Renowned investor Cathie Wood, chief executive of Ark Investment Management, on Friday bought some of her old favorite stocks, including a laser communications company. She also sold an old favorite.
All the valuations listed below are as of Friday’s close.
Wood’s flagship Ark Innovation ETF (ARKK) purchased 434,167 of online securities brokerage Robinhood (HOOD), valued at $4.5 million. Ark Innovation snagged 17,385 shares of videoconferencing service Zoom Video Communications (ZM), valued at $1.7 million.
Ark funds bought 674,220 shares of robotics company UiPath (PATH), valued at $12.1 million.
Ark Genomic Revolution ETF (ARKG) snatched 1,300,840 shares of biotechnology company Ginkgo Bioworks (DNA) , valued at $4.4 million.
Laser Communications
And Ark Space Exploration & Innovation ETF (ARKX) snapped up 9,753 shares of German laser communications company Mynaric MYNA, valued at $100,456. The company produces optical communications terminals for air, space and mobile applications.
“Laser communication networks provide connectivity from the sky, allowing for ultra-high data rates and secure, long-distance data transmission between moving objects for wireless terrestrial, mobility, airborne- and space-based applications,” Mynaric says on its website.
On the sell side, Ark Innovation dumped 15,283 shares of audio-streaming service Spotify (SPOT), valued at $1.7 million.
Investors Remain Loyal
Ark Innovation ETF has slumped 45% this year, as Wood’s younger technology stocks have hit the skids. But many investors continue to believe in her.
The fund saw an inflow of $658 million this year through Thursday, including $59 million in the latest week, according to FactSet, as cited by The Wall Street Journal. Ark Innovation has total assets of $9.5 billion, according to Morningstar.
Wood says she targets five-year returns. And indeed Ark Innovation has outperformed the S&P 500 over the past five years -- posting an 18.8% annualized total return compared with 15%. But Ark Innovation has dropped more than 65% from its February 2020 high.
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. “Wood’s reliance on her instincts to construct the portfolio is a liability.”
Wood countered his 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.”
