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Cathie Wood’s ARK Portfolio: Top 15 Losers

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·15 min read
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  • CDNA
  • EXAS
  • ZG
  • SHOP
  • ZM
  • TDOC
  • ACCD
  • CRSP
  • IONS
  • SE
  • COIN
  • TSLA

In this article, we discuss the 15 biggest losers in the portfolio of Cathie Wood's ARK. If you want to skip our detailed analysis of these stocks, go directly to Cathie Wood’s ARK Portfolio: Top 5 Losers.

Cathie Wood of ARK Investment Management has suffered devastating losses this year as the growth-focused portfolio of her investment firm bears the brunt of a market shift towards value offerings amid inflation concerns and fears around the valuations of tech-led disruptors at the market. Latest filings show that the portfolio of her fund was in the excess of $41 billion at the end of September, a sharp drop from $53 billion at the end of June. Wood has used the slump to double down on her bets, increasing stakes in eight of the top ten holdings.

This does not bode well for ARK Investment Management since calculations show that among the fifty holdings of the fund, more than 15 have registered share prices losses of more than 38% since the beginning of this year. The flagship ARK Innovation ETF of Wood, which was the standout performer of 2020 with gains of 152%, is down more than 24% year-to-date. All of the stocks in the ETF are in the bear market, except a couple, according to a report from news platform CNBC.

Wood appears unfazed by the chaos. In fact, she has touted the growth potential of DNA sequencing, robotics, artificial intelligence and blockchain as “unstoppable”. Some of the top stocks in the portfolio of ARK Investment Management at the end of the third quarter of 2021 included Tesla, Inc. (NASDAQ:TSLA), Coinbase Global, Inc. (NASDAQ:COIN), Shopify Inc. (NYSE:SHOP), Twitter, Inc. (NYSE:TWTR), and Sea Limited (NYSE:SE), among others.

Our Methodology

These stocks were identified using the third quarter investment portfolio of ARK Investment Management. The companies with share price losses of more than 30% year-to-date were preferred for the list. The 52-week high, year-to-date percentage loss, and the share price of each stock, as of December 7, is mentioned alongside other details for further clarity.

The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.

Cathie Wood's ARK Suffering Losses: 15 Biggest Losers
Cathie Wood's ARK Suffering Losses: 15 Biggest Losers

Cathie Wood of ARK Investment Management

Cathie Wood’s ARK Portfolio: Top Losers

15. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Holders: 57

52-Week High: $490.76

Real-Time Share Price as of December 7: $218.05

Percentage Loss in Share Price Year-to-Date: 31.41%

Roku, Inc. (NASDAQ:ROKU) owns and runs a TV streaming platform. Latest data shows that ARK Investment Management owned 4.7 million shares of Roku, Inc. (NASDAQ:ROKU) at the end of the third quarter of 2021 worth $2.1 billion, representing 4.05% of the portfolio.

On November 17, investment advisory MoffettNathanson downgraded Roku, Inc. (NASDAQ:ROKU) stock to Sell from Neutral and lowered the price target to $220 from $330, underlining that the long-term earnings and revenue estimates for the firm were “too high”.

At the end of the third quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $2.8 billion in Roku, Inc. (NASDAQ:ROKU), down from 61 in the preceding quarter worth $5.6 billion.

In addition to Tesla, Inc. (NASDAQ:TSLA), Coinbase Global, Inc. (NASDAQ:COIN), Shopify Inc. (NYSE:SHOP), Twitter, Inc. (NYSE:TWTR), and Sea Limited (NYSE:SE), Roku, Inc. (NASDAQ:ROKU) is one of the growth stocks occupying the attention of elite investors.

In its Q4 2020 investor letter, RGA Investment Advisors, an asset management firm, highlighted a few stocks and Roku, Inc. (NASDAQ:ROKU) was one of them. Here is what the fund said:

“For two years running, Roku has now been either the largest or second largest driver of performance in portfolios. When we purchased Roku, obviously we never expected such a phenomenal outcome, so quickly—these things can only be chalked up to luck. However, we do think luck is the residue of design and Roku had all the hallmarks ex ante as the kind of position that could do something wildly spectacular. One of the first signs in seeing Roku’s potential was the sharp contrast between our modeled expectations for the top line of the business and where the consensus expectations were. This was the Shopify setup all over again. By this time, we had added an additional tool to our analytical framework, and this helped further enforce our conviction that not only was it we who were right about where things should go, but also that the very existence of this gap could be a potent source of fuel behind the stock as the world came around to our expectation. Specifically, we had become increasingly comfortable building lifetime value analyses of companies, and notably, when we bought Roku, we were quite confident that with only modest annual increases in average revenue per user (ARPU), and a 5-year average customer lifespan, we were buying the company for its existing customer base and nothing more. In other words, the growth at Roku was entirely free at the prevailing prices we bought into."

14. CareDx, Inc (NASDAQ:CDNA)

Number of Hedge Fund Holders: 29

52-Week High: $99.83

Real-Time Share Price as of December 7: $44.77

Percentage Loss in Share Price Year-to-Date: 37.41%

CareDx, Inc (NASDAQ:CDNA) is a biotech firm focusing on transplant patients. According to regulatory filings, ARK Investment Management owned 4.5 million shares in CareDx, Inc (NASDAQ:CDNA) at the end of September 2021 worth $417 million, representing 0.77% of the portfolio.

CareDx, Inc (NASDAQ:CDNA) stock has slumped in recent weeks after the company revealed that the Department of Justice was investigating the company over conduct related to kidney testing and phlebotomy services.

Among the hedge funds being tracked by Insider Monkey, Waltham-based investment firm Matrix Capital Management is a leading shareholder in CareDx, Inc (NASDAQ: CDNA) with 1.7 million shares worth more than $110 million.

In its Q1 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and CareDx, Inc (NASDAQ:CDNA) was one of them. Here is what the fund said:

“CareDx, Inc. was among the top contributors to performance during the second quarter. CareDx provides high-value and differentiated diagnostic surveillance products for patients receiving organ or stem cell transplants. Its diagnostic tests can increase the chances of successful transplants by facilitating a better match between donors and recipients of stem cells and organs. In post transplant diagnostics, CareDx offers tests for monitoring signs of rejection in kidney and heart transplant patients. Shares of CareDx outperformed due to stronger-than-expected first quarter testing volumes, revenues and earnings.

Strong testing volumes were driven by continued adoption of CareDx’s heart and kidney rejection tests. In addition, a new reimbursement policy by Medicare will allow CareDx’s lung transplant rejection test to be commercialized early next year, which is sooner than previously expected.”

13. Exact Sciences Corporation (NASDAQ:EXAS)

Number of Hedge Fund Holders: 40

52-Week High: $159.54

Real-Time Share Price as of December 7: $84.05

Percentage Loss in Share Price Year-to-Date: 34.73%

Exact Sciences Corporation (NASDAQ:EXAS) provides medical diagnostic test products. The hedge fund of Cathie Wood owned 10.7 million shares of Exact Sciences Corporation (NASDAQ:EXAS) at the end of the third quarter of 2021 worth more than $1.3 billion, representing 2.48% of the total portfolio.

Exact Sciences Corporation (NASDAQ:EXAS) has a market cap of $13 billion and posted over $1.4 billion in revenue last year. The short interest on the stock has climbed above 7% in recent days. The firm missed market estimates on earnings per share for the third quarter recently.

At the end of the third quarter of 2021, 40 hedge funds in the database of Insider Monkey held stakes worth $1.9 billion in Exact Sciences Corporation (NASDAQ:EXAS), up from 35 in the previous quarter worth $2.3 billion.

Despite losses, hedge funds are holding on to Exact Sciences, just like Tesla, Inc. (NASDAQ:TSLA), Coinbase Global, Inc. (NASDAQ:COIN), Shopify Inc. (NYSE:SHOP), Twitter, Inc. (NYSE:TWTR), and Sea Limited (NYSE:SE).

In its Q4 2020 investor letter, RiverPark Advisors, LLC, an asset management firm, highlighted a few stocks and Exact Sciences Corporation (NASDAQ:EXAS) was one of them. Here is what the fund said:

“EXAS shares were the final top contributor for the quarter on both the acquisition of Thrive Earlier Detection, a leading multi-cancer screening company, and strong earnings. Third quarter revenue grew 87% to $408 million, including $102 million from COVID19 testing, and the company reported a 77% gross margin and $94 million of adjusted EBITDA, up 16% year over year.

The company’s Thrive acquisition combines cancer screening pioneers, specifically integrating Thrive’s early-stage cancer screening test CancerSEEK, with Exact’s scientific platform, clinical organization, and commercial infrastructure (the largest commercial team by far with over 1,000 people in cancer diagnostics). Thrive’s recent CancerSEEK study is the only liquid biopsy clinical trial that screens undiagnosed patients. Combined with Exact’s own multi-cancer liquid biopsy screening test (management disclosed compelling data on it for the first-time), Exact has quickly pivoted from its single cancer screening tests (Cologuard for colon cancer and Oncotype for breast cancer) and is now positioned as a leader in the $25 billion+ multi-cancer screening market.”

12. Accolade, Inc. (NASDAQ:ACCD)

Number of Hedge Fund Holders: 28

52-Week High: $65.25

Real-Time Share Price as of December 7: $26.87

Percentage Loss in Share Price Year-to-Date: 35.17%

Accolade, Inc. (NASDAQ:ACCD) is a technology-first healthcare company. ARK Investment Management owned 5.4 million shares in Accolade, Inc. (NASDAQ:ACCD) at the end of September 2021 worth $294 million, representing 0.54% of the portfolio of the fund.

Needham analyst Ryan MacDonald has a Buy rating on Accolade, Inc. (NASDAQ:ACCD) stock but recently lowered the price target to $56 from $68, underlining the board-based multiple compression in the digital health space as one of the reasons behind the lowered target.

At the end of the third quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $482 million in Accolade, Inc. (NASDAQ:ACCD), up from 24 the preceding quarter worth $594 million.

11. Zoom Video Communications, Inc. (NASDAQ:ZM)

Number of Hedge Fund Holders: 56

52-Week High: $451.77

Real-Time Share Price as of December 7: $190.00

Percentage Loss in Share Price Year-to-Date: 47.26%

Zoom Video Communications, Inc. (NASDAQ:ZM) owns and runs a video communications platform. At the end of the third quarter of 2021, ARK Investment Management owned 3.6 million shares in Zoom Video Communications, Inc. (NASDAQ:ZM) worth $1.4 billion, representing 2.64% of the portfolio.

The competition from back-to-work tech platforms like Salesforce, Microsoft, and Meta has forced a large correction in Zoom Video Communications, Inc. (NASDAQ:ZM) stock in recent months that had soared during the work-from-home period last year.

Among the hedge funds being tracked by Insider Monkey, New York-based firm Tiger Global Management LLC is a leading shareholder in Zoom Video Communications, Inc. (NASDAQ:ZM) with 4.7 million shares worth more than $1.2 billion.

In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Zoom Video Communications, Inc. (NASDAQ:ZM) was one of them. Here is what the fund said:

“We concluded our campaigns in Zoom Video Communications. We have been paring our position in Zoom for several quarters, anticipating the reduced need for video conferencing as vaccination rates climb and people return to their workplaces. That said, we believe there is a strong case to be made that the pandemic has prompted a permanent inflection in videoconferencing’s importance—sustainably higher remote work arrangements, more online learning and less business travel. Furthermore, the company’s dramatically expanded user base (up 485% YoY in Q3) positions it well to cross sell additional services, Zoom Phone in particular. The long-term future remains bright, but we decided to end our successful investment campaign in favor of opportunities in our pipeline with more attractive near-term growth prospects.”

10. Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)

Number of Hedge Fund Holders: 24

52-Week High: $64.37

Real-Time Share Price as of December 7: $30.47

Percentage Loss in Share Price Year-to-Date: 46.34%

Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) is a California-based biotech firm. Regulatory filings show that ARK Investment Management owned 8.9 million shares in Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) at the end of the third quarter of 2021 worth over $355 million, representing 0.66% of the portfolio.

In earnings results for the third quarter, posted on November 3, Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) reported earnings per share of -$0.58, missing estimates by $0.05. The revenue over the period was $133 million, down close to 17% year-on-year.

Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Camber Capital Management is a leading shareholder in Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) with 2.5 million shares worth more than $83 million.

9. Zillow Group, Inc. (NASDAQ:Z)

Number of Hedge Fund Holders: 67

52-Week High: $208.11

Real-Time Share Price as of December 7: $62.42

Percentage Loss in Share Price Year-to-Date: 52.32%

Zillow Group, Inc. (NASDAQ:Z) operates as a digital real estate firm. According to the latest data, ARK Investment Management owned 10 million shares in Zillow Group, Inc. (NASDAQ:Z) at the end of September 2021 worth $1.2 billion, representing 2.30% of the portfolio.

Piper Sandler analyst Thomas Champion recently maintained a Neutral rating on Zillow Group, Inc. (NASDAQ:Z) stock and lowered the price target to $68 from $78, noting that there were many strategic questions that were unanswered for the stock even though it seemed reasonably valued.

At the end of the third quarter of 2021, 67 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Zillow Group, Inc. (NASDAQ:Z), down from 76 in the preceding quarter worth $5.2 billion.

In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Zillow Group, Inc. (NASDAQ:Z) was one of them. Here is what the fund said:

“Zillow Group, Inc. operates leading U.S. real estate sites, a mortgage marketplace, and the Zillow Offers home-buying business. Shares fell during the quarter in concert with the broader rotation out of technology-based stocks despite the company’s continued inflection in mortgages revenue, strong profitability in its core business, and a positive real estate outlook as Zillow builds out its iBuying ecosystem. In our view, Zillow is a leader in the large online real estate advertising market with substantial upside from mortgages and Offers, and we remain investors.”

8. Teladoc Health, Inc. (NYSE:TDOC)

Number of Hedge Fund Holders: 40

52-Week High: $308.00

Real-Time Share Price as of December 7: $99.40

Percentage Loss in Share Price Year-to-Date: 50.46%

Teladoc Health, Inc. (NYSE:TDOC) is a virtual healthcare company. Securities filings show that ARK Investment Management owned 16 million shares in Teladoc Health, Inc. (NYSE:TDOC) at the end of the third quarter of 2021 worth $2.6 billion, representing 4.95% of the portfolio.

Teladoc Health, Inc. (NYSE:TDOC) has failed to meet investor expectations over membership growth as the vaccine deployment lowers overall interest in the company. The guidance numbers of the firm for the rest of the fiscal year are largely in line with estimates.

At the end of the third quarter of 2021, 40 hedge funds in the database of Insider Monkey held stakes worth $2.8 billion in Teladoc Health, Inc. (NYSE:TDOC), down from 43 in the previous quarter worth $3.5 billion.

In its Q4 2020 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Teladoc Health, Inc. (NYSE:TDOC) was one of them. Here is what the fund said:

“Teladoc Health offers remote physician access to patients at home. After experiencing incredible levels of growth throughout the early stages of the pandemic as its unique value proposition rose to the forefront of the healthcare industry, the firm’s shares cooled off a bit as optimistic vaccine data slightly curtailed investor expectations for the firm’s future growth potential. We sold the stock.”

7. CRISPR Therapeutics AG (NASDAQ:CRSP)

Number of Hedge Fund Holders: 43

52-Week High: $220.20

Real-Time Share Price as of December 7: $78.58

Percentage Loss in Share Price Year-to-Date: 50.27%

CRISPR Therapeutics AG (NASDAQ:CRSP) is a gene editing company. ARK Investment Management owned 7.7 million shares in CRISPR Therapeutics AG (NASDAQ:CRSP) at the end of September 2021 worth $1.2 billion, representing 2.34% of the portfolio.

CRISPR Therapeutics AG (NASDAQ: CRSP) posted earnings for the third quarter on November 3, reporting earnings per share of -$1.67, beating estimates by $0.08. The revenue over the period was $0.8 million, missing estimates by $0.4 million.

At the end of the third quarter of 2021, 43 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in CRISPR Therapeutics AG (NASDAQ:CRSP), up from 34 in the preceding quarter worth $1.7 billion.

6. Skillz Inc. (NYSE:SKLZ)

Number of Hedge Fund Holders: 18

52-Week High: $46.30

Real-Time Share Price as of December 7: $9.68

Percentage Loss in Share Price Year-to-Date: 46.81%

Skillz Inc. (NYSE:SKLZ) is a technology company that operates from California. Latest securities filings reveal that ARK Investment Management owned 24 million shares in Skillz Inc. (NYSE:SKLZ) at the end of the third quarter of 2021 worth $534 million.

On November 4, investment advisory Canaccord lowered the price target on Skillz Inc. (NYSE:SKLZ) stock to $18 from $23 but kept a Buy rating, highlighting that investors were looking for improvement in user growth of the firm.

At the end of the third quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $432 million in Skillz Inc. (NYSE:SKLZ), down from 20 in the previous quarter worth $1.1 billion.

Just like Tesla, Inc. (NASDAQ:TSLA), Coinbase Global, Inc. (NASDAQ:COIN), Shopify Inc. (NYSE:SHOP), Twitter, Inc. (NYSE:TWTR), and Sea Limited (NYSE:SE), Skillz Inc. (NYSE:SKLZ) is one of the stocks feeling the heat of an economic slowdown.

Click to continue reading and see Cathie Wood’s ARK Portfolio: Top 5 Losers.

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Disclosure. None. Cathie Wood’s ARK Portfolio: Top 15 Losers is originally published on Insider Monkey.