Cathie Wood's ARK snapped up $130 million in Zoom stock when the shares tumbled almost 15% in a day
- Cathie Wood's
ARK Investfunds bought almost 650,000 Zoomshares for just over $130 million.
- The video conferencing firm's share price fell almost 15% on Tuesday - its biggest one-day fall in almost three months.
Two of Wood's ETFs, ARK Innovation and ARK Next Generation Internet, purchased nearly 650,000 shares in Zoom, which is down 39% this year and 23% this quarter.
Wood, who is Ark Invest's chief executive and chief investment officer, runs funds that focus on disruptive innovation. She's previously hit headlines for backing Tesla stock to hit $4,000 and bitcoin to surge to $500,000 within five years.
Ark's Zoom bet coincides with its significant Tesla sell-off. It has sold $2.4 billion worth of shares in Elon Musk's company since September, as the debate over whether its stocks are overvalued has intensified.
Wood outlined her "buy low, sell high" investing philosophy in an interview with Barron's earlier this month.
"We are usually selling when one of our stocks, even our high conviction stocks, has gone up say 20, 30, or 40% relative to the rest of the stocks in our portfolio," she said. "It's just called portfolio management."
"If one stock has done that well relative to the others in the portfolio, we take some profits and deploy them into stocks that have been neglected or punished for some reason," she added.
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