Cathie Wood, chief executive of Ark Investment Management, on Friday bulked up on one of her biggest holdings and sold three others.
All valuations are as of Friday’s close.
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Ark funds purchased 146,721 shares of Teladoc Health (TDOC), the phone/video health-care provider, valued at $3.9 million.
The company reported an revenue increased 11% in the first quarter from a year earlier. Its net loss was about flat at 42 cents a share.
Teladoc shares have dropped 21% over the past 12 months but are up 12% year to date. It’s the 10th largest holding in Wood’s flagship, Ark Innovation ETF (ARKK).
Also on Friday, Wood continued to unload shares of e-commerce host Shopify (SHOP). Ark funds dumped 259,442 shares, valued at $12.6 million. That adds up to more than $101 million in sales since April 20. But Shopify is still the eighth biggest holding in Ark Innovation.
The company’s fourth-quarter revenue surged 26%, as merchants continued to grow their online-sales offerings. But Shopify’s net loss widened by 68%. Its stock has climbed 38% year to date and 12% over the past 12 months.
Wood Sells Exact Sciences and DraftKings
Ark Genomic Revolution ETF (ARKG) jettisoned 77,196 shares of Exact Sciences (EXAS), valued at $4.9 million. The company is a medical diagnostics provider famous for its Cologuard at-home colon cancer test. The stock has ascended 27% thus far in 2023, buoyed by strong earnings, and 10% over the past 12 months.
Ark has sold more than 4 million shares of Exact Sciences since Jan. 1. But it’s still the biggest holding in Ark Genomic Revolution ETF.
Finally, Ark Next Generation Internet ETF (ARKW) sold 79,229 shares of online sports gambling platform DraftKings (DKNG), valued at $1.7 million.
DraftKings stock has nearly doubled (up 97%) year to date and is up 64% in the past year amid strength in the sports-gambling market. It’s the eighth biggest holding in Ark Next Generation.
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 29% during that period and 78% from its February 2021 peak.
Nonetheless, the fund has bounced back 14% 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 0.42% through April 28, compared with positive 11.45% 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 saw a net investment outflow of $211 million during the five days through April 28 but a $181 million inflow over the past year, according to ETF research firm VettaFi.
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