Ark Invest, founded by Cathie Wood, continued to significantly reduce holdings in tech stocks such as NVIDIA on Friday.
On March 28, according to Ark Invest Tracker, after a large-scale sell-off of tech stocks and crypto ETFs on Thursday, Ark Invest further cut its positions in NVIDIA and other tech stocks on Friday.
This included selling over 58,000 shares of NVIDIA and more than 19,000 shares of AMD, accounting for approximately 0.1%-0.15% of the fund's total value. The fund only bought 48,600 shares of biotech company Arcturus Therapeutics, indicating a shift from AI chip reductions toward medical innovation.
From this information, it appears that Ark Invest, under Cathie Wood, is undergoing a significant rebalancing of its assets. The core of this operation is a systematic reduction in tech stocks, especially giants in the AI chip sector like NVIDIA and AMD, while also sharply decreasing exposure to crypto assets, including Bitcoin ETFs (ARKB) and Coinbase (COIN) stocks. This sell-off is not an isolated event but part of a series of recent actions, suggesting a well-considered strategic adjustment.
Market timing is intriguing. Just before the reduction, Cathie Wood publicly stated that the market was filled with "extreme fear" and believed it was a good time to buy volatile stocks. This statement contrasts sharply with her selling activity, indicating she believes these popular tech stocks and crypto assets may already be fully or even overvalued at the moment, with short-term risk-reward no longer attractive. She is taking profits and reallocating funds into innovation sectors she perceives as having greater potential and that are not yet fully priced by the market.
This behavior is typical of active ETFs. As a fund manager focused on high-growth, high-risk innovative sectors, her portfolio usually maintains high turnover to actively capture explosive opportunities across different fields. Therefore, this rebalancing should not be simply interpreted as a long-term bearish signal on tech or crypto industries but rather as a tactical retreat and repositioning based on short-term valuations, market sentiment, and opportunity costs. It reflects an investment strategy aiming to balance the enormous potential of disruptive innovation with the short-term market overheating.
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