Cathie Wood Watch: Ark Sells Spatial Data Company’s Stock

Wood also dumped a familiar biotechnology name, and bought two other stocks for the second day in a row.

Famed investor Cathie Wood sold shares of a spatial data company and a familiar biotechnology name June 22.

And for the second day in a row, she bought shares of an autonomous vehicle company and a digital-products maker.

All the valuations below are as of the June 22 close.

Ark Autonomous Technology & Robotics ETF  (ARKQ) – Get ARK Autonomous Technology & Robotics ETF Report dumped 490,185 shares of Matterport  (MTTR) , the spatial data company, valued at $2 million. Matterport focuses on digitization and datafication of the built world. Its stock has plunged 81% so far this year.

Ark Genomic Revolution ETF  (ARKG) – Get ARK Genomic Revolution ETF Report unloaded 1,039,018 shares of Burning Rock Biotech  (BNR) – Get Burning Rock Biotech Limited Report, valued at $2.2 million. The stock has dropped 75% year to date.

On the buying side, Ark Autonomous Technology & Robotics purchased 134,700 shares of Markforged  (MKFG) , a digital manufacturing platform, valued at $299,034. The stock has slumped 58% so far this year.

Ark Autonomous Technology & Robotics also snagged 40,806 shares of TuSimple  (TSP) – Get TuSimple Holdings Inc. Report, the autonomous vehicle company, valued at $329,712. The stock has dropped 76% year to date.

Trailing the S&P 500

As Ark funds have tumbled in recent months, Wood has defended herself by noting that she has a five-year investment horizon.

And the five-year track record of Wood’s flagship Ark Innovation ETF  (ARKK) – Get ARK Innovation ETF Report could indeed give investors comfort until May 9. The fund’s five-year return beat that of the S&P 500 until then. But the five-year annualized return of Ark Innovation totaled 8.11% through June 22, far behind the S&P 500’s 11.05% return.

Ark Innovation has sunk 56% so far this year, as Wood’s tech companies have hit the skids. And it’s down 74% from its February 2021 peak. Raging inflation and soaring interest rates have helped put the kibosh on tech stocks.

Wood’s investors are starting to cut bait just a bit. Ark Innovation suffered a net outflow of $4.2 million in the month through June 21, according to VettaFi, an ETF research firm. But the fund still had a $1.3 billion inflow for the six months through that date.

Deflation Risk

Meanwhile, Wood has said she sees deflation as a greater risk than inflation. Price gauges like the consumer price index (CPI) are lagging indicators, she said. The CPI soared 8.6% in the 12 months through May, a 40-year high.

Wood prefers indicators like the price of gold, which hasn’t moved a lot from a year ago, and the dollar, which has risen sharply.

Costs are dropping for her companies’ technologies too, such as artificial intelligence training, genomic sequencing, and battery prices for electric cars. Those technologies will have a huge impact on the economy, she said.

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