Star investor Cathie Wood snapped up the 13% slump in Tesla shares as her $27 billion fund slid in the tech shakeout
- Star stock-picker
Cathie Woodbought the 13% slump in Teslashares as her flagship fund slid on Tuesday.
Ark InvestETFs bought a total of 240,548 Tesla shares as its stock fell 13%, Bloomberg reported.
- "We love the liquidity that this provides us, we think it's very healthy, a very healthy shakeout," Wood said.
Cathie Wood, founder and CEO of
Wood has earned cult-like status on Wall Street, owing to her firm's
Tuesday's sell-off saw the most intense selling in tech mega-caps, with the Nasdaq composite ending the day nearly 2.5% lower. Tesla stock sank after the company halted new orders for its cheaper version of its Model Y crossover. Elon Musk said he doesn't think the vehicle's range "meets the Tesla standard of excellence." The automaker closed 2.2% lower, at $698.84 per share, on Tuesday.
Three of Ark's exchange-traded funds - Ark Innovation, Ark Autonomous Technology & Robotics, and Ark Next Generation Internet - together bought 240,548 Tesla shares on Tuesday, according to an email seen by Bloomberg.
Top names owned by Ark Innovation ETF, Wood's flagship fund, like Palantir, Tesla, Roku, Square, Paypal, Zillow, and, Spotify were all down on Tuesday on concerns over lofty valuations. But investing strategies like Wood's gave way to a "buy the dip" frenzy that resulted in the Nasdaq 100 turning positive by mid-afternoon, although it was in the red at the close.
"We love the liquidity that this provides us, we think it's very healthy, a very healthy shakeout," Wood told Bloomberg of her ETF teams. "All I know is we are keeping our eyes on the prize and the prize just got a little bit more interesting."
Wood's main fund was down as much as 11.8% shortly after market open. But the fund had already traded about 30 million shares by mid-day, according to CNBC, and ended the day just 3.3% lower.
"Corrections are good, they keep us all humble," Wood said. "The strongest bull
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