Cathie Wood’s Ark Invest made a significant move, acquiring close to 10,000 shares of Reddit on the social media platform’s debut trading day.
Ark’s latest trading update reveals the Next Generation Internet ETF (ARKW) securing 5,914 Reddit shares, while the Fintech Innovation ETF (ARKF) added 4,068 shares to its portfolio.
The combined value of these holdings stands at approximately $503 million, calculated based on Reddit’s closing price of $50.44 per share on Thursday. The precise amount Ark paid for these shares remains undisclosed.
Notably, Reddit was priced at $34 per share during its initial public offering (IPO), with trading commencing at $47 per share on Thursday.
Reddit occupies a minor position in both the ARKW and ARKF portfolios, with Ark’s flagship Innovation ETF (ARKK) notably excluding the social media stock.
Cathie Wood gained prominence in 2020 and 2021 for her aggressive growth investment strategy, which appeared well-suited for the stock market’s surge during the pandemic.
However, Ark’s funds faced challenges when the markets retracted in 2022, resulting in underperformance compared to the Nasdaq 100 index during the subsequent rally over the past year.
