In this article, we will take a look at the top 10 tech and automation stocks in Cathie Wood’s portfolio.
Cathie Wood is the founder and current CEO and CIO of Ark Investment Management. The 66-year-old hedge fund investor started her career at the Capital Group as an assistant economist in 1977. In 2001, she joined AllianceBernstein as CIO and managed over $5 billion. In 2014, she founded Ark Investment Management, which has grown to $41.64 billion as of the third quarter of 2021.
Cathie Wood has a special interest in technology and automation stocks. She focuses on stocks providing disruptive innovation through technology.
In the year 2020 when the whole world felt the effects of the pandemic, ARK Innovation ETF posted spectacular returns. Bloomberg named Cathie Wood as the best stock picker of 2020. However, the hedge fund’s performance has been suffering over the last several months. Cathie Wood argues that the stocks are in “deep value territory“, and she will continue to bet on her strategies on stocks with disruptive innovation.
Some of the notable stocks in Cathie Wood’s Q3 portfolio include Robinhood Markets, Inc. (NASDAQ:HOOD), Coinbase Global, Inc. (NASDAQ:COIN) and Tesla, Inc. (NASDAQ:TSLA).
Cathie Wood of ARK Investment Management
Our Methodology
This list is compiled by picking the top companies which are working on automation and digitalization from the Q3 13F portfolio of Cathie Wood.
Automation Stocks in Cathie Wood’s Portfolio
10. PTC Inc. (NASDAQ:PTC)
Ark Investment’s Stake Value: $15.18 million
Percent of 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 37
PTC Inc. (NYSE:PTC) is a US-based company working in the software industry. The company provides automation and digital transformation solutions to its commercial and industrial consumers across the globe. ThingWorx is a software platform by PTC Inc. (NYSE:PTC) that allows industries to digitally transform their business to future needs. Creo is another engineering software platform widely used for 3D designing and testing products.
Cathie Wood owned 126,717 shares, worth $15.18 million, in PTC Inc. (NYSE:PTC) in the third quarter of 2021. This accounted for 0.03% of her 13F portfolio. Just like PTC Inc. (NYSE:PTC), Robinhood Markets, Inc. (NASDAQ:HOOD), Coinbase Global, Inc. (NASDAQ:COIN), and Tesla, Inc. (NASDAQ:TSLA) are some of the top picks of Cathie Wood.
On December 15, 2021, Mizuho lowered its price target on PTC Inc. (NYSE:PTC) to $140 from $165 and continued its “Neutral” rating on the company stocks. According to the Insider Monkey’s database tracking 867 hedge funds in the third quarter of 2021, 37 hedge funds have stakes in PTC Inc. (NYSE:PTC), valued at $1.82 billion.
9. Autodesk, Inc. (NASDAQ:ADSK)
Ark Investment’s Stake Value: $17.34 million
Percent of 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 55
With 60,801 shares valued at $17.34 million, Autodesk, Inc. (NASDAQ:ADSK) accounts for 0.04% of the Q3 portfolio of Ark Investment. Autodesk, Inc. (NASDAQ:ADSK) is another US-based software company specializing in engineering design software and services.
AutoCAD 3D is one of the most famous software of the company that helps engineers and designers build mockups, design, perform analysis and surveys. Autodesk, Inc. (NASDAQ:ADSK) aims to provide automation in the designing process through its software and services. According to Insider Monkey’s database, is in the portfolio of 55 hedge funds at the end of the third quarter of 2021, valued at $2.36 billion.
In the third quarter filings, Autodesk, Inc. (NASDAQ:ADSK) reported an EPS of $1.33, beating the market estimates by $0.07. For the same quarter, Autodesk, Inc. (NASDAQ:ADSK) reported revenue of $1.13 billion, beating the market estimates by $6.48 million.
On November 29, 2021, Deutsche Bank continued a “Buy” rating on the stock and lowered its price target to $330 from $370. Deutsche Bank quoted the Q3 results as “mixed” and remained pessimistic about the future due to labor constraints and supply chain issues.
Here is what Polen Capital has to say about Autodesk, Inc. in its Q3 2021 investor letter:
“Shares of Autodesk have lagged recently due to expectations of short-term headwinds to free cash flow as the company transitions its billing structure to annual payments from multi-year up-front subscription payments. We view this as a transient issue and believe Autodesk’s attractive long-term growth profile remains in place.”
8. Teledyne Technologies Incorporated (NYSE:TDY)
Ark Investment’s Stake Value: $36.1 million
Percent of 13F Portfolio: 0.08%
Number of Hedge Fund Holders: 38
Teledyne Technologies Incorporated (NYSE:TDY) specializes in scientific and technical instruments. The company provides digital imagery, instrumentation, and aerospace electronics to industrial consumers in the US, Canada, the UK, and Europe. The company develops instruments essential in automating the production lines of industries.
Founded in 1960, Teledyne Technologies Incorporated (NYSE:TDY) has attracted investments from 38 hedge funds, valued at $1.703 billion, as tracked by Insider Monkey at the end of the third quarter of 2021.
Ark Investment Management held 84,037 shares in Teledyne Technologies Incorporated (NYSE:TDY) in the third quarter of 2021, valued at $36.117 million.
Teledyne Technologies Incorporated (NYSE:TDY) reported an EPS of $4.34 in the third quarter of 2021, beating the market consensus by $0.65. The company reported revenue of $1.31 billion for the third quarter, beating the market estimates by $16.48 million.
Here is what Artisan Small Cap Fund has to say about Teledyne Technologies Incorporated in its Q1 2021 investor letter:
“Teledyne Technologies is a supplier of ultra-sensitive components and sensors to various end markets. We initiated our campaign in 2012 as the company was divesting its defense sector-related business to transition to a more asset-light business exposed to several compelling secular trends. Over the course of our campaign, the company repositioned its business into higher-growth and higher-margin areas such as instrumentation, digital imaging and defense electronics. In Q1, Teledyne announced its intention to acquire FLIR Systems, the largest provider of thermal imaging systems for military and industrial applications. We expect the combined entity to far exceed our small-cap market cap mandate, and we ended our successful campaign.”
7. Teradyne, Inc. (NYSE:TER)
Ark Investment’s Stake Value: $61.34 million
Percent of 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 42
Teradyne, Inc. (NYSE:TER) develops automatic testing equipment for the semiconductor and wireless industry. With 561,829 shares in the third quarter, valued at $61.335 million, Teradyne, Inc. (NYSE:TER) accounts for 0.14% of the 13F portfolio of Cathie Wood.
42 hedge funds have stakes in Teradyne, Inc. (NYSE:TER), valued at $1.37 billion, as of the third quarter end of 2021, according to the database of Insider Monkey.
On December 15, 2021, Deutsche Bank raised its price target on Teradyne, Inc. (NYSE:TER) to $170 from $150 and kept a “Buy” rating.
In addition to Teradyne, Robinhood Markets, Inc. (NASDAQ:HOOD), Coinbase Global, Inc. (NASDAQ:COIN) and Tesla, Inc. (NASDAQ:TSLA) are some of the famous stocks in Cathie Wood’s portfolio.
6. 3D Systems Corporation (NYSE:DDD)
Ark Investment’s Stake Value: $110.62 million
Percent of 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 18
Apart from Robinhood Markets, Inc. (NASDAQ:HOOD), Coinbase Global, Inc. (NASDAQ:COIN), and Tesla, Inc. (NASDAQ:TSLA), Ark Investment Management has significant investments in the US-based 3D Systems Corporation (NYSE:DDD) which provides 3D printing hardware and digital manufacturing solutions to industries all across the globe.
In the September quarter of 2021, 3D Systems Corporation (NYSE:DDD) posted an EPS of $0.08, beating the market consensus by $0.03. Revenue for the third quarter totaled $156 million, beating the market estimates by $11.64 million.
As of the end of the third quarter of 2021, Ark Investment Management held 4.012 million shares of the company, worth $110.62 million, making it 0.26% of the 13F portfolio.
According to the database of Insider Monkey tracking 867 hedge funds in Q3 2021, 18 hedge funds were bullish on 3D Systems Corporation (NYSE:DDD), having stakes worth $284.7 million. On November 10, 2021, B. Riley lowered its price target on the stock to $24 from $26 and continued its “Neutral” rating.
5. Materialise NV (NASDAQ:MTLS)
Ark Investment’s Stake Value: $112.45 million
Percent of 13F Portfolio: 0.27%
Number of Hedge Fund Holders: 9
According to hedge funds data tracked by Insider Monkey, nine hedge funds have investments in Materialise NV (NASDAQ:MTLS), worth over $147.2 million as of the end of the third quarter of 2021. Materialise NV (NASDAQ:MTLS) specializes in developing manufacturing and medical software and 3D printing services. The company aims to automate patient-specific designing of surgical devices and implants through image-based analysis.
On October 10, 2021, JPMorgan initiated its coverage on the stock with an “Overweight” rating and kept a price target of $28. Ark Management held 5.59 million shares in Materialise NV (NASDAQ:MTLS), valued at $112.45 million, in the third quarter of 2021.
In the September quarter of 2021, Materialise NV (NASDAQ:MTLS) reported an EPS of $0.18, beating the market estimates by $0.16. In the same quarter, revenue came in at $60.98 million, beating the market estimates by $2 million.
4. Stratasys Ltd. (NASDAQ:SSYS)
Ark Investment’s Stake Value: $155.6 million
Percent of 13F Portfolio: 0.37%
Number of Hedge Fund Holders: 21
Stratasys Ltd. (NASDAQ:SSYS) is a Minneapolis-based technology company that provides 3D printing systems and services. Insider Monkey tracked that Stratasys Ltd. (NASDAQ:SSYS) was in the portfolio of 21 hedge funds in the September quarter of 2021, valued at $270.2 million.
In the third quarter of 2021, Cathie Wood’s Ark Management held 7.23 million shares in Stratasys Ltd. (NASDAQ:SSYS), valued at $155.58 million, accounting for 0.37% of its 13F portfolio. In the third quarter filings, Stratasys Ltd. (NASDAQ:SSYS) posted an EPS of $0.01, beating the market estimates by $0.07. Q3 revenue totaled $159.01 million, beating the estimates by $8.93 million.
On November 08, 2021, Loop Capital raised its price target on Stratasys Ltd. (NASDAQ:SSYS) to $35 from $19 and kept a “Hold” rating on the stock.
3. Trimble Inc. (NASDAQ:TRMB)
Ark Investment’s Stake Value: $364.6 million
Percent of 13F Portfolio: 0.87%
Number of Hedge Fund Holders: 34
With 4.43 million shares valued at $655.7 million, Ark Management is one of the leading hedge fund investors in Trimble Inc. (NASDAQ:TRMB). Trimble Inc. (NASDAQ:TRMB) works in the utility sector and provides electricity in Kansas to residential, commercial, and industrial consumers.
In the September quarter of 2021, Trimble Inc. (NASDAQ:TRMB) reported an EPS of $0.66, beating the market estimates by $0.05. Revenue for the same quarter came in at $901.4 million.
34 hedge funds have stakes in Trimble Inc. (NASDAQ:TRMB), valued at $1.82 billion in the third quarter of 2021, according to the database of Insider Monkey. On October 14, 2021, Piper Sandler initiated its coverage on the company with an “Overweight” rating and a price target of $101.
2. UiPath Inc. (NYSE:PATH)
Ark Investment’s Stake Value: $1.26 billion
Percent of 13F Portfolio: 3.02%
Number of Hedge Fund Holders: 27
Insider Monkey tracked that 27 hedge funds had stakes in UiPath Inc. (NYSE:PATH) in the September quarter of 2021. UiPath Inc. (NYSE:PATH) develops and manufactures end-to-end automation platforms and robotic process automation for a range of companies in the US, Romania, and Japan.
Ark Investment Management held 23.9 million shares of the company worth $1.259 billion in the third quarter of 2021. Ark Investment Management is also the leading hedge fund investor in UiPath Inc. (NYSE:PATH).
On December 15, 2021, BMO Capital lowered its price target on UiPath Inc. (NYSE:PATH) to $52 from $57 and kept a “Market Perform” rating on the stock.
Here is what ClearBridge Investments has to say about UiPath Inc. in its Q2 2021 investor letter:
“We participated in the IPO of UiPath, a developer of software for robotic process automation that uses AI, natural language processing and design to streamline complex processes across a variety of technology environments. The company is an industry leader with a superior solution for leveraging software to optimize workloads. Organizations around the world are beginning to understand the power of automation, with momentum picking up toward fully automating business processes, a $60 billion market today that could grow to $200 billion or more by 2030. UiPath has a unique pricing model, broad partner ecosystem and thoughtful management team supporting one of the strongest growth profiles in technology. Risks we are watching include a partial cloud transition ahead and increased competition from larger software platforms over time.”
1. Teladoc Health, Inc. (NYSE:TDOC)
Ark Investment’s Stake Value: $2.1 billion
Percent of 13F Portfolio: 5.01%
Number of Hedge Fund Holders: 40
Teladoc Health, Inc. (NYSE:TDOC) is a New York-based healthcare company that provides B2B solutions to clinics and other healthcare providers. The company aims to automate the healthcare system. Stakes worth $2.83 billion are invested in Teladoc Health, Inc. (NYSE:TDOC) by 40 hedge funds as of the end of September quarter of 2021, as tracked by Insider Monkey.
On December 02, 2021, Baird lowered its price target on Teladoc Health, Inc. (NYSE:TDOC) to $110 from $125 and continued a “Neutral” rating on the stock.
Ark Investment Management held 16.5 million shares in Teladoc Health, Inc. (NYSE:TDOC), valued at $2.58 billion in the third quarter of 2021. Ark Investment Management is also the leading hedge fund investor in Teladoc Health, Inc. (NYSE:TDOC).
Here is what Luca Capital has to say about Teladoc Health, Inc. in its Q3 2021 investor letter:
“As bullish as we are on the future of telemedicine though, we acquiesce that it can be difficult to build a durable moat. Although telemedicine is very scalable and an easy sell (everyone is a potential customer), the service itself is a commodity with little pricing power and low switching costs. However, scale is a significant advantage as a larger network of providers confers lower connection times and wider coverage. In addition, different areas of the country have varying access to care at any given time, but since regulations now allow providers to see patients across all states, we can better match doctors with patients under a national network, similar to “load balancing” in computing. Since Teladoc is international too, there also exists an opportunity to see patients across international borders. These are just a handful of reasons why we do not believe off-the-shelf consumer products like Zoom or Twilio will eventually replace the core telemedicine providers. They’re not integrated, not on-demand, limited to local physician supply, not accessible at the point-of-care via carts or other hospital equipment, and there’s nothing like Livongo to give the providers a continuous picture of patient health. Teladoc also allows whitelabelling, which enables health systems to take advantage of Teladoc’s additional provider supply while retaining the brand their patients have come to know and trust. However, while this incentivizes health systems to go with specialized platforms like Teladoc or Amwell, it’s making it more difficult for end-consumers to differentiate the major telemedicine providers at the product-level.”
You can also take a look at 10 Favorite Stocks of Cathie Wood and Ken Fisher and Top 10 Stock Picks of Paul Singer.
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Disclosure. None. Top 10 Tech and Automation Stocks in Cathie Wood’s Portfolio is originally published on Insider Monkey.
