Prominent investor Cathie Wood, CEO of Ark Investment Management, bought and sold some familiar tech companies on July 13.
All valuations below are as of Wednesday’s close.
Ark Fund buys 1,041,831 Unity Software shares (U) – Get Unity Software Inc. reportvideo game software developer, worth $34.2 million.
On July 13, Unity said it had agreed to buy IronSource for $4.4 billion in stock.
Unity is a video game software development company. It said yesterday it would acquire IronSource (Yes) , an Israeli developer that enables mobile content creators to extend apps. Unity shares fell 17% at the close yesterday. It trades at a sixth of the 52-week high of $210 set in November.
Ark Genome Revolution ETF (ARKG) – Get the ARK Genome Revolution ETF report Acquired 110,668 shares of Butterfly Network (BFLY) – Get Butterfly Network Inc. Class A Report, a manufacturer of medical imaging equipment, valued at $409,472. The stock has fallen 46% so far this year.
Ark Sales: 3D Printers, Cell Biology
On the sell side, Ark Funds sold 3,474,626 Stratasys shares (SSYS) – Get Stratasys Ltd. Reports, a maker of 3D printers worth $61.5 million. The stock has fallen 28% so far this year.
Ark Innovations ETF (ARKK) – Get the ARK Innovation ETF report Sale of 239,129 Berkeley Lights shares (BLI) – Get Berkeley Lights Inc. Report, a digital cell biology company valued at $1.2 million. The stock has plunged 74% so far this year.
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Ark Fund sells 218,048 shares of Compugen (CGEN) – Get Compugen Ltd. report, an Israeli biotech company valued at $433,916. The stock is down 55% so far this year.
Ark Innovation sells 163,896 shares of Beam Therapeutics (BEAM) – Get Beam Therapeutics Inc. Report, a biotech company valued at $9.1 million. The stock has fallen 29% so far this year.
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As the Ark Fund has fallen sharply in recent months, she defended her strategy, noting her investment horizon is five years.
As of May 9, the fund’s five-year return topped the S&P 500. But Ark’s five-year annualized return as of July 13 totaled 10.18%, lagging the S&P 500’s return of 11.17%, according to Morningstar.
Ark Innovation is down 54% so far this year as Wood’s tech company has struggled. It is down 73% from its February 2021 peak. Raging inflation and soaring interest rates have helped put Kibosh on tech stocks.
Ark Innovation still had a net inflow of $1.77 billion in the six months ended July 12, according to ETF research firm VettaFi.
“I think inflows are happening because our clients have been moving away from broad-based benchmarks like the Nasdaq 100,” Wood said. “We are fully committed to disruptive innovation. Innovation solves problems.”
Meanwhile, she recently reiterated her view that the economy is suffering from deflation, not inflation. Wood said the economy has entered a recession. The Fed has made a mistake in continuing to raise rates, she said in an Ark webinar on July 12.