First time in four years! "Cathie Wood" buys Alibaba and continues to increase holdings in Baidu
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Well-known investor "Sister Wood" has rebuilt her position in Alibaba for the first time in four years, while continuing to increase her holdings in Baidu, marking a major strategic shift towards Chinese technology stocks by the fund manager known for aggressive tech investments.
According to a report provided by Cathie Wood's ARK Investment Management, two ARK exchange-traded funds bought about $16.3 million worth of Alibaba's American Depositary Receipts (ADR) on Monday. This investment coincided with Alibaba's share price soaring to its highest level since November 2021, with gains nearly doubling year-to-date.
Investors have high expectations for Alibaba's push into artificial intelligence, believing it could revive its growth momentum, especially against the background of its core e-commerce business facing challenges from competitors like Pinduoduo.
ARK's investment history in Alibaba can be traced back to 2014, shortly after the company's IPO in the United States. According to the SEC’s search tool, ARK continuously invested in Alibaba until September 2021.
Afterwards, SEC records show ARK had no further investment or proxy voting records related to Alibaba, and this dormant period lasted four years. The re-entry indicates that "Sister Wood" may be reassessing the investment value of Chinese tech stocks.
Meanwhile, ARK continued to increase its holdings in Baidu, bringing the total value of this position to about $47 million. This suggests that "Sister Wood" is repositioning in Chinese tech stocks, particularly those focused on artificial intelligence.
This investment strategy is highly consistent with ARK’s focus on disruptive technologies. Investors are optimistic about Alibaba and Baidu’s layout in the AI field, believing AI technology could become a new growth engine for these companies.
The ARK team wrote in a recent update: "AI is the next wave of innovation, and companies leading in this field may achieve exponential growth." This explains why "Sister Wood" chose to reposition in Chinese AI concept stocks at this point in time.
It is worth noting that Wood is widely known for her aggressive investments in disruptive technology. Although her flagship fund ARKK has achieved a 49% return so far this year, its five-year performance remains negative, and it has seen an outflow of $438 million this year.
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