Cathie Wood’s Ark Invest recently purchased shares of pandemic darlings such as Roblox Corp, Roku Inc, and Zoom Video Communications, which have fallen out of favour this year.
The asset manager’s flagship ARK Innovation ETF has fallen 43 percent this year, trailing the S& P 500’s 7.7 percent drop, as the threat of aggressive US policy tightening crushed the fund’s hyper-growth businesses.
ARK purchased 100,642 shares of Shopify Inc, 329,073 shares of Zoom, 739,082 shares of game site Roblox, and 575,648 shares of streaming device maker Roku this week.
Wood’s purchasing binge came after Netflix Inc’s startling subscriber loss caused a selloff in equities that prospered during COVID-19 lockdowns.
This week, the asset management sold more than 500,000 shares of Snap Inc ahead of the company’s earnings report. In premarket trading on Friday, the Snapchat owner fell nearly 2% after warning that inflation could harm revenue growth in the upcoming quarter.
Wood repeated her optimistic opinion on the fund’s largest holding, Tesla Inc., last week. The fund’s stake in Tesla is worth $969 million, or 10% of the fund’s weight.
The stock of the electric-car manufacturer is the only one of the fund’s top ten holdings that has increased in value during the last year. The other nine, which include Roku, Zoom, and Teladoc Health, have dropped between 22% and 62%.
Tesla’s stock has risen around 35% in the last year, and it jumped another 3% on Thursday when its earnings were above forecasts.
