ARK’s leader is making a decision opposite to that of Warren Buffett in the same sector.
Cathie Wood is moving against the moves of the greatest legend of all time. Yesterday, ARK funds sold more than $28 million worth of $GOOGL shares, the Class A shares of the search engine giant. The sale is also significant in relation to the total number of shares held by ARK funds. This move is opposite to what Berkshire Hathaway, the company founded by Warren Buffett, is doing, as it continues to accumulate shares of Big G.
Where did the $28 million that ARK raised from the sale go? For the most part, into another company in the sector, Meta. Other investments went into the biotech and biopharma sectors, with relatively small positions in Beam Therapeutics, Intellia Therapeutics and Crispr, the latter of which had already been the subject of significant investments in recent days.
All of Cathie Wood’s moves during the latest trading session
| Ticker | Company | Aggregate net |
|---|---|---|
| GOOGL | Alphabet Inc. | -$28.6M |
| META | Meta Platforms Inc. | +$26.4M |
| BEAM | Beam Therapeutics Inc. | +$7.3M |
| NTLA | Intellia Therapeutics Inc. | +$2.6M |
| CRSP | CRISPR Therapeutics AG | +$2.6M |
| TEM | Tempus AI Inc. | -$1.5M |
It was, if you will, a day of major moves, at least compared with the averages generally recorded by ARK funds, all or nearly all of which are actively managed and also move against price trends.
The most important move was the transfer of the $28.6 million obtained from the sale of Google shares into Meta, an investment that—given the latest activities of the two companies—nevertheless remains within the AI sector.
Still with regard to the AI sector, the group continues to sell Tempus, also as part of a disengagement process that has been under way for some time.
Moving against Warren Buffett
Berkshire Hathaway’s investment in Google has been the most significant development at the top levels of Wall Street in recent months. It was a move few expected, and the Oracle of Omaha began preparing it as early as last year.
The move was explained as a desire to commit to the AI sector, while focusing on companies that already have other significant business lines. It is not clear at this point what prompted Cathie Wood to do the opposite, with the stock experiencing a relatively poor day yesterday.
Nor is it clear why there was such a significant commitment to Meta, which was effectively the destination for the proceeds from the sale of GOOGL shares.
