As Tesla Tumbles, Cathie Wood Buys Even More
With the market lurching back and forth ominously, it’s latest slide the result of a crash in crypto names, investors are focused on how Cathie Wood’s ARK Invest – widely seen as one of the market’s weakest links – is enduring the volatility in markets. And so far, it doesn’t look like Wood is deviating from her prior strategy of buying Tesla, among other “speculative” names, on any and all dips.
Case in point: as Tesla swooned lower in its biggest drop since last March, Wood bought more Tesla – adding more than 47,000 shares, according to Bloomberg – despite Elon Musk’s recent disapproval of bitcoin mining processes and what appeared to be a giant short position taken via puts by Michael Burry, of The Big Short fame. Wood has also been a big advocate for crypto names like Coinbase, while continuing to advocate for a new $4,000 price target on Tesla shares.
It marks the first time Wood has dabbled back into Tesla since April. Tesla is down about 35% from its highs in January.
Earlier this week, Bloomberg reported that Wood had almost exited her stake in Apple completely, continuing her “strategy” of rolling out of liquid big tech names and into more speculative investments as the market falls. “Ark Fintech Innovation ETF, Wood’s only fund that holds a stake in Apple, sold 188,455 shares of the iPhone maker and now holds 2,702 shares,” Bloomberg reported on Tuesday.
Wood has also continued to buy Coinbase and ARK also added shares of Twitter during the social media’s site worst week since October.
James Pillow, managing director at Moors & Cabot Inc. told Bloomberg: “Wood is making her move once again when everyone else is looking elsewhere.”
We can’t help but ask: what “move” is that?
Earlier this week wrote days that Wood’s ARKK had fallen 35% off highs and that Wood’s firm was back under $40 billion in AUM. Days before that, we noted that Wood had admitted to having four of her ETFs seeded by Bill Hwang, most recently best known for his $80 billion levered blowup that created chaos among banks and drove the price of several equities down over 50% in a week’s time.
“Bill was very intrigued with the stocks we were interested in, he was just beginning to learn about them” she said at the time. When asked about whether or not she had spoken to Hwang after his blow up, Wood said: “I have not spoken to him. I send him a note after the unfortunate events we witnessed.”
When asked if Hwang still had a position in any ARK funds, Wood replied: “To be honest, I have no idea. I never asked him if he kept the money in. We’ve never had that conversation.”
Wed, 05/19/2021 – 11:35
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