(Bloomberg) — Cathie Wood stepped up shopping for of Robinhood Markets Inc. shares as the net dealer’s inventory dropped to a report low following earnings that fell wanting Wall Street expectations.
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Wood’s agency ARK Investment Management purchased almost 2.44 million Robinhood shares on Friday, probably the most since its inventory market debut in July, based on buying and selling knowledge from Ark compiled by Bloomberg. The shopping for got here on a day when the agency’s inventory at one level dropped under $10, earlier than staging a rebound in keeping with the broader U.S. market.
Robinhood nonetheless trades 67% under its preliminary public providing value and ranks among the many worst high-profile international inventory market debuts in the course of the pandemic, becoming a member of the likes of China’s Didi Global Inc. and London’s THG Plc.
Wood’s flagship ARK Innovation ETF purchased 1.95 million shares of Robinhood on Friday, whereas the ARK Next Generation Internet ETF and ARK Fintech Innovation ETF every purchased greater than 230,000 shares, based on the asset supervisor’s each day buying and selling updates.
Ark, which is already one of many agency’s high shareholders, has purchased its shares virtually each week since late October, when the inventory dropped under its IPO value of $38, based on knowledge compiled by Bloomberg.
Ark’s flagship fund has struggled after advancing almost 150% in 2020. As vaccines rolled out and economies reopened, traders dumped speculative tech shares and began shopping for names that may profit from a broader restoration, main ARKK to a 24% decline final 12 months.
The U.S. Federal Reserve’s pivot towards price hikes is exacerbating the ache this 12 months, with ARKK falling one other 27% up to now in 2022. Short curiosity as a share of shares excellent within the ETF has climbed to a report 11% earlier this month, based on knowledge from IHS Markit Ltd.
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Wood and her agency ceaselessly say that their funding horizon is at the very least 5 years, and acknowledge that the disruptive corporations they aim are sometimes unstable. Ark’s each day buying and selling updates present solely energetic choices by the administration crew and don’t embody creation or redemption exercise attributable to investor flows.
(Updates so as to add ARK Innovation ETF’s efficiency this 12 months beginning in sixth paragraph.)
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