Below we look at why This Billionaire Hedge Fund Manager Just Sold Off Shopify Inc (SHOP) and 4 Other Stocks. For our methodology and a more comprehensive list please see This Billionaire Hedge Fund Manager Just Sold Off Shopify Inc (SHOP) and 9 Other Stocks.
5. 10x Genomics, Inc. (NASDAQ:TXG)
Former Value of D1 Capital Partners‘ 13F Position: $239 million
Number of Hedge Fund Shareholders: 22
Daniel Sundheim’s D1 Capital Partners unloaded its entire stake in 10x Genomics, Inc. (NASDAQ:TXG) during Q1, just one quarter after first taking a long position in the company. Ken Griffin’s Citadel Investment also sold off its stake in the company during Q1. Hedge fund ownership of TXG has fallen by 50% over the past five quarters.
10x Genomics, Inc. (NASDAQ:TXG) lost $0.38 per share in the first quarter on revenue of $114.5 million, the latter narrowly topping estimates while EPS missed by a moderate amount. The company admitted to having a slow start to the year in its Q1 earnings report, but is bullish on the accelerated adoption of its single cell and spatial technologies, and believes 2022 will be the most exciting year for the company yet in terms of product launches.
The ClearBridge All Cap Growth Strategy is bullish on 10x Genomics, Inc. (NASDAQ:TXG)’s dominant position in two key areas of scientific research, laying out its case for the company in the fund’s Q4 2021 investor letter:
“We also established a position in 10x Genomics (TXG). TXG is the dominant player in single-cell analysis and enjoys a duopoly in spatial profiling, two emerging areas of scientific research. Though the company is not yet profitable, we are attracted to the business’s strong gross margin profile and a high degree of visibility as consumables account for 85% of revenue. We also continue to see opportunities for investment in other disruptive areas of health care with large addressable markets, like diabetes.