Ark Invest continues to get in the news almost daily because of its five-fold return in the last few years. Recent trades look more speculative. Also, the under-performance is shaking investor confidence. The fund lost $1 billion in redemptions.
Despite fearful investors selling when ARK underperformed, the actively-managed ETF has some compelling buys.
Coinbase Global (NASDAQ:COIN) is a cryptocurrency platform. It recently added support for Dogecoin, which will facilitate crypto buy/sell transactions. ARK has a 4.6% weighting in Coinbase as of last week.
Tesla (NASDAQ:TSLA) is a 10% weighting in the fund. Bears tried but failed, to bet against Tesla, citing valuation. Yet Tesla may raise money anytime it needs it. Its gutsy bitcoin investment earlier this year paid off when the currency rose.
Roku’s (NASDAQ:ROKU) strong weighting is a vote of confidence for the streaming service. Roku reported weakening user growth. The stock indicated a $475 “double top” on the stock chart. Last week, ROKU stock found support at around $400, at its 50-day simple moving average.
Teladoc (NYSE:TDOC) has the least downside risk. The stock lost half of its value after closing the Livongo acquisition. Markets are fearful that telemedicine is a fad that is losing users. With the medical system strained, hospitals and doctor offices busy, Teladoc is filling a gap in the space.
