Cathie Wood has made a name for herself as an innovation-focused growth investor, and her leadership as the founder and CEO of Ark Invest has led some investors to pay close attention to the equity purchases and sales in the various exchange-traded funds (ETFs) managed by the company. While performance across her funds has been mixed in recent years, Wood’s top picks have tended to post explosive gains across the stretch.
With that in mind, read on for a look at the three most recent stocks purchased for the company’s flagship Ark Innovation ETF (NYSEMKT: ARKK).
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As of this writing, Figma (NYSE: FIG) is the most recent stock to be purchased for Cathie Wood’s Ark Innovation ETF. Ark purchased shares of the stock for the fund on Feb. 23, marking the third time it had purchased shares of the design-collaboration software specialist in the month.
Figma only ranks as the Ark Innovation ETF’s 38th-largest holding as of the most recent update, accounting for approximately 0.66% of the total portfolio. On the other hand, Figma has the distinction of being one of just a handful of stocks that the fund increased exposure to in the second half of February.
Figma has seen volatile trading over the last six months as investors weigh concerns about decelerating growth and long-term profitability. On the other hand, sales still grew 40% year over year in the fourth quarter — and the business posted an adjusted operating margin of 14% in the period. While Figma is a high-risk, high-reward play, Wood and Ark are clearly bullish on the company’s outlook.
CRISPR Therapeutics (NASDAQ: CRSP) has long been one of the biggest holdings in the Ark Innovation ETF, and Wood’s flagship fund once again purchased more shares of the gene-editing specialist’s stock on Feb. 20. As of this writing, CRISPR stands as the second-largest holding in the fund and accounted for 6.64% of total portfolio weight.
CRISPR is a biotech company that’s generating relatively little revenue, posting sales of just $3.5 million last year. On the other hand, the company could wind up delivering explosive growth if even a small number of the gene-editing drug candidates in its pipeline see meaningful commercialization. For better or worse, CRISPR is a speculative growth play that could play a big role in shaping the Ark Innovation ETF’s performance over the next five years.
