Cathie Wood Watch: Ark Dives Back in to Tesla Shares

Wood’s flagship Ark Innovation ETF has dropped 36% over the past year, but has rebounded 26% so far this year.

Famed money manager Cathie Wood, chief executive of Ark Investment Management, was at it again Wednesday, buying and selling some of her big-name stocks.

The most notable trade was her first purchase of Tesla  (TSLA) – Get Free Report stock since Jan. 23. Ark funds snagged 69,329 shares of the electric-vehicle titan, valued at $12.6 million. Tesla is by far the biggest holding in Wood’s flagship Ark Innovation ETF  (ARKK) – Get Free Report.

DON’T MISS: Cathie Wood’s Theory Behind Her Firm’s Tesla Investment

For years, Wood has loudly sung the praise of Tesla amid her enthusiasm for the EV market. The stock could hit $1,700 in the next five years, Wood said in January

It recently traded at $182 and has soared 48% year to date. To be sure, it has lost 36% over the past year.

Wood Buys Robinhood

In other buying Wednesday Ark Next Generation Internet ETF  (ARKW) – Get Free Report snatched 268,086 shares of online securities brokerage Robinhood Markets  (HOOD) – Get Free Report, valued at $2.6 million as of that day’s close. Robinhood is the 13th biggest holding in Ark Next Generation, moving up a place Wednesday.

The stock has slid 22% over the past year amid muted stock trading from individuals as the equity market dropped. But Robinhood shares have rebounded 19% year to date, helped by rising interest income and the overall market recovery.

Robinhood puts some of its customers’ uninvested cash into bank accounts to earn interest revenue. And the Federal Reserve has pushed interest rates sharply higher over the past year, leading to higher deposit rates.

Wood Sells Exact Sciences and DraftKings

On the selling side, Ark funds dumped 205,825 shares of Exact Sciences  (EXAS) – Get Free Report Wednesday, valued at $13.4 million as of that day’s close. The company is a medical diagnostics provider famous for its Cologuard at-home colon cancer test.

Exact Sciences stock has climbed 37% thus far in 2023, buoyed by strong earnings and the overall market’s rally. The shares have slipped 5% over the past year.

Wednesday represented the sixth day in a row that Wood has pared her Exact Sciences position. Ark has shed more than 3 million Exact Sciences shares this year. But the company is still the fourth biggest holding in Ark Innovation.

Finally Ark Next Generation Internet unloaded 160,923 shares of online sports gambling platform DraftKings  (DKNG) – Get Free Report, valued at $3.2 million as of Wednesday’s close.

The stock has gained 12% in the past year and 71% year to date amid strength in the sports-gambling market. DraftKings is the ninth biggest holding in Ark Next Generation Internet.

Wood’s Lagging Returns

Meanwhile, Wood’s performance hasn’t exactly lit the investment world on fire over the past year, as her young technology stocks have slumped. Ark Innovation has descended 36% during that period and 75% from its February 2021 peak.

Still, the fund has bounced back 26% so far this year, as tech stocks have rebounded in general.

Mama Cathie, as Wood is known to her fans, defends her strategy by noting that she has a five-year investment horizon. But the five-year annualized return of the $7.3-billion-asset Ark Innovation was negative 1.18% through March 8, compared with positive 9.74% for the S&P 500.

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