It was a quick turnaround. After reducing its stake in Nvidia ahead of the graphics chip maker’s results last month, Cathie Wood’s ARK Invest already bought shares in three of the company’s funds.
The leading innovation fund ARK
made its first foray into the name with a $4 million purchase. Next Generation Internet ETF ARK
bought Nvidia worth $5 million.
It came on a day when Nvidia shares fell 8%, rocked by the revelation that tThe US will limit exports to China, which marked its fourth downgrade in guidance this year. Wood’s caution before the results was justifiedas this was the company’s third downgrade.
Nvidia shares have tumbled 53% this year.
The purchases were offset by nearly identical sales in each of Tesla’s funds
which is still the highest participation in all three.
ARK’s flagship innovation fund is down 56% this year. It also suffered outflows of $803 million in the past month, according to FactSet data, although it has brought in $982 million worth of inflows this year.