ARK Invest, led by star stock picker Cathie Wood, is known for its active trading strategies and concentrated bets on disruptive innovation stocks. Understanding ARK’s frequent trades provides insights into Wood’s investment philosophy and risk appetite. This analysis looks at ARK’s top stock buys and sells in 2022 to see what they reveal about the firm’s market outlook and conviction on holdings like Tesla, Zoom, Roku and Teladoc.
ARK trimmed its Tesla stake despite high conviction
ARK funds sold over $400 million worth of Tesla shares in 2022 even though Wood maintains extremely bullish targets on the stock. The trades suggest ARK took some profits after huge gains but still views Tesla as a long-term core holding.
Pandemic winners like Zoom saw large exits
ARK Invest dumped around 75% of its position in Zoom in 2022, taking advantage of the work-from-home stock’s pandemic gains. Similar sizable sales occurred in Teladoc and Roku, indicating ARK’s view that these pandemic plays have peaked.
ARK doubled down on beaten-down holdings like Coinbase
Despite the crypto downturn, ARK bought over $200 million in Coinbase stock in 2022. The contrarian trades show Wood’s comfort with doubling down on high-conviction names trading significantly off their highs.
Analyzing ARK Invest’s frequent trades provides color on Wood’s market outlook and level of conviction on holdings like Tesla, Zoom, Roku and Coinbase. The trades reveal a nuanced approach balancing taking profits and opportunistic buying.