Cathie Wood had a rough year in 2021, and 2022 isn’t looking any better.However, the CEO, co-founder and chief investment officer of the Ark Invest family Exchange Traded Funds (ETFs) have hit the market hard in 2020. She has a great return seat as investors re-pivot to dynamic growth stocks.
I think some of her investments are ready to pay back.I love so much Deere (German -1.10%), king of the draft (DKNG 2.09%)and Grayscale Bitcoin Trust (GBTC 5.28%) Now. Let’s see why I believe these three very different companies in Wood’s portfolio can beat the market at this point.
The Cathie Wood ETF is full of next-generation and disruptive growth stocks. You wouldn’t expect the old-school industrial giant behind John Deere to be Ark Invest’s core holding company, but you can be sure Wood is grateful for the participation. Deere’s stock is down just 17% from its recent all-time high, while some of her shares are down more than 70%.
Deere doesn’t have to be a mediocre behemoth. Sure, it’s the company behind agricultural, commercial, and construction equipment, but the story goes way beyond that.The same 180-year-old company that makes tractors to help farms harvest seasonal harvests A leader in technology, automation and even artificial intelligence.
This is not your typical Wood inventory. It even pays a small dividend. However, the current climate is ripe for Deere. There is a world to feed and a development market to grow. Deere has also emerged as a potential value stock with some growth appeal. It trades at 16 times this year’s expected earnings, but analysts expect revenue to rise 20% this year.
king of the draft
Wood made a big bet on DraftKings, even if it looks a bit like a loser now. The online gambling and fantasy sports specialist, who has quadrupled in 2020, has recovered nearly all of those gains.
DraftKings isn’t going away anytime soon.income up 34% In the most recent quarter, it was slightly above Wall Street’s expectations. Its quarterly loss widened, but it was better than market expectations. DraftKings also raised its full-year revenue outlook and adjusted EBITDA.market no applause A “beating up” performance, but it does mean the company’s fundamentals are up, even if the stock price is down. Regulatory hurdles need to be cleared and acquisitions need to be digested, but our love for sports and confidence in sports-related betting has been reinforced during this pandemic. DraftKings fell, but that’s not the outlook the stock chart suggests should be done when evaluating today’s odds.
Grayscale Bitcoin Trust
Cryptocurrencies have been hit hard.The entire digital currency market has lost $1 trillion in value over the past month, which is a pretty big deal bitcoinof (Bitcoin 5.91%) Valuation fell to $560 million. Bitcoin’s 28% drop over the past month has actually fared better than the entire cryptocurrency market, and I think it will stay that way when bullish sentiment returns. There will be a flight to quality and Bitcoin will continue to be the leader.
Buying bitcoin outright has never been easier, but Wood has done it over the past few years by buying the Grayscale Bitcoin Trust. It is the largest exchange-traded trust that directly owns cryptocurrencies. Grayscale operates a range of trusts that operate as trusts in the current regulatory environment. Grayscale Bitcoin Trust manages $18.7 billion worth of refrigerated Bitcoin.
More like closed-end funds than traditional ETFs, these exchange-traded trusts sometimes trade at a significant premium or discount to their net asset value (NAV).this discount now Given investor sentiment towards cryptocurrencies, I have seen it. Grayscale Bitcoin Trust traded at $27.04 per share as of Wednesday’s close, but shares – $18.56 – traded at a 31% discount to NAV.
On the downside, the Grayscale Bitcoin Trust charges a hefty 2% annual management fee, which tapers off over the year in the form of bitcoins being transferred out to pay for the trust. However, at the current discount, you would have to hold it for over a decade before fees erode the value of the underlying Bitcoin.