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🤩 #CathieWood continues to make BIG trades inside the #ARKInvest flagship fund #ARKK, doubling down on one type of stock specifically. In each fund – from #ARKG to #ARKX – we can see big buys in different types of web technology companies. Let's see which ones @ARK Invest thinks are the best stocks to buy now.
Now that all of ARK Invest's trading data for July is in, I'd like to share a quick update of Cathie Wood's biggest buys and sells and which companies I'm going to research next as a result. Full disclosure. I'm an ARK Invest shareholder and I'll be talking about companies that I have huge positions in, like Tesla and Teladoc. I'm not a financial advisor, and everything I'm about to say about these stocks is for entertainment purposes only.
Are you not entertained? Are you not entertained?
The one thing I want to bring up before I dive into ARK Invest's trading data is the crackdown on Chinese tech companies that's been happening over the last month.
Regulators in Beijing unveiled sweeping policy changes to the technology sector and other industries like online education and property management. So the big question here is whether or not this is an opportunity to buy the dip. This quick Bloomberg clip is the best answer that I found so far.
Now you're down less than 1%. So there's a clear change. And it's not just an ARK innovation either. You've seen that in the ARK next generation internet down to 5.4%. That's lower than any month end based on our data since October 2014. So it's not all the funds. ARK fintech innovation stars around 18% of its assets in Chinese companies. Nonetheless, I mean, there is a clear trend: ARK Innovation had four companies that they were invested in. Two of them, they've completely sold out of the search service Baidu and also the streaming music service Tencent Music Entertainment, which leads to at this point KE Holdings, an online real estate broker and HUYA, video game streaming company.
And they've cut their estates in those two businesses by about three quarters from where they were just a few months ago. And what expects that the clients do? Well, hold on for a while.
Hey, Dave, question on that. How has it affected the ETF performance? Clearly, those stocks were down hard in the last three months. How is the performance doing now?
Well, backing away from them, you can argue, has paid off for Cathie Wood because you look at the ARK Innovation shares. I mean, they peek back in February. They were down more than 30% through mid-May, and since then they've managed to come back. Even as the Chinese companies listed in the US have kind of been suffering because of all the moves the government is made to kind of rein in the industry. So you put it all together and you've seen ARK Innovation recoup about half its to February to May loss at a time we've seen these Chinese companies just take hits here, basically.
Usually, Cathie Wood makes calls that are against the grain and buys the dip when this kind of news comes out. But this time she trimmed her Chinese Holdings by over 80% from February highs and by over 30% in the last month alone. ARK Invest has sold tons of shares in stocks like Huya, Ke Holdings, Tencent, Pinduoduo, Meituan, Baidu and Alibaba. So even though some of these great companies are looking cheap right now, I'm looking at this as a serious warning about how we should be pricing in these types of regulatory risks.
Make sure you're really thinking about future crackdowns by Chinese regulators and updating your investment thesis in these kinds of companies accordingly. Alright, onto the data. If you combine all of Cathie Wood's actively managed funds, here's what's at the top as of July 30. Tesla, ticker symbol TSLA, is leading the pack with well over $3 billion across ARKK, ARKW and ARKQ, which are the red, green and white blue bars, respectively. Tesla is the biggest position in every fund it's in and is over 7% of all of ARK Invest's combined assets under management.
Teladoc, ticker symbol TDOC, is ARK Invest's second biggest position by a pretty large margin as well. Kathy Wood has well over $2 billion in Teladoc, and I wouldn't be surprised to see that number keep climbing in the near future. In my opinion, the market is totally misunderstanding why Teladoc is underperforming expectations on earnings per share and I made an episode dedicated to explaining my reasoning. I'll leave a link to that in the top right hand corner of your screen right now and in the description below as well.
Based on that research, I've been accumulating hundreds of shares of Teladoc since March and I'm aggressively averaging down. As a result, Teladoc is quickly becoming one of my biggest positions overall. Pray for me. Here's another look at that same information, but in table form, that way you can see how much of each stock is held in each fund. Each row is one stock. Each column is one ARK Invest fund, and they're sorted by the total amount of money that Cathie Wood has in that stock today.
Note that out of ARK Invest's top ten holdings, only two are in ARKG right now, and almost all of them are in ARKW. In my opinion, that means Cathie Wood has greatly increased conviction in Internet companies relative to genomics and healthcare companies, both of which compete for dollars in ARKK. So if you're looking for new stocks to research, I'd be looking at things like digital wallets, ecommerce, streaming services, online communications and professional services platforms. Next, let's look at how assets under management changed for each fund, since that provides us with a baseline to compare against.
Here's a plot showing how each fund has changed over the last four trading weeks. ARKK, ARKG and ARKQ all got around 10% smaller in the last month. ARKW and ARKF are each about 5% smaller. And ARKX, which just launched last quarter, isn't changing much in size at all. Still representing under 2% of all of ARK Invest's actively managed funds, it's worth noting that ARKK is bigger than all of the other funds combined, representing 51% of Cathie Wood's assets under management. Overall, their AUM fell by about 8% over the last month.
So we're looking for position changes that are much higher or much lower than that negative 8% number. Here's how their combined positions have changed over time. Each row is one stock and the rows are sorted by the total size of ARK Invest's position in that stock, and each row is colored by the change in that position over the last month. So the more green the row, the more that position has grown relative to ARK Invest's assets under management, and the more red the row, the more it shrank below that same negative 8% number.
So, Cathie Wood's top five biggest overall buys for the month are UIPath, ticker symbol PATH; Twitter, TWTR; Unity Software, ticker symbol U; Coinbase, COIN and DraftKings, DKNG. If you're interested in my deep dives on UIPath, Coinbase or Draft Kings, check out my playlist of deep dives into individual growth stocks. I'll put that in the top right hand corner of your screen right now and in the description below as well. Also, shout out to my Patreon and YouTube channel members who use these dashboards for themselves.
A bunch of them spotted these buys in Unity software before I did and have been requesting a deep dive on that stock for a while now, so I'll be doing one very soon. Note that all five of these position changes are due to Cathie Wood actually buying more shares, which is the leftmost column in this table, not due to rallies in the stock price. Likewise, another callout worth making is that out of ARK Invest's top five positions. The only one Kathy Wood is actually buying more of over the last month is Teladoc, as its price continues to slide.
Going back to what I was saying earlier, note that the reddest rows here are CRISPR Therapeutics, Intellia Therapeutics and 10X Genomics, all of which are related to the genomics or advanced health care innovation spaces. If I scroll down a bit on this table, we can add Beam Therapeutics, Twist Biosciences, Invitae, Iovance Biotherapeutics and CareDX to that list. That doesn't mean any of these are bad companies, if you're in them for the long term. Like I said earlier, it means that Cathie Wood would rather put money from RCK into Internet companies rather than genomics companies, probably because she thinks they have a lot of room to run in the near future while the genomics age is still a little ways away.
Also, note that Skillz stock dropped in price by over 30% since the start of the month, and Cathie Wood has actually trimmed her position by 12% over that same time frame. Don't forget, just over 90 days ago, ARK Invest's position in Skillz was literally four times smaller than it is right now, even after these sells. So I'm not sure if this is a legit loss in conviction or if there were just so many great opportunities in other Internet companies that Skillz had to get trimmed a bit to free up some cash. Now that I I've gone through
how to read these tables for ARK Invest's combined positions, I'll quickly show you the tables for each individual fund and point out some interesting trends. Feel free to pause the video and take screenshots as necessary. Let's start with ARKK, ARK Invest's flagship innovation fund. We can see that the same trend of rotating out of Genomic stocks and into the stocks I mentioned before is happening here. Coinbase, Unity Software, Twitter, UIPath, and so on. Another thing worth pointing out is that while it looks like Kathy Woods sold a lot of Roku, a lot of the cells actually happened around Roku's most recent rally before coming back down in price.
So I think this was a trade around price action, not a loss in conviction. I always keep my eye on ARK Invest's biggest positions overall, so I'll keep you updated if I think something with Roku has actually changed. Here's the bottom half of ARKK by weight. RobinHood, ticker symbol HOOD, just IPO'ed a couple days ago and it's already over a $120,000,000 position inside ARKK and ARK Invest's 59th biggest position overall, the same type of initial pattern that we saw with Coinbase stock, which is now ARK Invest's 6th biggest position.
I wouldn't be surprised if Cathie Wood's position in RobinHood kept growing in the very near future. Personally, I'm hesitant to invest in RobinHood because of their role in the whole GameStop short squeeze fiasco and the fact that they make most of their money by selling their order flows to other market makers. That basically makes them an intermediary the exact type of company I typically try to avoid. So there's obviously some balance here between all of the innovative things that RobinHood has done as a digitally native investment platform and all the risks and drawbacks that come with them being such an obvious middleman.
Comment below if you want me to do a deep dive on RobinHood in the near future, or if any of the other companies that I've mentioned so far far interest you. I'm excited to hear which companies you're interested in the most. Note again that the reddest rows are Skillz stock followed mostly by companies found in ARKG like I mentioned earlier. Speaking of ARKG, let's move to that fund next. ARKG is ARK Invest's fund themed around the genomics revolution, the biggest positive change to the fund was actually UIPath, which is still the only company to be in every single ARK Invest fund. Besides Novartis and 10X Genomics,
many of these shrinking positions are due to these stocks dropping in price by 20% to 30% over the last month, dropping ARKG's price by almost 9% over that same period. Moving to the bottom half of ARKG. We can see that many of the smaller positions shrank by 20% or more as well, and that cash was used to buy Repair Therapeutics, ticker symbol RPTX; Quantum SI, ticker symbol QSI; and Verve Therapeutics, ticker symbol VERV. So, if you're looking into specific companies in the genomic space, those three companies are a good start for further research. And, if you're into ARKG in general, the skill I would practice here is dollar cost averaging down because this is a longer term play.
Think about how big you want your total investment in this space to be, and don't rush into it. Again, I'm not a financial advisor, and that's just my two cents. Let's move on to ARKW, ARK Invest's fund themed around the next generation of Internet applications. Here we can see the same stocks I mentioned earlier topping this list again. In addition to those, Mercado Libre, ticker symbol MELI and Grayscale Bitcoin Trust, GBTC; both moved way up in terms of weight in the fund. GBTC rose 20% as the price of Bitcoin went back over $40,000 per coin.
And Mercado Libre is an Argentinian company focused on operating ecommerce marketplaces and online auctions, making it comparable to companies like Amazon and Alibaba. Cathie Wood often buys this company on dips like the one that happened mid-month. If we look at the bottom half of the fund by weight, we can see a massive increase in Disney stock, ticker symbol DIS, and Vuzix, VUZI. Disney's streaming service, Disney+ is always going to be a solid business due to the sheer amount of IP that Disney owns like Marvel, Star Wars, ESPN, and so on.
Vuzix is a company that makes smart glasses for virtual and augmented reality in industrial applications, and it looks like Cathie Wood has just been accruing shares based on the latest dip in price. And of course, this big red section is her selling out of Chinese tech companies like JD.com and Tencent. Here's an interesting fact. ARK Invest is selling out of Nintendo, ticker symbol NTDOY in ARKW, but not in ARKK, at least so far. If we go back to our bar chart of ARK Invest's combined holdings, Nintendo is the closest a company can be to only being in ARKK, which usually contains stocks only found in other ARK Invest funds.
So, either ARK Invest is about to sell a lot more Nintendo stock in the near future, or ARKK is about to have a stock in it that no other fund has. Nintendo is not a Chinese company, and it's not part of this regulatory crackdown, at least to my knowledge, its stock price is down right now because the next round of PlayStation and Xbox consoles has come out, as well as the upcoming handheld Steam Deck by Valve, which will definitely directly compete with the Nintendo Switch. I'm excited to see what Nintendo's answer will be, but they definitely need one if they want to remain competitive. For ARKF, ARKQ and ARKX, I'll only focus on the bigger positions because these funds are so small.
The smaller positions in these funds tend to move up and down a lot since there're some of ARK Invest's smallest positions overall. First up is ARKF, ARK Invest's fintech fund, the biggest positive changes in positions by a mile are, surprise, surprise, Teladoc and UIPath, followed by a company called StoneCo., ticker symbol STNE, which is a Brazilian fintech company that provides end to end cloud-based solutions for merchants that want to combine in store, online and mobile channels to provide integrated ecommerce experiences.
Notably, Warren Buffett's, Berkshire Hathaway owns about 8% of this company as well, so it could be a good one to research. Looking at the positions in the bottom half of ARKF by weight, we can see that many of the stocks being sold are again part of the regulatory crackdowns of Chinese tech companies ,Tencent, Meituan, Pinduoduo, Ping An Health, Alibaba and Ke Holdings. There's not a lot going on at the bottom of this fund that I haven't already covered, but let me know in the comments below
if you want me to spend more time on something specific in the future. Likewise, if if we move on to ARKQ, ARK Invest's fun themed around the autonomous revolution, we can see that the reddest rows are JD.com and Baidu, more Chinese tech companies, followed by 3D Systems, which is an American company that focuses on manufacturing 3D printers, 3D scanners and materials. The biggest upward mover in ARKQ is, surprise, surprise, Unity Software, ticker symbol U. Also, I'll point out Tusimple: ticker symbol TSP, because ARK Invest has increased their share count by over 80% in the last month.
Tusimple is a California based company focused on building self driving trucks for long haul freight transport. Their stock has collapsed from $63 per share at the start of the month to $36 per share at the end. So Cathie Wood must see something in this company that the rest of the market doesn't yet see. Here's a quick look at how the bottom half of ARKQ by weight changed over the last month. Whenever you see this Dreyfus position in ARK's funds that's just cash. Specifically, USD. ARKQ's cash position right now as well over 1% of the fund, which is unusually high for ARK Invest.
So I'm curious to see how it gets spent in the near future. And finally here's ARKX, ARK Invest's newest fund themed around space exploration. This fund is tiny and the biggest additions to it are Unity Software and UIPath yet again, as well as Aerovironment, ticker symbol AVAV, which is an American defense contractor that primarily focuses on unmanned aerial drones. They reported earnings right before the start of July, and their stock promptly dropped by about 15% due to missing revenue estimates. So Cathie Wood has been buying the dip.
Here's the bottom half of ARKX by weight, just for completeness. Alibaba, Meituan, JD and Tencent are all getting sold out and the cash position inside the fund has increased as a result. The only other thing I'll point out here is that Nvidia, ticker symbol NVDA, had a four for one stock split on January 20th, which is why these numbers look so extreme. Overall, only a slight 10% decrease to ARKX's actual position in Nvidia. Let me know in the comments below what you think about these monthly recaps.
Is it helpful for you to see ARK Invest's biggest buys and sells in each fund, or should I just cover their combined positions and talk more about each individual stock? I'm definitely happy to adjust these recaps based on your feedback and of course, if you're interested in tracking this data for yourself in real time instead of waiting for my monthly recaps, these dashboards are available to my disruptor and insider level patrons on Patreon and channel members right here on YouTube. You can get access to them for yourself using the links in the description below.
Either way, I hope this episode helped you understand which companies ARK Invest has been buying into over the last month; which companies they sold as a result of this regulatory crackdown in China and other stocks I'm watching out for like Skillz, RobinHood and Nintendo. If it did, let me know by investing in the like button and subscribing to the channel with all notifications turned on. That's a great way to stay up to date on all things ARK invest and invest in the channel that invests in you. Until next time.
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