Cathie Wood Watch: Ark Buys Healthcare/Tech Stocks

Hotshot investor Cathie Wood, chief executive of Ark Investment Management, bought a drug data analytics stock and shares of a cancer-treatment developer Tuesday.

She also purchased and sold some familiar names. All the valuations below are as of Tuesday’s close.

Recursion Pharmaceuticals  (RXRX) – Get Recursion Pharmaceuticals Inc. Report is the drug data company. Ark Genomic Revolution ETF  (ARKG) – Get ARK Genomic Revolution ETF Report snagged 108,500 shares, valued at $960,225. The stock has slid 48% so far this year.

Surface Oncology  (SURF) – Get Surface Oncology Inc. Report is the cancer-treatment developer. Ark Genomic Revolution snatched 437,372 shares, valued at $769,775. The stock has plunged 61% year to date.

Ark funds snapped up 322,499 shares of Ginkgo Bioworks  (DNA) , a biotechnology company, valued at $870,747. The stock has tanked 65% so far this year.

Ark Genomic Revolution purchased 108,166 shares of Zymergen  (ZY) – Get Zymergen Inc. Report, a biotechnology company, valued at $147,106. The stock has cratered 79% year to date.

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On the selling side, Ark funds dumped 1,884,434 shares of Stratasys  (SSYS) – Get Stratasys Ltd. Report, a U.S.-Israeli 3D printer maker, valued at $35.8 million. The stock has slipped 27% so far this year.

And Ark Genomic Revolution ETF unloaded 164,632 shares of Ionis Pharmaceuticals  (IONS) – Get Ionis Pharmaceuticals Inc. Report, a biotech company, valued at $6.2 million. The stock has climbed 26% year to date.

Trailing the S&P 500

Meanwhile, as Ark funds have tumbled in recent months, Wood has defended herself by noting that she has a five-year investment horizon.

And the five-year track record of Wood’s flagship Ark Innovation ETF  (ARKK) – Get ARK Innovation ETF Report could indeed give investors comfort until May 9. The fund’s five-year return beat that of the S&P 500 until then. But the five-year annualized return of Ark Innovation totaled 10.86% through July 5, behind the S&P 500’s 11.49% return, according to Morningstar.

Ark Innovation has sunk 52% so far this year, as Wood’s tech companies have hit the skids. And it’s down 72% from its February 2021 peak. Raging inflation and soaring interest rates have helped put the kibosh on tech stocks.

Apparently many of Wood’s investors aren’t too worried about that underperformance. Ark Innovation enjoyed a net inflow of $1.45 billion in the six months through July 5, according to VettaFi, an ETF research firm. To be sure, the fund suffered an outflow of $38.19 million in the last month.

“I think the inflows are happening because our clients have been diversifying away from broad-based benchmarks like the Nasdaq 100,” Wood said. “We are dedicated completely to disruptive innovation. Innovation solves problems.”

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