is accelerating via both core and new products across all geographies, the analyst told investors in a bullish note.

A total of 62 hedge funds were bullish on Datadog, Inc. in Q3 2021, and Tiger Global Management held the largest stake in the company, with 5.2 million shares worth $740.7 million.

Here is what ClearBridge Mid Cap Growth Strategy has to say about Datadog, Inc. in its Q3 2021 investor letter:

“The ClearBridge Mid Cap Growth Strategy delivered positive absolute performance and outperformed the benchmark in the third quarter, with the primary differentiator being stock selection among our IT holdings. The tech names in the portfolio gained 10.1% for the quarter compared to a 2.2% gain for tech in the benchmark. Most of the heavy lifting was done by enterprise software holdings that are helping businesses analyze activity and execute more efficiently, such as Datadog. The leading contributors to absolute returns during the third quarter included Datadog.”

1. Peloton Interactive, Inc. (NASDAQ:PTON)

Number of Hedge Fund Holders: 62

Peloton Interactive, Inc. (NASDAQ:PTON) markets fitness equipment and subscription-based online exercise classes to users across North America and worldwide. Cliff Asness purchased a stake in Peloton Interactive, Inc. in Q4 2020, and over time, he gradually reduced his position in the company before selling off the 11,939 shares he held as of Q3 2021 in the fourth quarter of 2021.

On February 8, Peloton Interactive, Inc. reported its Q4 results, posting a loss per share of $1.22, missing estimates by $0.30. The $1.13 billion revenue missed market consensus by $17.35 million.

MKM Partners analyst Rohit Kulkarni raised the price target on Peloton Interactive, Inc. to $35 from $30 but kept a Neutral rating on the shares on February 10, citing the company’s Q4 results, updated outlook, and announced management changes as reasons for the lifted price target.

At the end of the third quarter of 2021, D1 Capital Partners was a prominent Peloton Interactive, Inc. stakeholder, with more than 6.8 million shares worth $599 million. Overall, 62 hedge funds were bullish on the stock in Q3 2021.

Here is what Miller Value Partners Opportunity Equity has to say about Peloton Interactive, Inc. in its Q4 2021 investor letter:

“Money losing growth stocks posted the biggest losses late in the year. Jim Cramer termed this behavior getting “pelotoned,” as Peloton is the poster child for what we experienced. At recent prices ($31.33 as of close 1/14/22), Peloton is more than 80% off its highs. It’s reversed nearly all its pandemic gains, trading at levels close to the IPO price ($29).

We previously owned Peloton, so we know the company well. We bought Peloton after the IPO based on our belief it was a misunderstood consumer brand pegged as a faddish hardware company.

It benefited enormously from the pandemic as demand surged and customer acquisition costs plummeted. We expected these dynamics to reverse as the environment normalized from stay-at-home. We sold in late 2020 because we thought it was fully valued around $100. Growing risks created a poor risk/reward.

At current prices, it’s interesting once again and we’ve resumed work on it. Market sentiment towards money losers remains quite negative. Peloton’s prospects, like others, ultimately depend on its ability to drive free cash flow over the long term. We reference Peloton because it’s an extreme example of behavior we’ve seen more broadly.”

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