Since May 23, “Sister Wood” Cathie Wood’s Ark Fund ARK has bought more than 55,000 Tesla shares. This is an important change in ARK’s position in Tesla. Previously, “Sister Wood” reduced its Tesla holdings for at least four consecutive quarters. As of the end of March, ARK’s Tesla shares were 1.59 million shares, compared with 1.59 million shares a year ago. 5.79 million shares.
The three funds under “Sister Wood” have all recently made purchases on Tesla, including the flagship fund ARKK, ARK Autonomous Technology and Robotics ETF (ARK Autonomous Technology Robotics), and ARK Next Generation Internet ETF (Ark Next Generation Internet ETF). ).
“Sister Wood” shot Tesla again at a time when Tesla is no longer the largest position in her flagship fund. Since 2017, Tesla, which has been the number one holding in the “Wooden Sister” ARKK fund most days, was beaten by Roku in May for the first time in about four-and-a-half years.
Tesla’s stock price hit a record high of $1,243 in November last year, and then fluctuated and declined. After Musk announced the acquisition of Twitter, it started an accelerated decline and fell to a multi-month low of $620 on May 24. The previous all-time high was cut in half. Tesla shares are currently up about 20% from their May lows.
Tesla is “Miss Wood”‘s favorite stock, and she has made huge profits in the stock. “Sister Wood” said last year that Tesla’s stock price is expected to reach $3,000 by 2025, but due to new expectations for Tesla’s future robot taxi business and capital efficiency, the company updated this year share price target. ARK believes that in a best-case scenario, Tesla shares could reach $5,800 by 2026; in a worst-case scenario, shares could hit $2,900.
Since last year, U.S. stock growth stocks have been hit as the Federal Reserve has continued to escalate its monetary tightening policy. The holdings of “Sister Wood” are very hurt, and Ark Investment is facing continuous and substantial asset shrinkage. This year alone, all nine of its Ark ETFs have posted double-digit losses. For the flagship fund ARKK, its low point in May this year has fallen to near the point at the height of the outbreak of the new crown in 2020, which is about 78% lower than the ETF’s record high in 2021, a staggering decline.
However, since mid-May, ARKK has risen about 17%, outperforming the market and being considered a bellwether for a rebound in U.S. stocks. However, it remains to be seen whether this rally can be sustained. On the one hand, the valuation of ARKK’s holdings is still high, and on the other hand, the pace of Fed rate hikes has not stopped.
ARK’s daily trade updates show only proactive decisions by the management team and do not include new or redemption trades caused by investor liquidity. Sister Mu has repeatedly emphasized that ARK’s investment period is at least 5 years, and the volatility of its stock selection is also to be expected.
edit/phoebe
This article is reprinted from: https://news.futunn.com/post/16274307?src=3&report_type=market&report_id=207698&futusource=news_headline_list
This site is for inclusion only, and the copyright belongs to the original author.