Hotshot investor Cathie Wood, chief executive of Ark Investment Management, on Tuesday was an active buyer and seller, particularly in the biotechnology sector.
All the valuations below are as of Tuesday’s close.
Ark Autonomous Technology & Robotics ETF (ARKQ) bought 337,200 shares of smart-glasses maker Vuzix (VUZI), valued at $1.5 million. The stock dropped in early trading on Wednesday. After the closing bell on Tuesday, the company reported for the first quarter.
Ark funds purchased 419,575 shares of Velo3D (VLD) , a provider of metal 3D printing solutions, valued at $1.1 million.
Ark Genomic Revolution ETF (ARKG) snagged 72,037 shares of Adaptive Biotechnologies (ADPT), valued at $520,828.
On the selling side, Ark Genomic unloaded 631,449 shares of Burning Rock Biotech (BNR) , valued at $2.8 million.
Ark Next Generation Internet (ARKW) dumped 200,000 shares of Nano Dimension (NNDM), an electronics provider, valued at $494,000.
Ark Genomic sold 175,285 shares of Editas Medicine (EDIT), a biotechnology company, valued at $2 million.
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 her flagship fund Ark Innovation ETF (ARKK) could indeed give investors comfort, at least until Monday. 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 11.19% through May 10, compared with 12.77% for the S&P 500.
Ark Innovation shares have slumped 57% so far this year as Wood’s young and disruptive technology companies have hit the skids. And it’s down 74% from its February 2021 peak. Raging inflation and soaring interest rates have sharply hit tech stocks.
Still, Wood’s investors aren’t deserting her. Ark Innovation has enjoyed net inflows so far this year, taking in $41 million on Friday, Bloomberg reports.
Morningstar’s View
Meanwhile, on March 29, Morningstar analyst Robby Greengold issued a scathing critique of Ark Innovation.
“ARKK shows few signs of improving its risk management or ability to successfully navigate the challenging territory it explores,” he wrote.
“Since its meteoric rise in 2020, the strategy has been one of the worst-performing U.S.-sold funds.… Wood’s reliance on her instincts to construct the portfolio is a liability.”
Wood countered Greengold’s points in a recent interview with Magnifi Media by Tifin. “I do know there are companies like that one [Morningstar] that do not understand what we're doing,” she said.
“We do not fit into their style boxes. And I think style boxes will become a thing of the past, as technology blurs the lines between and among sectors.”
