Cathie Wood Watch: Ark Sells Major Japanese Stock

Wood’s flagship Ark Innovation ETF has dropped 37% over the last 12 months, but has rebounded 21% so far this year.

Cathie Wood’s trading activity Tuesday included selling shares of a major Japanese construction-equipment maker.

The chief executive of Ark Investment Management also repeated several familiar trades. All the valuations below are as of Tuesday’s close.

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Ark Autonomous Technology & Robotics ETF  (ARKQ) – Get Free Report sold 29,447 shares of the Japanese company, Komatsu  (KMTUY) , valued at $696,000.

Komatsu is the second-largest construction equipment manufacturer in the world by revenue, after Caterpillar. It has a “leading position in the global construction machinery space,” according to Morningstar analyst Ken Foong.

Komatsu shares have climbed 4% in the last 12 months and 13% year to date. Wood has been selling them intermittently since July. But they are still the ninth biggest holding in the Ark Autonomous Tech fund.

Also Tuesday, Ark funds dumped 63,368 shares of DraftKings  (DKNG) – Get Free Report, the online sports gambling platform, valued at $1.2 million.

DraftKings stock has gained 10% in the past year and 63% year to date, amid strength in the sports-gambling market. DraftKings is the 11th biggest holding in Wood’s flagship Ark Innovation ETF  (ARKK) – Get Free Report.

Ark Trades Unity Software, Exact Sciences

Ark funds purchased 65,019 shares of Unity Software  (U) – Get Free Report, valued at $2 million. The company provides software for creating interactive 3D content. Its customers include video-game and architecture companies. Unity’s revenue soared 25% last year, but its net loss widened.

Unity’s stock has dropped 69% over the last year, but has firmed 1% year to date. It’s the 12^th biggest holding in Wood’s flagship Ark Innovation ETF.

Finally, Ark funds shed 37,166 shares of Exact Sciences  (EXAS) – Get Free Report, valued at $2.5 million. The company is a medical diagnostics provider famous for its Cologuard at-home colon cancer test.

The stock has ascended 31% thus far in 2023, buoyed by strong earnings, but has eased 2% over the last 12 months.

Ark has unloaded more than 3 million shares of Exact Sciences since Jan. 1. But it’s still the sixth biggest holding in Ark Innovation ETF.

Wood’s Lagging Returns

Meanwhile, Wood’s performance hasn’t exactly lit the investment world on fire over the past year, as her young technology stocks have slumped. Ark Innovation has descended 37% during that period and 76% from its February 2021 peak.

Nonetheless, the fund has bounced back 21% so far this year, as tech stocks have rebounded in general.

Mama Cathie, as Wood is known to her fans, defends her strategy by noting that she has a five-year investment horizon. But the five-year annualized return of $7.4 billion-asset Ark Innovation was only 0.6% through April 11, compared with 11.17% for the S&P 500.

The fund’s performance also doesn’t come close to Wood’s goal for annualized returns of 15% over five-year periods.

Ark Innovation suffered a net investment outflow of $128 million during the five days through April 11, but enjoyed an inflow of $765 million over the last year, according to ETF research firm VettaFi.

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