Well-known investor Cathie Wood and her Ark Investment Management firm have been making major moves this week when it comes to Chinese tech stocks.
This news comes as the country’s anti-monopoly and data-security crackdown on technology firms heats up. Thus, Wood and her team have been unloading Ark’s stake in these tech stocks through its various exchange-traded funds (ETFs).
“I do think there’s a valuation reset,” Wood said regarding the outlook for bigger Chinese tech companies during a monthly webinar with investors on Tuesday. “From a valuation point of view, these stocks have come down and again from a valuation point of view, probably will remain down.”
According to SeekingAlpha, “ARK Invest dumped over 200K shares of JD.com (NASDAQ:JD), 1.45M shares of HUYA Inc. (NYSE:HUYA) and over 350K shares of Tencent Holdings (OTCMKTS:TCEHY)” on Tuesday. SeekingAlpha also states that Wood and her team have been offloading shares since the beginning of the month. In fact, “[s]ince July 5th, ARK has sold over 610K shares of JD, north of 3M shares in HUYA, and over 1M shares of TCEHY.”
Overall, the shares of these tech stocks are coming out of a number of Wood’s ETFs. This includes the ARK Innovation ETF (NYSEARCA:ARKK), ARK Next Generation Internet ETF (NYSEARCA:ARKW) and ARK Fintech Innovation ETF (NYSEARCA:ARKF). More specifically, all of the “3M+ shares of HUYA came out of ARKW, the 1M+ shares of TCEHY came out of ARKK, and JD shares were split as some came from ARKK and ARKF.”
Both JD and HUYA stock were down as of Wednesday afternoon, while TCEHY stock was up nearly 2%.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Nick Clarkson is a web editor at InvestorPlace.