Cathie Wood Watch: Ark Sells DraftKings, Buys Coinbase

Her flagship Ark Innovation ETF has lost 31% in the last 12 months, but has bounced back 11% so far this year.

Cathie Wood, chief executive of Ark Investment Management, traded three of her biggest names Tuesday, repeating moves from Monday.

All the valuations below are as of Tuesday’s close.

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Wood’s flagship Ark Innovation ETF  (ARKK) – Get Free Report sold 313,509 shares of online sports gambling platform DraftKings  (DKNG) – Get Free Report, valued at $6.9 million. The fund unloaded about the same amount in dollar terms Monday.

DraftKings stock has skyrocketed 92% year to date and 46% in the past 12 months amid strength in the sports-gambling market. It’s the 10th biggest holding in Ark Innovation, dropping two places Tuesday, behind Shopify and Teladoc.

Also Tuesday, Ark funds bought 147,317 shares of Coinbase Global  (COIN) – Get Free Report, the largest U.S. cryptocurrency exchange, valued at $7.6 million. That came after Monday’s purchase of $8.5 million.

Coinbase started a foreign exchange for cryptocurrency derivatives Tuesday, as the company is butting heads with U.S. regulators.

Coinbase stock has tumbled 60% over the past 12 months amid turmoil in the cryptocurrency market. But it has rebounded 37% this year, helped by bitcoin’s recovery. The company is Ark Innovation’s fourth biggest, rising a place Tuesday to pass Block.

Finally, Ark funds snapped up 110,316 shares of Teladoc Health  (TDOC) – Get Free Report, the phone/video healthcare provider, valued at $2.9 million. That followed Monday’s addition of $3.9 million.

The company reported an 11% revenue increase in the first quarter from a year earlier, and its net loss was little changed at 42 cents a share compared to 41.58 cents a year ago.

Teladoc shares have dropped 33% over the last 12 months, but are up 8% year to date. It’s the ninth largest holding in Ark Innovation.

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 31% during that period and 78% from its February 2021 peak.

Nonetheless, the fund has bounced back 11% 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 $6.7 billion-asset Ark Innovation was negative 1.22% through May 2, compared with positive 11.28% for the S&P 500.

The fund’s performance also doesn’t come close to Wood’s goal for annualized returns of 15% over five-year periods.

Ark Innovation suffered a net investment ouflow of $172 million during the five days through May 1, but enjoyed a $257 million inflow over the last year, according to ETF research firm VettaFi.

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