NEW YORK (Businesshala) – Star stock picker and ARK Invest’s famed Tesla Inc bull Cathy Wood isn’t buying declining shares of the electric car maker, which has fallen nearly 13% this week, in anticipation of a sell-off by co-founder Elon Musk. .
Wood, whose ARK Innovation Fund outperformed all other U.S. equity funds last year thanks to his bets on high-growth companies that stalled during the early stages of the coronavirus pandemic, initially invested in Tesla as his principal fund. The stake was around 9.7%. of business on Wednesday, according to ARK’s website.
According to daily trading notifications compiled by Cathy’s Ark, the fund has been slashing its stake in the company since July, when the stock was trading at about $655. Here, a newsletter service and online forum that tracks asset managers.
Wood made little mention of Tesla’s recent stock volatility in Tuesday’s monthly webinar.
“The next big ‘ah moment’ for the market is when we see some success. [Tesla’s] Full self-driving autonomous front,” she said.
Tesla shares rebounded on Wednesday after a selloff earlier in the week when Musk said he would sell 10% of his stake in the company to pay taxes.
Wood said in September that he had a five-year price target of $3,000 for the stock, which was trading near $1,030 per share on Wednesday afternoon.
ARK Invest did not respond to a request for comment for this story.
According to Morningstar, ARK Innovation is down 3.1% for the year, a performance that ranks it among the lowest of all US mid-cap growth funds. It is one of the top performing funds in its category over the last five years, with annualized returns of 45.1%.