Cathie Wood Watch: Buys Nvidia, Output Platform; Sells DraftKings

Ark Innovation ETF has fallen 49% this year. Asset manager Cathie Wood just added a bunch of shares of graphics-chip specialist Nvidia.

Cathie Wood, chief executive of Ark Investment Management, bought and sold familiar stocks Monday, including a sports gambling company and a top semiconductor maker.

All valuations below are as of Monday’s close.

Ark funds purchased 366,982 shares of Nvidia  (NVDA) – Get NVIDIA Corporation Report, the graphics-chip maker, valued at $65.3 million. Nvidia shares dropped 6% Monday, after its earnings report and have slid 40% year to date.

Ark funds snagged 210,213 shares of Teladoc  (TDOC) – Get Teladoc Health Inc. Report, an online health-care service, valued at $8.1 million. The stock has lost 59% this year and is the ninth biggest holding in Wood’s flagship Ark Innovation ETF  (ARKK) – Get ARK Innovation ETF Report.

Twilio, Markforged Buys

Ark funds snatched 245,910 shares of Twilio  (TWLO) – Get Twilio Inc. Class A Report, a communications software company, valued at $21.3 million. The stock has shed 67% year to date.

And Ark funds snapped up 70,154 shares of Markforged  (MKFG)  valued at $193,625. 

The Watertown, Mass., company produces what it calls the Digital Forge, a manufacturing platform that connects software, 3D printers and materials to enable engineers and designers “to go from design to fully functional industrial parts more efficiently.”

The stock has slumped 49% so far this year. And in trading through Monday the stock is off 74% from its 52-week high, set almost exactly a year ago.

On the selling side, Ark Innovation unloaded 852,851 shares of DraftKings  (DKNG) – Get DraftKings Inc. Report, the online sports gambling company, valued at $15.7 million. The stock climbed 3% Monday on strong earnings. It has descended 34% year to date.

Finally, Ark Innovation dumped 235,489 shares of Block  (SQ) – Get Block Inc. Class A Report, a financial services company, valued at $4.3 million. The stock has slipped 33% so far this year. It’s Ark Innovation’s fourth biggest holding.

Trailing the S&P 500

As Ark funds have tumbled in recent months, Wood has defended her strategy by noting that she has a five-year investment horizon.

The fund’s five-year return beat that of the S&P 500 until May 9. The five-year annualized return of Ark Innovation totaled 12.14% through Aug. 8, closing the gap with the S&P 500’s 12.83% return.

Ark Innovation has fallen 49% so far this year, as Wood’s tech companies have slumped. And it’s down 69% from its February 2021 peak. Raging inflation and soaring interest rates have sharply hit tech stocks.

Many of Wood’s investors don’t appear too worried about the underperformance. Ark Innovation enjoyed a net inflow of $2 billion in the six months through Aug. 5, according to VettaFi, an ETF research firm.

“I think the inflows are happening because our clients have been diversifying away from broad-based benchmarks like the Nasdaq 100,” Wood said. “We are dedicated completely to disruptive innovation. Innovation solves problems.”

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