(Feb 24): Tuesday morning’s plunge in popular technology stocks offered a rare discounted buying opportunity for true believers. Cathie Wood was among them.
The superstar head of Ark Investment Management snatched up Tesla Inc. after it sank as much as 13%, wiping out its gains for the year, she said in an interview on Bloomberg Radio. While she characterized her purchase as “a lot,” she didn’t specify how much her funds bought.
Growth strategies like Wood’s faced a reckoning on Tuesday with the Nasdaq 100 falling by more than 3% at one point, amid Treasury yields rising and concerns about lofty valuations in tech names. That gave way to a “buy the dip” frenzy that helped the benchmark turn positive by 3:20 p.m., though it closed down 0.2%.
“We love the liquidity that this provides us, we think it’s very healthy, a very healthy shakeout,” she said of her exchange-traded funds’ 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, the US$27 billion ARK Innovation ETF (ARKK), notched its worst back-to-back rout since September, falling as much as 11.8% and ending the day down 3.3%. A record $4.96 billion worth of shares changed hands in total, more than double the previous high just a day prior.
“Corrections are good, they keep us all humble,” she said. “The strongest bull markets I’ve been in are built on walls of worry.”