"Words and deeds" of the wooden sister: after the fund fell, sold Tesla and Shopify

Source: Financial community

Cathie Wood, founder of ARK Invest and "Sister Wood," said in a recent interview that when the company's fund loses money, ARK typically turns its positions to high-conviction stocks such as TSLA.US, Roku (ROKU.US), Teladoc Health (TDOC.US), Block (SQ.US), Shopify (SHOP.US) and others. However, the analysis shows that in recent days, she has actually been selling some high-faith stocks rather than buying.

According to ARK's published trading records, Wood didn't actually buy any high-faith stocks other than Roku, but instead dumped Tesla and Shopify stocks:

ARK funds have been falling

Ark's spokesperson did not comment on the company's move, but the deals appeared to run counter to what Wood said was the strategy of the Ark fund's downturn.

From December 9-14, multiple ARK funds fell. ARK Innovation ETF (ARKK.US) fell 7 percent, ARK Autonomous Technology & Robotics ETF (ARKQ.US) fell 4.7 percent, ARK Next Generation Internet ETF (ARKW.US) fell 9.1 percent, and ARK Genomic Revolution Multi-Sector EtF (ARKG.US) fell 3.3%, ARK Fintech Innovation ETF (ARKF.US) fell 8%, and ARK Space Exploration & Innovation ETF (ARKX.US) fell 2.6%.

Wood seemed to hint in an interview that during this downturn, Ark would buy more of the company's high-faith stocks than sell them.

"When traditional asset managers manage their portfolios with risk aversion, they diversify their investments to get closer to their indexes," the Ark CEO said. "When they buy index stocks and then sell our (high-faith) stocks, we buy them."

Is such a move illegal?

Rachel Spooner, a professor of securities law at Boston College's Carroll School of Management and a former federal prosecutor, said Ark could sell shares that Wood hinted she was buying without violating any regulations.

Spooner said that as long as Wood showed good faith, prosecutors would not sue ARK for such a seemingly contradictory deal for such a short period of time.

"If she's forced to change her mind for the best interests of investors, it doesn't matter if her behavior is inconsistent with what she said before."

Ironically, Wood made the remarks while introducing ARK's newly formed ARK Transparency ETF (CTRU.US), which focuses on companies with more transparency in their operations.

Wood said ARK believes transparency is very important to its operations, and she said ARK's operations are "very transparent."

Meanwhile, despite the U.S. CPI's biggest gain in 39 years recently, Wood continues to stick to its long-term deflationary view.