Cathie Wood Adds UFC Parent Endeavor To ETF: What Investors Should Know

Thanks to daily trade notifications, investors can get an early look at which stocks are being added to the ETFs from Ark Funds, led by Cathie Wood. The last two trading days have shown accumulation of a new position.

What Happened: In each of the last two trading days, Ark Next Generation Internet ETF ARKW has added over 135,000 shares of Endeavor Group Holdings Inc EDR.

As of Wednesday, the ETF currently holds 317,247 shares of EDR valued at $9.5 million, representing 0.24% of the ETF.

The position in EDR significantly trails top five holdings like Tesla Inc TSLA, Grayscale Bitcoin Trust GBTC, Coinbase Global COIN, Twitter Inc TWTR and Roku Inc ROKU.

Ark has been known to slowly accumulate shares and build up large positions in stocks in the family of ETFs, which could be what is happening with EDR shares here.

Related Link: UFC, WME Parent Endeavor IPO: What Investors Need To Know 

Why It’s Important: Endeavor is the owner of UFC, Professional Bull Riding and Euroleague Basketball. The company additionally owns IMG and WME, two of the largest talent and representation management companies in the world. Endeavor also represents leagues like the NFL and NHL on rights deals.

The company reported the UFC having its best nine-month results ever through the third quarter. The company is also seeing a rebound in its other divisions, with touring events resuming.

Wood and Ark could be betting on continued growth for UFC and also the stock being a reopening play.

Price Action: EDR shares trade at $30.03, closing in on a new all-time high of $33.20. The stock had an IPO price of $24 in April 2021.

Related Link: MMA Fighter Elias Theodorou Talks Upcoming Fight, Engaging The Fanbase With NFTs