Wednesday, May 18

Cathie Wood takes advantage of the fall of Tesla to buy

Star Wall Street manager Cathie Wood took advantage of a drop in Tesla shares after reporting results to buy, ending months of cutting holdings in her funds.

Wood bought 33,482 shares of Tesla on Thursday, worth nearly $28 million, based on the latest closing price of shares, on his ETF insignia ARK Innovation y los fondos ETF ARK Next Generation Internet.

Shares of Tesla fell 11 percent to $829.10, their lowest close in three months, after the company delayed the launch of new vehicles until next year due to supply chain disruptions that it said announced, could last until this year.

The fund began cutting its stake in the company in August 2021, according to data from Cathie’s Ark, a newsletter service and an online forum that tracks the asset manager.

Tesla reduces its weight in the ETF

Tesla remains ARK Innovation’s largest holding, but its weight in the ETF has shrunk to 8 percent from 11.2 percent at the end of October.

Wood said in September that he has a five-year price target of $3,000 for Tesla shares. The electric vehicle maker was down 1.5 percent at $817 in premarket trading on Friday, having lost nearly a third of its value since hitting an all-time high on Nov. 4.

The $11.48 billion ARK Innovation ETF was the best-performing US equity fund in 2020, but was among the worst performers of 2021 as rising interest rates hit high-growth, high-valuation companies in its portfolio.

The other major holdings in ARK Innovation, including the streaming company Roku, Teladoc Health and Zoom Video Communications, they have plummeted between 75 percent and 63 percent in the past 12 months.