A few of the ARK Invest exchange-traded funds run by ETF star Cathie Wood sold around $600,000 worth of shares of Alibaba Group Holding Ltd. (NYSE: BABA) on Wednesday. While $600,000 isn’t much to someone like Wood or ARK, it is significant because it signals the end of Alibaba in ARK’s portfolio.
Recently, there was a crackdown in China on big internet companies and a series of regulations were issued to keep these giants in line. 24/7 Wall St. first pointed this out in late July when the Hang Seng and Shanghai Composite Index took the plunge.
ARK responded at the time by cutting Chinese stocks out of their portfolios, or at least trimming those stakes. Now the end is near. ARK had been dumping Alibaba over the past month, among others, but now things seem to be tapering off with practically all the Alibaba stake liquidated. Wood and company dumped $2.2 million worth of Alibaba on the Friday of last week, or 13,000 shares. And the week before that ARK sold over 150,000 shares of Alibaba for a price of about $27.8 million.
For Wednesday’s sales, ARK Fintech Innovation ETF (NYSEARCA: ARKF) sold 1,717 shares, ARK Autonomous Technology & Robotics ETF (NYSEARCA: ARKQ) sold 1,376 shares and ARK Space Exploration & Innovation ETF (NYSEARCA: ARKX) sold 533 shares. At Wednesday’s closing price, this would have valued these sales at roughly $2.2 million.
As of September 2, ARK now only holds just 700 Alibaba shares, split across three funds: ARKF has 200, ARKQ has 300 and ARKX has 200. Again, while these shares don’t represent much, it underlies the point that this used to be a significant holding, but not so much anymore.
It begs the question of how sanguine is Wood on China and Chinese stocks going forward. Also, is there a point where Wood and company would be willing to get back in to Alibaba or other Chinese stocks?
Here is a look at all the other stocks that ARK was selling on Wednesday:
| Fund | Ticker | Name | Shares |
|---|---|---|---|
| ARKF | 6060HK | ZHONGAN ONLINE P&C INSURANCE | 759,800 |
| ARKF | 9923HK | YEAHKA | 1,069,600 |
| ARKF | BABA | ALIBABA | 1,717 |
| ARKG | SEER | SEER | 3,702 |
| ARKG | NVS | NOVARTIS | 32,322 |
| ARKG | RHHBY | ROCHE | 426,800 |
| ARKG | PSTI | PLURISTEM THERAPEUTICS | 19,873 |
| ARKG | CLLS | CELLECTIS | 21,200 |
| ARKG | MCRB | SERES THERAPEUTICS | 682,519 |
| ARKK | NTDOY | NINTENDO | 141,000 |
| ARKK | NSTG | NANOSTRING TECHNOLOGIES | 138,335 |
| ARKK | MCRB | SERES THERAPEUTICS | 51,957 |
| ARKQ | XONE | EXONE | 1,079 |
| ARKQ | NVDA | NVIDIA | 15,559 |
| ARKQ | ISRG | INTUITIVE SURGICAL | 2,054 |
| ARKQ | BABA | ALIBABA | 1,376 |
| ARKX | BABA | ALIBABA | 533 |
| ARKX | GOOG | ALPHABET | 1,043 |
Catherine Wood, the CEO and CIO of ARK Investment Management, is a minority and nonvoting shareholder of 24/7 Wall St.
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