Cathie Wood’s ARK Invest ETFs (exchange-traded funds) made several notable portfolio moves on Tuesday, September 30, according to daily fund disclosures. The prominent hedge fund manager continued to pour millions into Chinese stocks, including Baidu (BIDU), Alibaba (BABA), and JD Logistics (HK:2618).
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On the sell side, Wood reduced her stake in Brera Holdings (BREA) and trimmed the fund’s position in defense contractor Kratos Defense and Security Solutions (KTOS).
Wood Boosts Stake in Baidu and Alibaba
The ARK Innovation ETF (ARKK) acquired 52,388 shares of tech giant Baidu, totaling roughly $7.1 million. The fund also increased its stake in Chinese e-commerce giant Alibaba, purchasing 23,538 shares for over $4.2 million. Plus, the ETF bought 263,700 shares of JD Logistics for about $441,202.
These trades reflect Wood’s growing confidence in Chinese technology firms, which are attracting increasing investor interest. Alibaba and Baidu have recently gained significant attention due to their advancements in artificial intelligence (AI).
Both companies have begun using their own in-house AI chips to train models, reducing their reliance on the American chip manufacturer Nvidia (NVDA). Alibaba has also introduced a high-performance processor aimed at challenging Nvidia’s dominance in the Chinese AI chip market.
Wood Reduces Exposure to Brera and Kratos Defense
The ARKK fund sold 231,903 shares of multi-club sports owner Brera Holdings for nearly $7.05 million. Yesterday, BREA stock jumped as much as 14.9% in intra-day trading before ending down 1.3%.
This comes after a period of notable investment in Brera. The ARKK ETF had invested $49 million in Brera Holdings as part of the company’s transformation into Solmate. Notably, Wood invested another $162 million in the stock just last week.
Furthermore, Wood continued to reduce exposure to Kratos Defense. The ARK Space Exploration & Innovation ETF (ARKX) sold 16,048 shares yesterday, valued at $1.4 million, as part of the fund’s strategic portfolio reshuffle.
Notably, Wood increased investment in another defense contractor, L3Harris Technologies (LHX), buying shares worth $2.19 million on September 29.
Wall Street’s Take on BIDU, BABA, BREA, and KTOS
We used the TipRanks Stock Comparison Tool to determine which company is preferred by analysts.
Currently, Wall Street has assigned a “Strong Buy” consensus rating to Alibaba and Kratos Defense, with BABA stock offering higher upside potential over the next twelve months.
