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Cathie Wood’s Ark Invest ditched more Tesla to buy shares in virtual healthcare firm Teladoc

Cathie Wood.

Patrick T. Fallon/Getty Images

  • Three of Cathie Wood’s Ark funds sold Tesla shares worth about $4 million on Tuesday.
  • Her funds also bought shares in Teladoc worth about $3 million.
  • Ark’s funds have taken a hammering in December, but Wood has defended her beaten-down portfolio.
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Cathie Wood’s Ark Invest sold more Tesla stock and loaded up on virtual health company Teladoc on Tuesday, according to a daily trade notification.

The Ark Innovation ETF, Ark Autonomous Tech & Robotics ETF and the Ark Next Generation ETF sold a combined 20,446 shares in Tesla. At Tuesday’s closing price, those would be worth about $4.1 million.

Meanwhile, the Ark Next Generation ETF and the Fintech Innovation ETF snapped up 57,900 shares in Teladoc. At Tuesday’s closing price, these would be worth some $3 million.

Tesla was last trading 0.6% higher in Wednesday’s pre-market session at $1,095 per share, while Teladoc was trading 0.1% lower, at $91 per share.

Ark Invest’s ETFs haven’t had a great year, especially after taking a hammering in December. Wood’s expectations for a 20% gain in her flagship fund haven’t exactly panned out in 2021, with the Disruptive Innovation ETF down more than 20%, putting it on track for its worst year of performance since launching in 2014.

Last year, Ark’s Innovation ETF returned around 150%.

The change in tack this year is due in large part to the performance of many of the tech names that Wood’s firm invests in that began to buckle, as central banks signaled their intention to reduce stimulus in response to soaring inflation. Moreover, uncertainty over the impact of the Omicron variant has also been weighing on the market.

Still, Wood has defended her beaten-down portfolio and said Ark’s funds will quadruple in the next five years.

“What I like about this period is many people are saying those stocks were in a bubble and they deserve to correct. That tells me we are nowhere near a bubble,” the Ark Invest founder and CEO told CNBC in a recent interview.

“We have seen such a correction, primarily in innovation stocks as the market scaled to all-time highs, that based on our estimates, our 5-year compound annual rate of return expectation has gone from 15% at the peak in March, to nearly 40% today,” she added.

Read More: The founders of an Andreessen Horowitz-backed NFT fund that’s raising $100 million share their top 5 tips for building up a digital art portfolio that’s well-shielded from a potential ‘crypto winter’

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