A lot of the Robinhood (HOOD) shares that Cathie Wood’s ARK Invest owned have been sold. The company sold 1.4 million shares worth $36.4 million. There were three big ARK funds sold: the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF). The deal was finalized on October 8.
With this move, Robinhood’s stock price has risen more than 100% so far this year, hitting highs not seen in many years. Robinhood’s stock ended at $25.61 on October 8, which was the highest level since November 2021. This shows that the company has made a strong comeback and investors have faith in it again after its public debut.
The choice to sell these shares was mostly based on the need to follow legal rules. ARK Invest has to follow Rule 12d3-1, which says that funds can’t have more than 5% of their assets in shares from any one company. By selling Robinhood stock, ARK made sure that its funds would stay within the 5% limit.
Even though it sold a lot of shares, ARK still has a big stake in Robinhood. Its ARKK fund still holds about $274 million worth of shares, which is 4.9% of the fund’s total assets. Even though it’s not ARK’s biggest investment, Robinhood is still an important part of its assets.
ARK also owns a number of other high-growth tech and finance companies, in addition to Robinhood. Notably, ARK has a big stake in Coinbase. As of October 9, ARKK had $368 million worth of shares in Coinbase, which is 6.6% of its total assets. ARK’s third-largest position right now is Coinbase, coming in after Tesla and Roku.
ARK Invest’s ongoing plan of balancing portfolio exposure while following legal requirements is shown by the sale of Robinhood shares. Even though Robinhood is growing a lot in 2024, ARK’s main goal is still to keep its stock diverse by making smart investments in a number of high-performing areas.
Cathie Wood’s company keeps an eye on and makes changes to its stocks to make sure it has a long-term plan for growth and security. ARK Invest is still in a good position to take advantage of future market chances. It has stakes in both fintech companies like Coinbase and well-known tech companies like Tesla.
