Hedge Funds are Selling These 5 Cathie Wood Stocks

2. Coinbase Global, Inc. (NASDAQ:COIN)

Number of Hedge Fund Holders: 46

Decline in Hedge Fund Holders: 11

ARK Investment Management’s Stake Value: $1.32 billion

Percentage of ARK Investment Management’s Portfolio: 5.53%

Coinbase Global, Inc. (NASDAQ:COIN) is a leading cryptocurrency trading platform. It has been hit by the recent negative market sentiment around tech stocks, as well as an outstanding drop in crypto prices. The company shares are down 70.60% in the year to date as of June 2.

A detailed examination of the 900+ hedge funds in the database of Insider Monkey showed that 46 hedge funds owned stakes in Coinbase Global, Inc. (NASDAQ:COIN) at the end of the first quarter, with a collective price tag of $2.32 billion. This is down from 57 hedge funds a quarter ago with $3.46 billion worth of positions in the company.

But Cathie Wood increased her position in Coinbase Global, Inc. (NASDAQ:COIN) by 29% in the first quarter, establishing her as the firm’s biggest shareholder with a $1.32 billion stake consisting of 6.98 million shares. In contrast, she held 5.45 million shares of Coinbase Global, Inc. (NASDAQ:COIN) according to her Q4 portfolio.

Coinbase Global, Inc. (NASDAQ:COIN) reported EPS below estimates by $2.17 for the first quarter, while its quarterly revenue of $1.17 billion also underperformed analysts’ forecasts by nearly $310 million.

On May 26, Cowen analyst Stephen Glagola initiated coverage of Coinbase Global, Inc. (NASDAQ:COIN) with an ‘Outperform’ rating and a price target of $85, commenting that the company was “built to last.” The analyst forecasts double-digit compound annual growth rate (CAGR) for “the foreseeable future,” and believes the company’s regulatory adherence and security infrastructure provide it a structural advantage over global competitors.

Investment firm Longleaf Partners Fund talked about Coinbase Global, Inc. (NASDAQ:COIN) in its Q4 2021 investor letter. It said:

“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Coinbase is a prime example.”