Cathie Wood’s ARK investment funds are selling shares of both Tesla and Coinbase while buying more shares of Twilio. The funds sold $26.3 million worth of Coinbase stock and $13.1 million of Tesla stock. Yahoo Finance Reporter Jared Blikre breaks down the numbers.
Video Transcript
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Cathie Wood's ARK investment funds discarding more shares of Tesla and Coinbase, but still scooping up shares of Twilio. Yahoo Finance's Jared Blikre joins us now with the details. Jared.
JARED BLIKRE: Let's take a look at what she's selling here. Now, by the way, Cathie Wood's operates some very transparent funds in terms of disclosing on a daily basis what she's buying and selling. But the reason, we don't know that much is a black box.
But here's what we do know. Coinbase, there's been more selling overnight. Last Friday, all of her funds put together sold about $50 million worth, while another $26.3 million yesterday spread among her fintech innovation fund, the flagship ARK Innovation ETF. That's ARKK. Investors know that. And the Next Generation ETF as well.
Now, she's also selling Tesla, $13.1 million worth. That is over her Innovation ETF and the Next Generation Internet ETF as well.
But let's take a look at some of the charts here and just see what's going on. I told you we don't know exactly why she might be selling. Why she sold before, she said, sometimes the price goes far enough, fast enough that, well, she wants to take some of those profits. Sometimes she only-- she can only allocate a certain amount to any of these funds. And so by her disclosure document, she has to sell a little, if there's-- in other words, if it becomes too concentrated.
But here's coinbase. You can see Coinbase also up a significant amount. This is 212% year to date. And what she's selling or excuse me, what she's buying here is actually Meta.
Now, if you take a look at this chart, this is 160% year to date, far and above what these other two are doing, but she's adding to this position. Really interesting chart for me on Meta. I hadn't looked at this in a few weeks, but this is almost a perfect from the lower left to the upper right chart here with very low volatility, absent these few what look like earnings announcement days in there.
So let's take a look now at the performance of her basket of funds. These are all of her ETFs, have eight of them year to date. And the number one, not surprisingly, is centered around tech in the US. Here is a year to date chart. This is the Next Generation Internet ETF, really took off in June along with a lot of other things here. That's when it broke through these highs that we got earlier in the year. So that's up 76%.
The financial, the Fintech ETF also has a similar chart, up just a little bit less. And then you take a look at the Innovation Fund, the flagship fund, similar story there too. As I've been noting, June was kind of a bellwether-- there was a bellwether event at the beginning of the month, that was nonfarm payrolls changed the characteristic of the rally where we saw a lot of participation besides the mega caps that we'd seen so far.
We've seen a lot of other things get sucked up into the trade, into this bullishness. And arguably, Cathie Wood's funds are on the fringe. They're on the fringe of these investments. A lot of these names were heavily shorted. And it's because a lot of these names were just so battered and bruised last year that they have been the most ripe for short covering rallies.
So I think there is a little bit of all of that in what we're seeing here. Don't take too much in the daily sellings and buyings of these innovation funds. But you take a look at the net performance. It's undeniable that this is a bullish rally that we're in that is swept up finally the fringe elements. And that's really come to light over the last 4 to 6 weeks.
JULIE HYMAN: And just a quick note, though, when you look at ARKF, if you can call it up again and do a five-year chart.
JARED BLIKRE: Oh, you want the good one here. Relative performance, right?
JULIE HYMAN: Yeah.
JARED BLIKRE: It's still way down there. They're probably the lower-- the lowest decile. And that's what I'm talking about. These stocks that were beaten down the most, they're going to have the biggest flashiest rallies. But they're still, if a stock is down 90%, guess what? You got to climb up about 900% to get your money back. So it doesn't exactly work out sometimes the way investors hope.
JULIE HYMAN: Yeah. It's really fascinating because investors stuck with her on the way down, but there's some reports now that she has seen some outflows even as the performance has improved.
JARED BLIKRE: Well, that's part for the course. Retail tends to get it wrong. It's unfortunate, but it's a maxim. Retail tends to get it wrong.
JULIE HYMAN: Well, hopefully, they won't always. All right.
JARED BLIKRE: Not always. There's always the future to hope for, right?
JULIE HYMAN: Yes. Thank you.
