Cathie Woods ARK ETFs have made some recent trades amongst the market volatility. Some of the most notable position entries and exists are in Spotify (SPOT), Ginkgo Bioworks (DNA), Nvidia (NVDA), and Teladoc (TDOC). Also of importance is the ARKK fund position in Roku (ROKU) where the ETF continues to add to it’s ever-losing position. Here’s a look at the ROKU price chart (gold line) versus the amount of shares owned in the ARKK ETF (purple line), thanks to a website that tracks and displays the data Cathies ARK Tracker. As share price declined the fund has continued to increase the amount of shares they own. In fact, since February, 2022, they’ve nearly doubled their position size.
ARKK – ROKU Holdings
This is all comes with recent scrutiny Cathie Woods’ has been receiving since her funds are down roughly 50% YTD. While they continue to buy the dip in names like ROKU, and DNA, they’ve almost completely sold out of positions in Spotify and Palantir. Check the charts.
ARKK – SPOT Holdings
So who will be right? At this point the finance industry has been flipped upside down and it seems to be Cathie Woods versus the world in a battle of “I told you so’s”. Cathie has always said her investment horizon is always in the 5 to 10 years timeframe, whereas most investment critics only see what’s in front of them right now. It’s well known the funds, that focus on growth stocks and innovation, will have large swings to both the upside and down. In 2020 she went from zero to hero with her performance based solely around Tesla (TSLA) stock, but the tables have turned in 2022 where many of her funds have just experienced their worst performing month to date.
The dramatic changes in some of the names mentioned above may be alarming as investors have to ask “what changed” with her thesis in those companies from 6 months ago until now. For reference, here’s a look at the ARK funds top 10 holdings across each of the ETFs.
#1. Tesla (TSLA)
#2. Zoom Video (ZM)
#3. Roku (ROKU)
#4. Block (SQ)
#5. Exact Sciences (EXAS)
#6. Teladoc (TDOC)**
#7. UIPath (PATH)
#8. Coinbase (COIN)
#9. Twilio (TWLO)
#10. Crispr Therapeutics (CRSP)
** Important to note that TDOC was once the #2 holding across all the funds, but after it’s recent 50% drop in share price the holdings value has taken a hit.
However, regardless of the ARKK and other ARK ETFs sluggish performance, many investors remain confident in Wood. For many of the names that have seen large drops in share price, Cathie has been out-spoken on her unconditional faith in her stock picks and that many of them are reaching “deep value” territory. She may be right, but again, the market can be risky and remain uncertain for longer than one would think.
