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Cathie Wood, co-founder, CEO and investment manager of the ARK Invest family of exchange-traded funds, regularly announces her stock trades after each trading day.
Known for her significant returns in 2020, Wood has had uneven success in subsequent years, but in 2024 she has delivered another standout performance. This year’s challenges have not stopped her from continuously adjusting her growth stock portfolio.
Recently, Wood increased her holdings Adaptive biotechnologies (NASDAQ:ADPT), Intellia Therapeutica (NASDAQ:NTLA), and Shopify (NYSE: STORE). Here’s a summary of these stocks, down from 16% to 29% in 2024.
Shopify
One of Wood’s holdings, Shopify, was crucial to her successful year in 2024, but is currently experiencing a decline.
This year, the e-commerce platform’s shares are down 27% from their peak last year. A recent financial statement fell short of market expectations for future growth, resulting in a 19% decline in share value despite a 23% increase in revenue (29% without the divested logistics sector). Since then, analysts have lowered their price forecasts for Shopify.
Despite this, Shopify has continued to grow its market share and maintain high free cash flow margins. Analysts predict revenue growth of 21% this year and 20% in 2025, with substantial profitability growth expected. Wood and others, including Goldman Sachs, believe the current sell-off is an overreaction and see it as a buying opportunity.
Intellia Therapeutica
Despite recently beating earnings estimates, Intellia Therapeutics, another key holding in ARK’s portfolios, saw its shares decline 16% year-to-date. The company specializes in the development of CRISPR-based treatments, with one in the crucial third phase of clinical testing and another approaching that stage. Intellia’s significant cash reserves provide a solid foundation for its continued R&D. Wood’s investment reflects her confidence in gene editing technologies; ARK currently owns $49,253 worth of Intellia stock.
Adaptive biotechnologies
Wood also increased her role in genetic sequencing technology company Adaptive Biotechnologies. Although its share value is down 50% this year, Adaptive recently posted good financial results, including a higher revenue forecast for its minimal residual disease (MRD) business and reduced losses. However, the departure of the CFO has worsened investor sentiment. Despite this, Wood remains confident in the future of the company and ARK owns more than 7% of the shares.
These changes illustrate that Wood is strategically investing in high-potential growth companies, despite market volatility.
Protect your portfolio with some alternative income investments
There are growing concerns that a recession is near and that could be bad news for many stock portfolios. Some of the world’s largest investment firms are putting more of their capital into income-producing assets such as private credit, which has the potential to deliver positive returns as stock prices fall. Here are two of the most attractive options available to retail investors looking to do the same.
The Arrived private credit fund simplifies investing in short-term financing for real estate projects, guaranteeing attractive returns through quality residential real estate. With targeted annualized dividends of 7-9%, quarterly liquidity and a diversified pool of real estate-backed loans, this fund is an excellent addition to equity investments.
Click here for more information about the Arrivald Private Credit Fund.
Basecamp Alpine Notes from EquityMultiple offers another powerful short-term cash management tool, with a target APY of 9% over 3 months and a minimum investment of just $1,000. These notes offer high liquidity and attractive compound interest rates, making them an ideal choice for investors looking to build their income-generating portfolio. As a special offer, Basecamp Alpine Notes are exclusive to new investors on the EquityMultiple platform, giving new investors a unique opportunity to take advantage of these favorable terms.
Click here for more information about Basecamp Alpine Notes.
Cathie Wood from ARK Invest took a closer look at these 3 bargains: are they right for your portfolio? originally appeared on Benzinga.com
