During the global stock market's 'Black Monday', Cathie Wood, the head of ARK Invest and known as the 'female Buffett', took the opportunity to buy technology stock in the midst of the market's turbulence.

As we all know, Wood likes to buy low when her favorite stocks experience a drop. However, this time she did not only buy shares of small companies she usually favored.

ARK Innovation ETF usually buys stocks in high-tech emerging companies such as AI, blockchain, DNA sequencing, energy storage, and robotics. The volatility of these stocks is high, hence the value of the Ark Fund tends to fluctuate.

It is reported that Woody Sister's flagship product$ARK Innovation ETF (ARKK.US)$bought stocks of Amazon$Amazon (AMZN.US)$Nvidia semiconductor$AMD.US$and Roku$Roku Inc (ROKU.US)$, while its FinTech fund bought Reddit $Reddit (RDDT.US)$ and Meta. $META.US$.

It is worth mentioning that Amazon's stock price has fallen over 18% in the past month, and Wood considers it cheap. Earlier, Amazon's Q2 financial report was 'disappointing': while the profit and cloud computing sales for the quarter exceeded expectations, the company's outlook for the next quarter disappointed investors.

This has raised doubts about whether the huge investment in AI can really produce corresponding returns. In the first half of this year, Amazon spent $35 billion in capital expenditures, such as data centers in its web services cloud department, and will increase it in the second half of the year.

On Monday, Wood purchased 176,963 shares of Amazon stock. At the closing price that day, the value was about $28.5 million.

ARKK has been plummeting.

Due to Wood's unique investment philosophy, ARKK not only missed Nvidia's huge returns but also most of the dividends brought by the AI boom.$NVIDIA (NVDA.US)$This actively managed fund closed at its lowest level since November last year on Wednesday. ARKK has fallen more than 20% this year, and its value has evaporated by about 75% from the peak in early 2021.

This actively managed fund closed on Wednesday at its lowest level since November last year. ARKK has fallen by more than 20% this year and its value has evaporated by about 75% from its peak at the beginning of 2021.

Todd Sohn, ETF strategist at Strategas, said, "The past few years have been a challenge for ARKK." Regarding this week's bargain-hunting, he commented, "ARK has always had a history of high conviction, concentrated investment through ETFs-the team has a tendency to increase its long-term exposure to its own preferences by taking advantage of significant market sell-offs."

In 2020, in a year of strong performance for tech stocks, Wood's ARKK fund rose 150%, winning a group of followers among retail investors. Despite the ups and downs in the subsequent years, including losses in 2021 and 2022, investors have remained steady for a period of time, investing in this ETF month after month. However, this enthusiasm is dissipating.

As of the close on Tuesday, investors have withdrawn $2.2 billion from ARKK so far in 2024, putting the fund on track for its worst year of outflows since its inception in 2014. In addition, according to data compiled by Strategas, a total of 7 active funds in her ETF product line have seen a combined outflow of $11.5 billion since the beginning of 2021.

Editor/ping