Prominent investor and CEO of Ark Investment Management, Cathy Wood, changed her mind on a major electric car maker in trading on May 23.
Ark also bought and sold some familiar names. All valuations below are as of Monday’s close.
Ark Innovations ETF (ARKK) – Get the ARK Innovation ETF report Buy 15,858 electric car giant Tesla (TSLA) – Get Tesla Inc reportworth $10.2 million.
Wood has been selling Tesla stock for months, but she has said the sales reflect profit-taking and that she still believes in the Austin company.
Considering Tesla stock has fallen 36% year-to-date as of Monday, Wood may now see it as a good value. An Ark spokesman said the company does not comment on day-to-day trading activities.
Tesla is Ark Innovation’s second-largest holding, having been No. 1 before video streaming platform Roku (ROKU) – Get a Roku, Inc. A-level report Exceeded last week.
Ark Innovation’s third largest holding company is video conferencing service Zoom Video Communications (ZM) – Get Zoom Video Communications, Inc. Class A Report. The fund purchased 99,388 shares of the stock, valued at $8.9 million. Shares of Zoom Video surged after the company reported earnings.
Ark Fund snaps up 91,868 shares of Coinbase (coin) the largest cryptocurrency exchange in the United States, worth $6.1 million.
Ark Genomic Revolution ETF ARG snaps up 399,701 shares of Adaptive Biotechnologies (ADPT) – Get Adaptive Biotechnologies Corp. Reportworth $3.2 million.
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On the sell side, Ark Funds dumped 331,947 shares in Singapore-based digital entertainment company Sea (SE) – Report by Get Sea Ltd. (Singapore)worth $25.6 million.
In the end, Ark Gene reduced its holdings of 459,364 shares of Ionis Pharmaceuticals (IONS) – Get Ionis Pharmaceuticals, Inc. Reportworth $18.1 million.
Track the S&P 500
As the Ark Fund has tumbled in recent months, Wood has defended herself, noting that she has a five-year investment horizon.
The five-year track record of her flagship fund, the Ark Innovation ETF ARKK, could indeed give investors comfort until May 9. Until then, the fund’s five-year return has outpaced the S&P 500. But as of May 23, Ark Innovation’s five-year annualized return was 11%, compared with 12.63% for the S&P 500.
Ark Innovation has fallen 59% so far this year as Wood’s young, disruptive technology company has struggled. It is down 75% from its February 2021 peak. Raging inflation and soaring interest rates have helped put Fundamentals on tech stocks.
Still, Wood’s investors haven’t abandoned her. Ark Innovation had net inflows of $1.4 billion so far this year in the week ended May 16, The Wall Street Journal reported.
Morningstar’s point of view
Meanwhile, on March 29, Morningstar analyst Robby Greengold was critical of Ark Innovation.
“ARKK has shown little sign of improving its risk management or successfully navigating the challenging areas it explores,” he wrote.
Wood countered Greengold’s argument in an interview with Tifin’s Magnifi Media. “I know there are companies like this [Morningstar] Don’t understand what we’re doing,” she said.