Ark Invest director Cathie Wood’s latest investments compiled by Bloomberg have focused on small stocks during the first half of September. Some names include biotech firm Ginkgo Biowrks Rg-A and space systems company Rocket Lab USA Rg-A according to Abhishek Vishnoi on Yahoo Finance.

That’s a change from Ark funds buying Tesla in 10 sessions from the last week of May to mid-June after the electric carmaker lost its crown jewel status in its main fund, a position it had occupied for about four and a half years.

Wood’s penchant for smaller stocks came after markets tumbled in the wake of higher-than-expected US inflation and another huge rate hike by the Federal Reserve in September.

Ark ranks as the second largest shareholder in UiPath Rg-A and the fifth largest in Ginkgo, while Rocket Lab is a relatively recent addition to its holdings.

Some of the smaller stocks have fallen much more than the largest companies this year, which would have enhanced their appeal amid any bargain hunt. For example, UiPath, Ginkgo and Rocket Lab are each down more than 60% so far this year, compared to a 21% drop for both the Russell 2000 and S&P 500.

To be sure, Wood still bought shares of Tesla on Monday after a drop in the wake of the company’s disappointing delivery figures.

Ark’s flagship ETF, Ark Innovation, has plunged 58% in 2022 as the Fed’s historic tightening and global recession fears hit growth stocks.

Categorized in: