TLDR
- Cathie Wood’s ARK Invest purchased $21 million worth of Chinese tech stocks on September 22, with $16.3 million going to Alibaba alone
- ARK bought shares in Alibaba, Baidu, and Pony AI through multiple ETFs as Chinese companies gain investor attention
- Wood sold $7.7 million worth of nuclear energy company Oklo shares after the stock hit a 52-week high
- ARK also reduced positions in Roblox ($2.7 million) and Shopify ($2.67 million)
- The Chinese stock purchases mark a strategic shift for ARK’s portfolio focus
Cathie Wood’s ARK Invest made major portfolio changes on September 22, investing heavily in Chinese technology companies while trimming positions in other holdings. The fund manager purchased $21 million worth of Chinese stocks across three companies.
The largest purchase was Alibaba Group, with ARK acquiring 99,090 shares worth $16.3 million. The shares were bought through the ARK Next Generation Internet ETF and ARK Fintech Innovation ETF. Alibaba operates China’s largest e-commerce platform and runs a cloud computing business with AI development tools.
ARK’s Autonomous Technology and Robotics ETF purchased 21,245 shares of Baidu for $2.90 million. Baidu dominates internet search in China and offers AI-powered products and autonomous driving technology through its Apollo platform. The company also provides cloud computing services and video streaming.
The same ETF bought 103,002 shares of Pony AI valued at $2.13 million. Pony AI develops autonomous vehicle technology and is expanding operations into Singapore and the Middle East. The company partners with ComfortDelGro to introduce autonomous vehicles in Singapore.
Both Alibaba and Baidu have gained popularity due to their AI developments. The companies now use their own AI chips to train models, reducing dependence on Nvidia. Alibaba recently launched a high-performance processor designed to compete with Nvidia in the Chinese market.
Chinese Stocks Show Strong Performance
Alibaba stock has risen over 30% in the past month with year-to-date returns of 93.3%. Baidu and other Chinese tech companies have seen increased investor confidence from AI spending and new product launches. Chinese companies are quickly turning AI technologies into profitable products.
The purchases represent a shift in ARK’s investment strategy. Wood has increased focus on Chinese technology companies as they attract growing investor attention. The timing comes as Chinese firms advance their AI capabilities and expand globally.
On the selling side, ARK sold 54,936 shares of nuclear energy company Oklo worth $7.7 million. Oklo stock reached a 52-week high of $142.85 on the same day. Wedbush analyst Daniel Ives raised Oklo’s price target to $150, citing the company’s nuclear growth strategy.
Portfolio Rebalancing Continues
Wood also reduced positions in gaming platform Roblox, selling shares worth $2.71 million. ARK trimmed its stake in Canadian e-commerce company Shopify by $2.67 million as well. These sales appear to be part of ongoing portfolio rebalancing.
ARK’s other trades included purchasing 10,505 shares of Arcturus Therapeutics. The fund sold 20,019 Roblox shares and 17,428 Shopify shares on Monday. These moves reflect Wood’s strategy of rotating between growth sectors.
The Chinese investments come as these companies expand their AI capabilities and global reach. Pony AI is working on robotaxi services in multiple countries. Baidu continues developing autonomous driving technology for the Chinese market.
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