Cathie Wood’s Ark Invest funds added a further $124 million stake in Tesla on Tuesday as the shares closed below $700 for the first time in 2021, according to the fund’s website.
The high-flying $26.6 billion ARK Innovation ETF, one of the best performing exchange traded funds in 2020, fell sharply this week along with Tesla, which makes up about 10% of the fund, as momentum stocks pulled back sharply.
The fund has large positions in so-called momentum stocks, which tend to attract investors based on thematic trends rather than fundamentals or valuation.
-Reuters