ARK’S Wood doesn’t appear to be buying down Tesla shares

NEW YORK, Nov. 10 (Reuters) – ARK Invest’s Cathie Wood, star stock picker and rated bull Tesla Inc (TSLA.O), does not appear to be buying the decline in the electric carmaker’s shares, which have fallen sharply. ‘about 13% this week in anticipation of the sale by co-founder Elon Musk.

Wood, whose ARK Innovation fund (ARKK.P) outperformed all other U.S. equity funds last year thanks to its bet on high-growth companies that recovered at the start of the coronavirus pandemic, holds a Its flagship fund’s approximately 9.7% stake in Tesla as of the start of trading on Wednesday, according to ARK’s website.

The fund has reduced its stake in the company since July, when the stock was trading at around $ 655, according to daily trade notifications compiled by Cathie’s Arch, a newsletter service and an online forum that tracks the asset manager.

Wood made little mention of the recent volatility in Tesla shares during a monthly webinar on Tuesday.

“The next big ‘Aha moment’ for the market is when we see some success on [Tesla’s] fully autonomous autonomous front, ”she said.

Tesla shares rebounded on Wednesday after a massive selloff earlier in the week when Musk announced he would sell 10% of his stake in the company in order to pay taxes. Read more

Wood said in September that she had a five-year price target of $ 3,000 for the stock, which was trading Wednesday afternoon at nearly $ 1,030 per share.

ARK Invest did not respond to a request for comment for this story.

ARK Innovation is down 3.1% for the year to date, a performance that places it the lowest among any US mid-cap growth fund, according to Morningstar. It has been among the best performing funds in its category over the past five years, with an annualized gain of 45.1% per year.

Reporting by David Randall in New York Editing by Matthew Lewis

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