Kathy Wood, CEO of ARK Invest.
Patrick T. Fallon/AFP/Getty Images
Kathy Wood is taking advantage of the latest fall in stocks. On Tuesday, a terrible day for the Nasdaq Composite, Wood’s ARK Innovation exchange-traded fund rallied shares of Tesla, Roku, Zoom Video Communications, and others.
On the day the Nasdaq fell 2.3% and the ARK Innovation ETF (ticker: ARKK) fell 7%, Wood replaced about 0.7% of his fund. It was a good time.
She doubled down on many of her biggest positions, adding about $58 million worth of Zoom (ZM), Tesla (TSLA), Roku (ROKU), Block (SQ), Coinbase (COIN), and Twilio (TWLO). They are six of the top 10 holdings in ARK Innovation Fund.
It was a good time. Tesla stock was up 5.4% on Wednesday, while Zoom jumped 8.9%, Roku jumped 6.8%, Block was up 2.4%, Coinbase was up 9.3% and Twilio was up 4.9%.
The purchase was funded by selling Spotify Technology (SPOT) worth approximately $50 million. It is the 12th largest holding in the fund.
The largest purchases were Roku stock worth approximately $18 million and the acquisitions of Tesla and Block for $14 million.
Following the changes, the largest holding is in the Zoom Video Communications Fund, which represents about 9.1% of the ETF’s $8.8 billion. 2 slot at 8.3%, while Roku is in third place at 7.8%.
It was last week that Tesla lost the top spot to Roku. The change was due to market momentum: When Roku took the top spot, its shares fell about 17% over the past month, while Tesla’s shares were down about 31%.
ARK Innovation has had a tough year. It is almost twice as volatile than the Nasdaq, rising more in good times and falling faster when things get ugly.
Coming to Wednesday’s trading, ARK Innovation was down about 59% this year. The top 10 holdings in the fund are down about 55% on average. The Nasdaq is down 28%, while the S&P 500 is down 17%. The Dow Jones Industrial Average is down about 12 percent.
Wood isn’t changing its strategy and is adding to its best ideas despite the downdraft.
Write to Al Root at [email protected]