Ark Investment Management CEO and prominent investor Cathie Wood bought shares in a maker of medical imaging equipment on Wednesday, along with some familiar names.
All valuations below are as of Wednesday’s close.
Ark Genome Revolution ETF (ARKG) – Get the ARK Genome Revolution ETF report Purchased 227,499 shares of Butterfly Network (BFLY) – Get Butterfly Network Inc. Class A Report, manufacturer of medical imaging equipment, valued at $768,947. The stock is down 49% so far this year.
Ark Innovations ETF (ARKK) – Get the ARK Innovation ETF report Acquired 240,963 shares of Coinbase Global (COIN) – Get the Coinbase Global Inc report, the largest cryptocurrency exchange in the country. The stock is down 79% year to date.
Clearly, Wood still believes in cryptocurrencies, even after the recent downturn.
“We think bitcoin is just getting started,” Wood told CNBC in an April interview. Institutions are only just starting to catch up with individuals in their use of bitcoin, she said. Wood is sticking to her January prediction that Bitcoin will top $1 million by 2030.
Block and Shopify purchases
Back at Wednesday’s event, Ark Innovation snapped up 129,448 shares of financial services firm Block (SQ) – Get Block Inc. Grade A Report, worth $8.4 million. The stock is down 58% so far this year.
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Ark Innovation snaps up 223,067 shares of e-commerce company Shopify (SHOP) – Get Shopify Inc. Class A Subsidiary Report, worth $7.4 million. The stock is down 75% so far this year.
Ark Innovation Acquires 268,695 Tucson Shares (TSP) – Get TuSimple Holdings Inc. Report, a self-driving truck technology company valued at $2.1 million. The stock has plunged 77% so far this year.
In the end, Ark Innovation acquired 153,981 shares of Unity Software (U) – Get Unity Software Inc. report, a video game software company valued at $6.6 million. The stock is down 70% so far this year.
Track the S&P 500
Meanwhile, as the Ark Fund has plummeted in recent months, Wood has defended herself, pointing to a five-year horizon for her investment.
The five-year track record of Wood’s flagship Ark Innovation could indeed comfort investors until May 9. Before that, the fund’s five-year return had outperformed the S&P 500. But Ark Innovation’s five-year annualized return as of July 6 was 10.81%, below the S&P 500’s 11.77% return, according to Morningstar.
Ark Innovation is down 52% so far this year as Wood’s tech company has struggled. It is down 71% from its February 2021 peak. Raging inflation and soaring interest rates have helped put Fundamentals on tech stocks.
Clearly, many of Wood’s investors aren’t too concerned about underperformance. Ark Innovation had a net inflow of $1.4 billion in the six months ended July 5, according to ETF research firm VettaFi. To be sure, the fund had an outflow of $34.08 million last month.
“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.”