Cathie Wood's Ark Outshines S&P 500, Nasdaq In H1: Here Are The Major Trades It Made

Cathie Wood's Ark Investment Management has regained momentum this year as its actively-managed exchange-traded funds capitalize on the tech rally. 

Core Scorecard: Ark Innovation ETF ARKK, the firm’s flagship fund, has surged approximately 35% in the first half of the year, marking a strong comeback from a 67% plunge in 2022. In comparison, the S&P 500 has rallied 14%, the Nasdaq Composite has advanced roughly 29.5%, and the Nasdaq 100 has seen a jump of 36.6%.

ARKK’s performance is aligned with its investment strategy, as it invests at least 65% of its assets in domestic and foreign equities of companies that are working on disruptive innovation, with a particular emphasis on tech stocks. 

ARKK's top five holdings include:

1. Tesla, Inc. TSLA
2. Roku, Inc. ROKU
3. Zoom Video Communications, Inc. ZM
4. Coinbase Global, Inc. COIN
5. Block, Inc. SQ

Key Stock Trades For H1 (as of June 23, 2023)

Tesla Tally: While Ark alternated buying and selling Tesla stock, it bought into the stock during its challenging period early in the year. Ark bought 1.193 million Tesla shares in the first half of the year while selling 804,199 shares. Ark has a 2027 price target of $2,000 for Tesla, with much of the optimism premised on the Elon Musk-led company's yet-to-be-launched Robotaxi service.

See Also: Everything You Need To Know About Tesla Stock

Video Binge: Zoom Video Communications, Inc. ZM was among the shares that Wood continued to accumulate without affecting any sales. Ark has bought 409,993 Zoom shares so far in the first half of the year. 

AI Accumulation: Wood also increased her firm’s position in AI stock UiPath, Inc. PATH, acquiring 6.08 million shares. Additionally, Ark added 548,011 shares of Teradyne, Inc. TER, another AI play. Roblox Corp. RBLX saw Ark buy 1.3 million shares of the gaming software company. 

Chip Churn: Ark decreased its exposure to Nvidia Corp. NVDA, selling 218,641 shares and buying 12,039 shares in late February. However, three of Ark’s funds collectively still own 246,308 Nvidia shares. 

Ark resumed dealing with Taiwan Semiconductor Manufacturing Company Limited TSM after a two-year hiatus, purchasing 112,159 shares in June. The firm also bought 232,561 shares of Advanced Micro Devices, Inc. AMD. 

Crypto Confidence: Despite negative headlines in the crypto space — driven by the shuttering of FTX and the collapse of crypto-friendly bank Silvergate — Ark showed faith in cryptocurrency exchange Coinbase Global, Inc. COIN by purchasing 3.34 million shares and only selling 160,887 shares in one session. 

Robinhood Markets, Inc. HOOD also found favor with Ark, as the firm bought 3.98 million shares. 

Even as Jack Dorsey-led Block, Inc. SQ found itself in the eye of a storm after a short-seller report, Ark buttressed the stock by accumulating 2.1 million shares. The firm sold only 25,914 Block shares in the first half.

Out Of Favor: Ark reduced its holdings of health diagnostics tool maker Exact Sciences, Inc. EXAS, Canadian e-commerce retailer Shopify, Inc. SHOP, sports betting company DraftKings, Inc. DKNG, and Surface Oncology, Inc. SURF throughout the first half of the year.

 

How Other Ark ETFs Fared:

• Ark Autonomous Technology & Robotics ETF ARKQ: +32.6%
• Ark Next Generation Internet ETF ARKW: +49.8%
• Ark Fintech Innovation ETF ARKF: +44.4%
• Ark Genomic Revolution ETF ARKG: +16.3%
• Ark Space Exploration & Innovation ETF ARKX: +17%
• The 3D Printing ETF PRNT: +10.9%
• Ark Israel Innovative Technology ETF IZRL: +6.5%

What's Next? Tech stocks are expected to see more momentum in the second half of 2023. Wedbush analyst Daniel Ives said in a recent note that he expects an incremental 12-15% rally for tech stocks in the second six-month period of the year.

With the Federal Reserve tightening likely ending this year and the economy stabilizing, along with cooling inflation, the tech industry could be on the mend after 2022's disappointing show. Ark and its disruptive innovation portfolio could be big beneficiaries in the bargain.

Read Next: Cathie Wood Onto ‘Next Thing’ In AI After ARK’s Nvidia Exit: What’s On Her Radar?