By Claire Ballentine
(Bloomberg) – Cathie Wood saw a buying opportunity in Twitter Inc.’s worst week since October.
Her firm, Ark Investment Management, scooped up about 1.3 million shares of the social media network worth $71m on Friday as the stock plunged 15%, according to an email on the firm’s trading activity. That slide came after Twitter reported disappointing first-quarter sales, in contrast to the stronger-than-expected results from other big tech companies, including Facebook and Alphabet.
Ark’s actively managed exchange-traded funds have suffered as investors have shifted out of growth stocks as the nation rebounds, which will benefit companies whose businesses are more closely tied to swings in the economy. Her $23bn flagship ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) – the two funds that bought Twitter shares – are down 3.5% and up just 1.5% this year, respectively, after posting triple-digit returns in 2020.
But Wood is known for doubling down on her strategies during selloffs, especially when automaker Tesla plunges. She’s repeatedly said that despite the broader rotation out of high-growth companies and into value stocks, her team maintains their conviction in innovative technologies and has a five-year time horizon.
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