Ark is quietly reducing exposure to one of Cathie Wood’s hottest stocks

(Bloomberg) — Cathie Wood has launched Roku Inc. may have been touted as one of her top picks just two weeks ago, but her company has been cutting her stakes in the video streaming business for the entire month.

Ark Investment Management sold an additional 47,200 shares on Wednesday, bringing the total divestment since June 30 to about 520,000, according to Bloomberg calculations.

At Wednesday’s closing price, it’s a stake worth a staggering $243 million.

Shares in the streaming service are up a whopping 69% from this year’s low in May, so it’s possible Ark is cashing in on those gains to raise money for other causes. Roku remains one of the company’s largest holdings, accounting for 6.5% of its flagship ARK Innovation exchange-traded fund (ticker ARKK), according to data collected by Bloomberg, worth more than $1.4 billion.

Still, it may surprise some market participants to see the sales given Wood’s vocal support. She told CNBC in an interview mid-month that it would be a mistake to sell stay-at-home winners.

An Ark spokesperson did not immediately respond to a request for comment.

“Wood’s process is to sell winners and buy losers in small daily doses,” said Eric Balchunas, an ETF analyst for Bloomberg Intelligence. “Roku has been the biggest contributor to ARKK’s returns this year, so it would be consistent with its strategy to capture some of those gains and buy stocks that it likes but is struggling.” had.”

Wood’s stellar performance in 2020 and technology-focused thematic betting have made her a star money manager with over a million followers on social media. Some of its high-profile adaptations have failed, such as Ark’s decision to buy Virgin Galactic Holdings Inc. before the shares more than tripled.

Others have proved more farsighted. Wood, for example, sold most of the company’s Chinese stock before its worst sell-off this year.

Roku’s second quarter results are expected next week. In May, the revenue forecast for the quarter beat analysts’ average estimates, boosting equities. At the time, the company had 53.6 million active accounts.

Read more: Cathie Wood sells Chinese tech stocks, Val valuation reset warning

Ark’s daily trading summary reflects the active decisions of the management team and does not include any activity to create and redeem the ETFs. For this reason, the company’s total purchases or sales on each day may deviate from the summary.

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