Ark Invest, the technology-focused investment management company, has made significant changes to its portfolio in recent weeks. The firm has reduced its position in Tesla, while simultaneously increasing its investments in cryptocurrency-related stocks such as Coinbase and Robinhood.
Ark Invest’s private equity funds, including the Ark Innovation ETF and the Ark Next Generation Internet ETF, sold nearly $16 million USD worth of Tesla stock in the past week. While the firm remains heavily invested in Tesla, this move reflects a cooling sentiment towards the tech stock. After experiencing a significant rally of around 140% year-to-date, institutional investors, including Barclays and Morgan Stanley analysts, have expressed a more cautious outlook on Tesla’s near-term prospects.
In addition to reducing its exposure to Tesla, Ark Invest has also sold off other blue-chip tech stocks such as Shopify and DraftKings. These divestments indicate a broader shift in the firm’s investment strategy as the tech stock rally dissipates.
However, Ark Invest continues to show strong support for the cryptocurrency sector. The firm holds significant stakes in American crypto companies and has a substantial investment in the Grayscale Bitcoin Trust through its ARKW fund. Notably, Ark Invest is the fourth-largest shareholder in Coinbase, the prominent crypto exchange. Despite recent challenges faced by Coinbase due to a lawsuit from the US Securities and Exchange Commission (SEC), Ark Invest increased its holdings by acquiring an additional 419,324 shares during a dip in Coinbase’s stock price.
Furthermore, Ark Invest’s ETFs purchased over a million shares of Robinhood, the popular stock and crypto trading platform, valued at $15.39 million USD. This move suggests greater confidence in the growth potential of financial technology (FinTech) investments compared to the wider tech sector. Robinhood, which recently announced its acquisition of the credit card platform X1, aims to expand its services beyond trading by offering customers access to credit.
Overall, Ark Invest’s recent portfolio adjustments reflect a shift away from certain tech stocks like Tesla and towards increased investments in the cryptocurrency and FinTech sectors, demonstrating the firm’s evolving investment strategy.
