Famed money manager Cathie Wood, chief executive of Ark Investment Management, on Friday reversed field on Nvidia (NVDA), buying the semiconductor titan’s stock after selling it for months.
She also repeated the buying and selling of some major names that Ark has done in recent months.
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As for Nvidia, ARK Autonomous Technology & Robotics ETF (ARKQ) purchased 9,628 shares, valued at $2.2 million as of Friday’s close.
Nvidia shares have jumped 63% year to date amid strong earnings and a rebound in the chip sector. But the stock is still down 2% over the past year, held back by earlier weakness in the industry.
Ark funds purchased 150,192 shares of Coinbase Global (COIN), the largest U.S. cryptocurrency exchange Friday, valued at $8.8 million as of that day’s close.
Coinbase shares have tumbled 67% over the past year amid turmoil in the cryptocurrency market. But they have rebounded by the same percentage so far this year, helped by bitcoin’s ascent.
The company posted a $557 million loss in the fourth quarter. Coinbase is the seventh biggest holding in Ark’s flagship Ark Innovation ETF (ARKK).
Wood's Selling Moves
On the selling side, Ark Innovation pared 190,593 shares of online sports gambling platform DraftKings (DKNG), valued at $3.5 million as of Friday’s close.
The stock has lost 16% in the past year but has jumped 64% year to date amid strength in the sports-gambling market. DraftKings is the 11th biggest holding for Ark Innovation ETF.
Ark Innovation unloaded 185,330 shares of Exact Sciences (EXAS), valued at $11.1 million as of Friday’s close. The company is a medical diagnostics provider famous for its Cologuard at-home colon cancer test.
Exact Sciences shares have climbed 23% thus far in 2023, buoyed by strong earnings and the overall market rally.
That said, the stock has descended 22% over the past year. Wood has unloaded more than 2 million Exact Sciences shares this year. But the company is still the fourth biggest holding in Ark Innovation ETF.
Finally, ARK Next Generation Internet ETF (ARKW) shed 3,896 shares of Adobe (ADBE), which provides content creation software, including Photoshop. The stash was valued at $1.2 million as of Friday’s close.
Adobe shares fell 8% Friday, after Bloomberg reported that the government is forming an antitrust lawsuit to dash Adobe’s planned $20 billion acquisition of Figma, a smaller player in the industry. Adobe’s stock has dipped 4% so far this year and 30% over the past year.
Ark's Lagging Performance
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 45% during that period and 76% from its February 2021 peak.
Still, the fund has bounced back 24% so far this year, as tech stocks have rebounded in general.
Wood defends her strategy by noting that she has a five-year investment horizon. But the five-year annualized return of $7.3 billion Ark Innovation was negative 0.26% through Feb. 24, compared with 9.56% for the S&P 500.
