Cathie Wood sold a near $270 million stake in Tesla Inc. as the bond selloff hit rate-sensitive technology stocks to spur outflows from her growth-focused funds.
Wood’s Ark Investment Management offloaded more than 340,000 Tesla shares across three exchange-traded funds on Tuesday, according to the firm’s daily trading update.
Some 11% of the famous ARK Innovation ETF (ticker ARKK) is still betting on Elon Musk’s company, according to data compiled by Bloomberg. The firm tends to trim the stake when it rises above 10%.
Tesla has generally outperformed in the global rout hitting rate-sensitive investing styles, while ARKK posted one of its worst sessions in months on Tuesday.
Meanwhile data overnight showed money managers withdrew $297 million from the growth-focused fund on Monday, the most since March, to bring the four-day outflow to more than $660 million.
Since the Federal Reserve signaled last week a move to taper pandemic stimulus, Treasury yields have jumped and sent a shockwave through growth shares. Ark funds are heavily exposed to such names thanks to Wood’s focus on disruptive innovation and tech.