Ace hedge fund manager Cathie Wood is leveraging the recent bull run in shares of electric vehicle (EV) maker Tesla (NASDAQ:TSLA) and chip maker Nvidia (NASDAQ:NVDA), making huge profits for the fund. Cathie’s flagship fund, Ark Innovation ETF (ARKK), sold 324,511 shares of Tesla, valued at roughly $80 million, on June 12. Further, the fund manager sold TSLA stock from two other funds, namely, the ARK Autonomous Technology & Robotics ETF (ARKQ) and the ARK Next Generation Internet ETF (ARKW). Cathie sold a total of 393,000 shares of TSLA worth nearly $98 million from all three funds combined.
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Tesla shares have been on a roar this year, gaining 131.1% year-to-date, with more than 50% added in the past trading month alone. The news of both Ford (NYSE:F) and General Motors (NYSE:GM) adopting Tesla’s supercharger network across North America has led to bullish sentiment for the stock.
On the same day, Cathie’s ARK Invest also sold 20,000 shares of Nvidia, totaling approximately $8 million. Nvidia stock has zoomed 175.9% so far this year, following robust quarterly results and strong chip demand. Nvidia also recently joined the trillion-dollar capitalization club after launching the supercomputer that promises to make any person a programmer.
What is ARK Betting on With the Money?
On Monday, ARK Invest also bought 174,848 shares of Meta Platforms (NASDAQ:META) at an estimated value of over $47 million. META stock has gained 117.3% so far in 2023. Cathie also bought Teradyne (NASDAQ:TER) stock worth roughly $3 million, which has increased by 27.7% year-to-date.
What is the Future of the ARKK ETF?
As per TipRanks exclusive ETF forecast methodology, the ARKK ETF has a Hold consensus rating. Of the 404 analyst ratings on ARKK, 49.75% are Buys, 40.35% are Holds, and the remaining 9.90% are Sells. Moreover, the average ARKK stock price target of $48.57 implies 12.2% upside potential from current levels. At the same time, ARKK stock has gained 42.1% so far in 2023.
