Cathie Wood is Selling These 12 Stocks in 2023

Fahad Saleem
8 min read

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In this article, we will take a look at Cathie Wood selling these 12 stocks in 2023. To see more such companies, go directly to Cathie Wood is Selling These 5 Stocks in 2023.

After a bruising 2022, Cathie Wood’s funds slowly started to recover this year, thanks to the broader rally in the stock market amid hopes that the Federal Reserve could pause its rate-hike spree which according to Ms. Wood contributed to the collapse of regional banks. Cathie Wood in her latest quarterly commentary said that authorities were quick to blame crypto for the banking crisis. But the 67-year old hedge fund manager said the regulators should “focus on the central points of failure in the traditional banking system instead of blocking the decentralized, transparent, and auditable financial platforms that have no central points of failure.”

The stock market collapse that started in 2022 amid interest rate hikes especially hammered growth investors like Cathie Wood, who invest in small, often loss-making companies promising returns far into the future. It was all rose and sunshine for ARK investors when money-lending policies were easy and economy was thriving. But as inflation started to rise and the Federal Reserve’s hawkish policies made it difficult for growth companies to borrow money, Wood’s portfolio started to take a hit. Relentless losses made it difficult for Cathie Wood to stick to her unprofitable bets for long.

The net portfolio worth of ARK Innovation ETF in March 2022 stood at $13 billion. As of the end of March 2023, the ETF’s portfolio worth fell to $7.4 billion, as Cathie Wood started to sell stocks last year. According to a Bloomberg report, because of selling stocks at a loss, Wood suffered a whopping $2 billion in losses. However, the report added that these losses could lighten the tax bills Wood would receive on future capital gains.

Talking to Bloomberg, Wood said that her flagship fund ARK Innovation ETF reduced its holdings to just 28 stocks from 50 stocks as it started to suffer losses after hitting its peak in February 2021.

Despite the losses, ARK reiterated its optimism in its report for the first quarter of 2023. The firm said that during difficult times, consumers and businesses adopt new technologies faster than they do in normal times, causing a boom for innovative companies. Here’s what the firm said:

“If we are correct in our assessment that growth, inflation, or both will surprise on the low side of expectations, scarce double-digit growth opportunities should be rewarded accordingly. The adoption of new technologies typically accelerates during tumultuous times as concerned businesses and consumers change their behavior much more rapidly than otherwise would be the case. As a result, stocks of innovation-oriented companies tend to perform better and emerge as new market leaders toward the end of a bear market. We believe the coronavirus crisis and Russia’s invasion of Ukraine have transformed the world significantly and permanently, suggesting that many innovation-driven strategies and stocks could be productive holdings during the next five to ten years.”

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