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Cathie Wood’s Flagship Fund Dumps Almost Every Zillow Share -Breaking

by Mike Robinson

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© Reuters Cathie Wood’s Flagship Fund Dumps Almost Every Zillow Share

(Bloomberg) — The scale of Cathie Wood’s dramatic cull of her big stake in Zillow Group (NASDAQ:) is now clear, two weeks after she bought an initial dip in the beleaguered real estate company.

The ARK Innovation exchange-traded fund (NYSE:), Wood’s main product, held fewer than 1,000 shares of Zillow at the close on Wednesday worth just $50,000, according to data compiled by Bloomberg. It owned over $600,000,000 worth of Zillow shares earlier this month.

It’s a similar story for the ARK Next Generation Internet ETF (NYSE:), which is down to about 11,200 shares of the Seattle-based property firm from about 1.4 million earlier this year. 

Wood and Ark Investment Management’s rapid unwind illustrates just how rapidly Wood’s views have changed about Zillow. Wood is a well-known money manager who sticks with her bets no matter what.

Zillow’s other funds are held by the ARK Fintech Investment ETF (NYSE :), with around 1.4 Million shares. This is down from over 2,000,000.

Zillow shares fell by 40% after it announced that Zillow Offers would be shutting down. This AI-powered home-flipping company will also close its workforce. Wood purchased the initial 10% plunge that followed the announcement. However, the company made a sudden u-turn. 

“In ARK’s view, this news is the result of execution issues associated with Zillow’s AI pricing algorithms despite its access to ample data, calling into question the high balance sheet risk necessary to enable the scaling of iBuying business models,” Ark said later that week in its regular commentary on its biggest moving shares.

A spokesperson for the firm didn’t respond to a request for comment regarding its reduced stake in the company. 

After a stellar 2020, Ark’s performance this year has been more mixed. The flagship fund ARKK lost 6.2% while ARKW returned 5.5%, and ARKF was up 4%. 

©2021 Bloomberg L.P.

 

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