Cathie Wood’s ARK Buys $12.9M of Slumping Tech Stock

ARK Invest, the asset manager led by Cathie Wood, purchased $12.9 million of a slumping technology stock during the recent market rout, according to the firm's regulatory trading reports. The buys were recorded across ARK's actively managed funds.

The purchases came as U.S. equity markets fell amid rising interest-rate expectations and renewed selling of high-growth shares. The filings show ARK increased exposure to a company whose shares have declined in the current sell-off.

The firm's filings list the trades without providing a rationale. ARK did not provide further comment when contacted about the transactions.

Technology names have registered losses as investors reassess valuations for companies with high expected future growth. Volatility in the sector increased after economic data pointed to persistent inflation and a higher-for-longer outlook for interest rates, factors that can weigh on stocks with extended forward earnings expectations.

ARK manages several actively traded ETFs focused on disruptive innovation and frequently adjusts positions in response to price movements. The $12.9 million purchase will be reflected in ARK's next periodic fund-holdings report for investors to review.