Cathie Wood Makes Adjustments To Portfolio In August

Summary

  • The guru boosted five existing holdings.
  • Wood entered new positions in two SPACs.
  • She also trimmed her CRISPR Therapeutics stake.

Catherine Wood (TradesPortfolio) disclosed last week her firm, ARK Investment

PZN
Management, made a number of changes to its portfolio in August.

Wood, who is the founder, chief investment officer and CEO of the New York-based firm, has made a name for herself through investing in “disruptive innovation” stocks. Implementing an iterative process that combines top-down and bottom-up research, ARK Investment seeks to invest in companies that may benefit from cross-sector innovations like artificial intelligence, robotics, energy storage, DNA sequencing and blockchain technology.

According to GuruFocus Real-Time Picks, a Premium feature, the guru increased her holdings of five stocks, entered new positions in two special purpose acquisition companies and trimmed her CRISPR Therapeutics AG (CRSPFinancial) stake by 1.69% on Aug. 31.

Fate Therapeutics

Increasing the stake by 44.2%, the investor bought 3.3 million shares of Fate Therapeutics Inc. (FATEFinancial). The trade had an impact of 0.45% on the equity portfolio. The stock traded for an average price of $73.25 per share on the day of the transaction.

Wood now holds 10.8 million shares total, which represent 1.46% of the equity portfolio. According to GuruFocus, she has lost an estimated 7.47% on the investment so far.

The La Jolla, California-based biopharmaceutical company, which develops cellular immunotherapies to treat cancer patients, has a $6.29 billion market cap; its shares were trading around $66.06 on Friday with a price-book ratio of 8.29 and a price-sales ratio of 124.63.

The GF Value Line

VALU
suggests the stock is a possible value trap currently based on historical ratios, past performance and future earnings projections.

Of the gurus invested in Fate Therapeutics, Wood has the largest stake with 11.34% of outstanding shares. Steve Mandel (TradesPortfolio), Pioneer Investments, Robert Bruce (TradesPortfolio), Jim Simons (TradesPortfolio)’ Renaissance Technologies and Louis Moore Bacon (TradesPortfolio) also own the stock.

Quantum-Si

With an impact of 0.14% on the equity portfolio, Wood upped her Quantum-Si Inc. (QSIFinancial) holding by 188.1%, buying 7.6 million shares. Shares traded for an average price of $9.72 each on the day of the transaction.

She now holds 11.6 million shares total, accounting for 0.21% of the equity portfolio. According to GuruFocus, Wood has lost an estimated 8.18% on the investment so far.

Headquartered in Guilford, Connecticut, the biotech company, which is focused on developing a protein sequencing platform, has a market cap of $1.19 billion; its shares were trading around $8.70 on Monday with a price-book ratio of 2.36.

Since its market debut via SPAC merger on June 11, the stock has gained nearly 3%.

With an 8.55% stake, Wood is Quantum-Si’s largest guru shareholder. Larry Robbins (TradesPortfolio) also has a position in the stock.

Vuzix

Impacting the equity portfolio by 0.07%, the guru increased her Vuzix Corp

VUZI
. (VUZIFinancial) stake by 69.99%, or 3.02 million shares. On the day of the transaction, the stock traded for an average per-share price of $13.23.

Wood now holds 7.35 million shares total, which make up 0.18% of the equity portfolio. GuruFocus data shows she has lost an estimated 29.73% on the investment so far.

The Rochester, New York-based tech company, which develops and manufactures smart glasses and other augmented reality technologies, has a $742.66 million market cap; its shares were trading around $11.73 on Monday with a price-book ratio of 4.75 and a price-sales ratio of 40.84.

According to the GF Value Line, the stock is significantly overvalued currently.

Wood has the largest stake with 11.56% of outstanding shares. Other top guru shareholders include Simons’ firm, Lee Ainslie (TradesPortfolio) and Baillie Gifford (TradesPortfolio).

908 Devices

The investor boosted the 908 Devices Inc. (MASSFinancial) position by 12.85%, purchasing 315,404 shares. The transaction had an impact of 0.02% on the equity portfolio. On the day of the transaction, the stock traded for an average price of $36 per share.

She now holds 2.77 million shares total, giving it 0.19% space in the equity portfolio. According to GuruFocus, Wood has lost around 26.72% on the investment so far.

The Boston-based company, which manufactures medical devices for chemical and biomolecular analysis, has a market cap of $1 billion; its shares were trading around $36.81 on Monday with a price-book ratio of 7.12 and a price-sales ratio of 7.41.

Since its initial public offering on Dec. 18, 2020, the stock has tumbled nearly 25%.

Of the gurus invested in 908 Devices, Wood has the largest stake with 10.02% of outstanding shares. Frank Sands (TradesPortfolio), PRIMECAP Management (TradesPortfolio), Paul Tudor Jones (TradesPortfolio) and Baillie Gifford (TradesPortfolio) also own the stock.

Dynamics Special Purpose

With an impact of 0.01% on the equity portfolio, Wood increased the holding of Dynamics Special Purpose Corp. (DYNSFinancial) by 13.96%, or 291,191 shares. Shares traded for an average price of $9.92 each on the day of the transaction.

She now holds 2.37 million shares total, which gives the holding 0.04% space in the equity portfolio. The investor has gained around 0.27% on the investment over its short lifetime according to GuruFocus.

The blank check company headquartered in Redwood City, California, which is focused on finding a life sciences company to combine with, has a $293.18 million market cap; its shares were trading around $9.95 on Monday with a price-book ratio of 1.31.

Since its IPO in May, the stock has declined 0.3%.

Wood has the largest stake among the gurus with 8.07% of its outstanding shares. Jones is also invested in the SPAC.

Soaring Eagle Acquisition

The guru invested in 20.57 million shares of Soaring Eagle Acquisition Corp. (SRNGUFinancial), dedicating 0.40% of the equity portfolio to the stake. The stock traded for an average per-share price of $10.42 on the day of the transaction.

The New York-based SPAC, which announced in May it is merging with Ginkgo Bioworks Holdings Inc., has a market cap of $1.7 billion; its shares were trading around $9.78 on Monday with a price-sales ratio of 1.32.

Since its public debut in February, the stock has fallen 8.38%.

Chase Coleman (TradesPortfolio) and David Einhorn (TradesPortfolio) also have positions in the SPAC.

Khosla Ventures Acquisition

Wood picked up 4.28 million shares of Khosla Ventures Acquisition Co. II (KVSBFinancial), allocating 0.08% of the equity portfolio to the holding. On the day of the transaction, the stock traded for an average price of $9.93 per share.

The SPAC headquartered in Menlo Park,California, which announced in July it is combining with Nextdoor Inc., has a $554.05 million market cap; its shares were trading around $10.50 on Monday.

Since its IPO in March, the stock has risen 5%.

While Wood has the largest holding in Khosla Ventures with an 8.11% stake, Daniel Loeb (TradesPortfolio) also has a significant position.

CRISPR Therapeutics

Impacting the equity portfolio by -0.03%, Wood sold 131,769 shares of CRISPR Therapeutics (CRSPFinancial). Shares traded for an average price of $124.95 each on the day of the transaction.

The investor now holds 7.6 million shares total, which represent 1.78% of the equity portfolio. GuruFocus data shows she has gained around 75.06% on the investment, which was established in the second quarter of 2017.

The Swiss biotech company, which develops gene-based medicines for serious diseases using its proprietary platform, has a market cap of $9.06 billion; its shares were trading around $119.10 on Monday with a price-earnings ratio of 23.36, a price-book ratio of 3.47 and a price-sales ratio of 10.6.

Based on the GF Value Line, the stock appears to be a possible value trap currently, so investors should take a thorough look at the company before taking a position.

With a 10.03% stake, Wood is CRISPR’s largest guru shareholder. John Hussman (TradesPortfolio), Murray Stahl (TradesPortfolio), Pioneer Investments and Mario Gabelli (TradesPortfolio) also own the stock.

Portfolio composition and performance

Over 30% of the guru’s $50.33 billion equity portfolio, which was composed of 284 stocks as of the end of the second quarter, is invested in the health care sector, followed by slightly smaller exposures to the technology and communication services spaces.

As of June 30, Wood’s top five holdings were Tesla Inc.

TSLA
(TSLAFinancial), Teladoc Health Inc

TDOC
. (TDOCFinancial), Roku Inc. (ROKUFinancial), Square Inc.

SQ
(SQFinancial) and Shopify Inc.

SHOP
(SHOPFinancial)

The flagship ARK Innovation Exchange-Traded Fund (ARKKFinancial) returned 152.52% in 2020, decimating the S&P 500’s 18.4% return.

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Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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