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Cathie Wood’s Ark Innovation ETF has made a notable move by selling Roku Inc., which had recently become its largest holding, marking the first time since August that the fund has divested from the streaming-video platform company. The sale of 171,268 Roku shares occurred on Monday, a significant departure from Ark Investment Management LLC’s previous purchases of Roku shares in October.
This decision to part ways with Roku came on the heels of the stock’s impressive 42% surge over two sessions at the end of the previous week. The surge was attributed to Roku’s better-than-expected third-quarter results and a positive outlook provided by the company. Consequently, Roku’s stock surpassed Coinbase Global Inc., a cryptocurrency exchange operator, and Tesla Inc., a prominent electric vehicle manufacturer, to become the top holding in Ark Innovation ETF. Despite these developments, Roku’s shares experienced a 1.7% decline on Monday.
As of September, Ark ranks as the second-largest shareholder in Roku, with an 8.35% stake in the company, according to data compiled by Bloomberg.
Ark Innovation ETF, Cathie Wood’s flagship fund, has demonstrated a 27% increase in value this year, in contrast to the Nasdaq 100 Index’s 39% gain and the S&P 500 Index’s 14% advance. It is noteworthy that the Ark Innovation ETF had experienced a 67% decline in value the previous year.
Cathie Wood’s decision to sell Roku amidst its stock’s recent surge reflects the dynamic nature of Ark Investment Management’s investment strategies and the fund’s efforts to capitalize on emerging opportunities.
