Cathie Wood’s Ark Buys the DIp in Zillow -Breaking
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(Bloomberg) — Cathie Wood’s flagship exchange-traded fund pounced on a huge slump in Zillow Group (NASDAQ:) Inc. to add more shares of the embattled real estate company.
The ARK Innovation ETF (NYSE:) bought 288,813 shares of the property firm on Tuesday, according to the daily trading update from Wood’s Ark Investment Management. Zillow fell more than 10% after it pulled the plug on its tech powered home-flipping business.
Ark’s purchases were worth around $25 million, based on the closing price.
Zillow lost again Wednesday morning in the early trading session. It stated that the company, based in Seattle, will take writedowns up to $569 million and cut 25% of its staff as it abandons the algorithm-driven business.
Wood is well-known for her willingness to take a risk in high conviction bets. Wood and her company often stress they have at most a five year investment horizon and recognize that disruptive companies are frequently volatile.
ARKK lost about 1% last year after achieving a return of 153%. Its largest holding, Tesla (NASDAQ) Inc., has soared but the fund is being dragged down a bit by Zillow and other top picks. Roku Inc. Zoom Video Communications Inc.
Read more: Misfired Ark Wagers Overshadow Tesla’s 45% Surge This Year
Bloomberg Data shows that the $21.8billion ARKK has approximately 7.1million shares of Zillow, worth more than $600m. Wood also owns stakes via the $3.4 billion ARK Fintech Innovation ETF (ARKF) and the $5.6 billion ARK Next Generation Internet ETF (ARKW), making her firm Zillow’s fifth-largest shareholder.
Ark’s daily trading updates show only the active decisions of its management team. They do not reflect redemption or creation activity, which is what investor flows are. For that reason, the firm’s exact trading activity may vary.
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