Kathy Wood Watch: Ark buys Roblox and Roku, sells Spotify

Major investor Cathy Wood traded familiar names to buy shares of an online videogame platform and sell to an e-commerce company on June 7.

All ratings below are as of the end of Tuesday.

Arch Funds bought 422,638 shares of videogame platform Roblox (rblx) – Receive a Roblox Corporation Class A report worth $13.3 million. The stock is down 67% to date.

Arch Innovation ETF (arkk) — Get the ARK Innovation ETF Report, snatched up 58,844 shares of Roku (stop) – a video-streaming service Roku Inc. valued at $5.5 million. get report. The stock is down 56 per cent this year.

The Ark Genomic Revolution ETF (ARKG) — Get the ARK Genomic Revolution ETF Report Stripped of 129,800 Shares of Burning Rock Biotech (bnr) – Get the Burning Rock Biotech Ltd report valued at $279,070. The stock is down 76% year to date.

Arch Fund bought 99,132 shares of UiPath (way) – UiPath Inc., a robotics-software company valued at $2 million. Get Class A reports. The stock is down 50 per cent this year.

On the sell side, Ark Fund unloaded 324,672 shares of music-and-podcast platform Spotify Technology (place) – Get a Spotify Technology SA report worth $35.6 million. Wood continued to drop shares of the company, which has seen its stock fall 51% to date.

loyal following

Wood has developed a loyal following among retail investors. And many of them aren’t worried about the poor performance of its fund — at least its flagship, Arch Innovation.

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Ark’s roster of nine exchange-traded funds fell 48% in 2022 to $15.3 billion in assets from June 1, according to Bloomberg. This is the biggest drop among the 25 largest US ETF issuers.

Asset shrinkage has largely stemmed from the fund’s performance. The Arch Fund has an overall net inflow of $167 million so far this year.

Certainly, more than 100% of that total comes from Wood’s flagship Arc Innovation ETF (arkk) – Get the ARK Innovation ETF Report. It achieved a net inflow of $1.24 billion in the six months to June 3, according to ETF research firm, Waitafi.

This means that other funds are likely to have combined outflows of more than $1 billion. In any case, at least in Ark Innovation, Wood, whose fans have come to call her Mamma Cathy, hasn’t lost her following.

S&P 500. leaving behind

As Arch Innovation and other Wood funds have declined in recent months, it has defended itself noting that it has an investment horizon of five years.

And Arch Innovation’s five-year track record may really put investors to rest as of May 9. The fund’s five-year returns far outperformed the S&P 500. But Arc Innovation’s five-year annualized return totaled 10.42% as of June 6, behind the S&P 500’s 13.34% return.

Arch Innovation is down 51% so far this year, as Wood’s tech companies hit the skids. And it is down 71% from its February 2021 peak. Rising inflation and rising interest rates have helped keep the kibosh on tech stocks.

“majority of [fund managers] Bloomberg Intelligence ETF analyst Athanasios Sorophagis told his company’s news service that if their performance had been similar, they might have fallen, but Cathy and Ark would have had a strong following.

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