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Cathie Wood’s ARK sold Tesla and bought Nvidia shares in three of its exchange-traded funds on Thursday.
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Cathy Wood looks used
Nvidia
‘c
a hard day to buy more shares in the graphics chip giant. She sold some of it
Tesla
pledge to purchase of
Nvidia
shares.
Nvidia
(ticker: NVDA ) shares fell 7.7% on Thursday after the company disclosed new licensing requirements to sell advanced semiconductors to China imposed by the US government.
Nvidia said up to $400 million in third-quarter sales were at risk. Wall Street is forecasting $5.9 billion in sales for the third quarter. However, the impact on sales was not the main reason for the stock’s decline. The new requirements are just another example of rising tensions between the US and China.
Wood, however, doesn’t seem too worried. The
ARK Innovation Exchange Traded Fund
( ARKK ) bought nearly $32 million in Nvidia stock on Thursday. The fund also added about $9 million combined
Exact Sciences
(EXAS),
Ginkgo Bioworks
(DNA) and
Teladoc
(TDOC).
Wood financed the sales primarily with
Tesla
(TSLA), selling about $32 million worth of stock. The ARK Innovation Fund also sold about $9 million worth
Compugen
(CGEN) and
It means health
(SGFY).
Similar deals were made in
ARK Autonomous Technology and Robotics
ETF (ARKQ) and
ARK Next Generation Internet ETF
(ARKW).
ARK was not immediately available to comment on the reason for the purchases and sales and whether the similar size of the Tesla and Nvidia deals was a coincidence.
For the flagship innovation fund, the 115,168 Tesla shares sold represented about 4% of Tesla’s total shares held. Tesla should still be the largest position in the ARK Innovation ETF after the sale.
The Nvidia purchase represents a more than 30% increase in the Innovation fund’s holdings. That’s a big increase, but Nvidia should still be outside the top 20 holdings after the purchase.
The ARK Innovation ETF tends to focus on the highest growth stocks in any given sector. Growth stocks have had a tough year given rising interest rates. Through Thursday, the innovation fund had fallen about 56% this year, while
has decreased by about 25%.
Tesla shares were the relative outperformers for the fund. Shares are down about 21% in 2022. Shares of Nvidia, on the other hand, are down about 53%.
Write to Al Root at allen.root@dowjones.com