Cathie Wood
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Insiders (Still) Aren't Buying Cathie Wood’s Hype

By:Jeff Joseph

Cathie Wood, the 2022 Motley Fool Women's "Investor of the Year" at Ark Invest just sold some Nvidia and Tesla stock—does anyone care?

As Nvidia (NVDA) stock has been finding support at the $433 level, attempting to recapture its 50-day trendline, earlier this week it was reported that Cathie Wood's Ark Genomic Revolution ETF (ARKG) sold 8,983 shares of NVDA stock.

Then on Wednesday, Wood's Ark Invest firm offloaded Tesla (TLSA) stock worth over $25 million, as TSLA outperformed the S&P 500 index and surged past a significant threshold.

But, does anybody still care? 

The April 2022 issue of Luckbox magazine featured an article by Garrett Baldwin, Insiders Aren’t Buying ARK’s Hype which issued a stern warning to investors about Wood’s overhyped investment prowess.  

The ARK Innovation (ARKK) ETF, or exchange-traded fund, had lost more than 40% of its value since that story was published. As of Tuesday, Tesla continued to hold the largest position in ARKK, accounting for 11.04% of its portfolio.

Following Tesla, Zoom Video Communications (ZM) holds the second-largest position at 8.35%, followed by Roku (ROKU) at 8.07%, Coinbase Global (COIN) at 7.94%, and UiPath (PATH) at 7.03%. These stocks have all experienced weakness since September or even earlier, reflecting the broader struggles of the stock market.

On Sept. 28, Yahoo Finance published a story for Wood watchers, Too Cheap to Ignore: Cathie Wood Snaps Up These Two Stocks Under $5.  

Once again, Baldwin was not impressed. 

In the video, Baldwin takes Wood to task on this latest purchase of two “cheap stocks” and the one big mistake Wood continues to repeat. 

Baldwin’s analysis may be painful for ARK's faithful followers. Despite the fanfare and media attention, the ARK Innovation ETF has been underperforming its benchmark index for months. While Wood's disciples may dismiss this as a temporary blip, the fund’s investors are growing increasingly skeptical. After all, if ARK can't deliver on its promises during a bull market, what hope does it have when the tides inevitably turn? 

Garrett Baldwin is an economist, trader, journalist and the editor at large at Luckbox Magazine. Baldwin is also the author of Florida Republic Capital on Substack.

Jeff Joseph is the editorial director of Luckbox magazine.

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