Cathie Wood has recently been among the busier active managers, shifting her portfolio around. Her moves are worth following for growth investors, as she’s picked some of the most prescient mega-trends in the past. SoFi Technologies (NASDAQ:SOFI) has been a stock Wood has bought and sold, but her recent decision to buy $1.5 million worth of SOFI stock is generating a lot of buzz today.
Unfortunately, the broader tech sector is deep in the red today, and SOFI stock is no different, dropping more than 2.5% in early afternoon trading. Thus, it’s hard to gauge how the market is reacting to this move as an independent catalyst.
However, it’s worth noting that Cathie Wood’s purchase decision coincided with SoFi’s decision to exit the crypto game altogether by the end of the year. Wood’s various actively managed exchange-traded funds (ETFs) have been accumulating shares of SOFI stock for some time, with recent estimates being that her funds now hold more than 1.7 million shares of the fintech company.
Let’s dive into what investors may want to make of this news today.
SOFI Stock Is Down, Despite News of Yet Another Cathie Wood Purchase
What’s interesting about Wood’s recent decision to add to her position in SoFi is how this move coincides with other transactions of late. Notably, Ark Invest sold another big chunk of Coinbase (NASDAQ:COIN) stock in a move that appears to choreograph a strategy of shifting away from having too much exposure to crypto and blockchain-related companies.
To what extent SoFi’s move away from crypto influenced Wood’s purchase decision is unclear. But this move, alongside her Coinbase sale, does add to the narrative that perhaps many institutional investors aren’t yet ready to load up on digital assets and related companies.
Another aspect of this transaction I think is worth reflecting on is the sustained nature of Wood’s purchases. With SoFi stock appearing to consolidate around the $7-$8 per share level, perhaps Cathie Wood views this stock as a longer-term hold. If so, value investors, and those in this stock for the long-term may take solace in these moves.
On the date of publication, Chris MacDonald 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.