Cathie Wood goes on a buying spree buying 4 million dollars worth of mega-cap technology stock.

Is Cathie Wood buying mega-caps stocks even when they are rising to try and stabilize her funds, which consist of mostly more risky, smaller stocks? 

Some believe this to be the case. 

Many investors and analysts are at odds over how they view Cathie Wood as a money manager.

Her fans think she is a technological genius able to see value where others fail to. 

But her critics think she is just a mediocre money manager.

Many investors and analysts are at odds over how they view Cathie Wood as a money manager

WEALTH TRAINING COMPANY

One thing is for sure, Cathie Wood is one of the best-known money managers, after Warren Buffett. 

Cathie Wood’s call to fame came following an impressive 153% return in 2020 and lucid presentations of her investment strategy in frequent media appearances.

Cathie Wood’s long-term performance points to a mediocre money manager

Cathie Wood’s flagship Ark Innovation ETF  (ARKK), with $5.5 billion in assets, produced annualized returns of 31% for the last 12 months, -26% for the past three years and positive 3% for five years. 

Meanwhile, the S&P 500 index, over a similar period, posted positive annualized returns of 41% for one year, 10% for three years, and 16% for five years.

Meanwhile, the S&P 500 index, over a similar period, posted positive annualized returns of 41% for one year, 10% for three years, and 16% for five years

RAY DALIO

Cathie Wood goes on a buying spree

Following her investment strategy to purchase emerging-company stocks in the high-tech categories of artificial intelligence, blockchain, DNA sequencing, energy storage, and robotics. 

Cathie Wood believes these are gaming-changing companies.

These stocks tend to be volatile, which explains why her fund is also volatile. 

Top investor David Loeb, chief executive of Third Point criticized Cathie Wood’s investing strategy.  

“Anyone teaching a value investing class or one on investment psychology should use this memo as a treatise to study the mindset of stonk hodlers,” he wrote. Stonk hodlers is slang for investors who hold (hodl) onto stocks (stonks) too long.

“Note the disparaging comments on luddites who look at archaic measures of value, like cash flow, as short-term traders,” Loeb wrote. 

Her most significant transaction was the purchase of 170,649 shares of Tempus AI Inc (NYSE: TEM), amounting to a substantial investment of $8,307,193” – Wealth Training Company

Ignoring her critics, Cathie Wood goes on a buying spree 

On Oct. 12, 2024, Cathie added 20,883 shares of Amazon.com Inc (AMZN) to the ARK Autonomous Technology & Robotics ETF ARKQ ETF. On Oct. 8, 2024, Ark Innovation ETF purchased 76,505 shares of Amazon, valued at $14 million. Amazon shares are off 2.2% in the past month.

Her most significant transaction was the purchase of 170,649 shares of Tempus AI Inc (NYSE: TEM), amounting to a substantial investment of $8,307,193.

Cathie Wood goes on a buying spree, but did she recently sell stocks?

Indeed, ARK divested a considerable portion of its holdings in Robinhood Markets Inc (NASDAQ:HOOD), selling 210,483 shares with a total value of $5,676,726. This sale was distributed between the ARKK and ARKW ETFs, with the majority offloaded from the ARKK portfolio. The sell-off of Robinhood stock is part of a broader trend, as ARK has been reducing its position in the company recently.

ARK reduced its stake in Moderna Inc (NASDAQ: MRNA) by 157,421 shares, resulting in an $8,469,249 reduction in ARK exposure to the biotechnology firm.