Catherine Wood, chief executive officer and chief investment officer, Ark Invest, speaks at the Milken Institute Global Conference in Beverly Hills, California in October of 2021.
Photo by Patrick T. Fallon.
Ark Invest is still selling things after it was revealed that it was leaving the home flipping business.
Over the past two weeks, Ark's flagship exchange traded fund has sold nearly 7 million shares.
"When there is a fundamental change in the story, like the abandonment of iBuying by Zillow, that violated one of our theses," she said.
Ark Invest rarely sells its holdings when the going gets tough and instead buys more shares when the stock goes up.
When a high-growth company stumbles and its stock price goes down, Cathie Wood's investment management company buys the dip.
Ark has reduced its stake in the online real estate firm after it announced that it was exiting the home flipping business. The news and the earnings report sent the stock down 40%.
On Wednesday, 31,361 shares were sold by the Disruptive InnovationETF, bringing its remaining position to . At the beginning of November, the same fund owned about 6.8 million shares of the company.
When there is a fundamental change in the story, like the abandonment of iBuying by Zillow, that violates one of our theses. It's unusual for us to sell on a big drop in the stock, but we have other stocks that have gone down as well.
ARK has been paring back its stake in the Next Generation Internet and Fintech Innovation Exchange Traded Funds.
Ark Invest still believes that a tech company could take the hassle out of buying and selling a home and create a profitable and sizable market, despite the mix-up in the home flipping business.
There is a boat named after a woman named Cathie's Ark.
Business Insider has an original article.
