Wood’s flagship, Ark Innovation, is down 45% in the past 12 months, but has rallied 26% year-to-date.
Noted asset manager Cathie Wood, CEO of Ark Investment Management, continued buying and selling big-name stocks on February 10.
Ark exchange-traded funds bought 162,325 shares of embattled Coinbase Global (CURRENCY) – Get a free reportthe largest cryptocurrency exchange in the US. That stash was valued at $9.3 million.
Wood is likely to see Coinbase as a bargain amid the 72% drop in shares over the past year caused by turmoil in the digital currency market. To be sure, the stock is up 57% year-to-date.
He has been buying Coinbase for months. It ranks as the eighth largest holding in Wood’s flagship Ark Innovation ETF. (ARKK) – Get a free report.
Ark Fintech Innovation ETF (ARKF) – Get a free reportacquired 263,504 shares of online stock brokerage Robinhood Markets (HOOD) – Get a free reporton February 10, valued at $2.6 million at that day’s close.
The stock has lost 25% over the past year as financial markets struggled. But it has returned 23% to date. it’s the 18thhe further involvement in the flagship Ark Innovation.
Wood Pairs Exact Sciences, Nvidia Stock
Wood continued his recent sale of Exact Sciences (EXA) – Get a free reportFeb. 10. Ark’s funds dumped 115,345 shares of the company, valued at $7.4 million as of that day’s close. Exact Sciences is a medical diagnostic provider famous for its Cologuard home colon cancer test.
Wood is apparently trying to take advantage of the recent rebound in stocks. Exact Sciences shares have lost 19% over the past year but have more than doubled since Oct. 14, buoyed by strong earnings and a rally in tech stocks.
Wood has offloaded more than 2 million shares of Exact Sciences in the year. But the company is still the third-largest holding in the Ark Innovation ETF, behind No. 1 Tesla and Zoom Video Communications. Exact Sciences was No. 1 for part of January.
Another February 10 sale from Wood: Semiconductor titan Nvidia (NVDA) – Get a free report. Ark’s funds dumped 17,631 shares of the company, valued at $3.7 million.
Nvidia shares have fallen 12% over the past year but are up 91% since October 14, helped by the company’s strong fundamentals and an industry rebound. Wood also sold part of the shares earlier this year.
Drop of Wood returns
Meanwhile, Wood’s performance hasn’t exactly overwhelmed the investment world over the past year, as his young tech stocks have tumbled. Ark Innovation is down 45% over that period and 75% since its February 2021 peak.
That said, the fund has rallied 26% year to date, joining the rise in technology stocks.
Wood has defended his strategy by noting that he has an investment horizon of five years. But Ark Innovation’s five-year annualized return was just 1.69% through February 10, compared to 11.27% for the S&P 500.
The fund’s return is also nowhere near Wood’s target of 15% annualized returns over five-year periods.
Ark Innovation, with $7.4 billion in assets, saw a net investment outflow of $196 million over the past five days, according to ETF research firm VettaFi. But he has enjoyed an inflow of $1.34 billion over the past year.
