Cathie Wood’s Ark funds buy Reddit stock on first day of trading

Cathie Wood’s Ark Invest bought nearly 10,000 shares of Reddit on the social media stock’s first day of trading. Ark’s daily trade update shows that the Next Generation Internet ETF (ARKW) fund scooped up 5,914 shares of Reddit, while the Fintech Innovation ETF (ARKF) added 4,068 shares. The total value of the combined stake of those funds is about $503 million, based on Reddit’s closing price of $50.44 per share on Thursday. It is unclear exactly how much Ark paid for those shares. The Reddit IPO was priced at $34 per share, and trading opened Thursday at $47 per share. Reddit is a minor position in both ARKW and ARKF. Notably, the firm did not add Reddit to its flagship Innovation ETF (ARKK) . Wood rose to prominence in 2020 and 2021 as her aggressive growth investing style seemed well suited for the pandemic era boom for the stock market. However, Ark’s funds struggled when the markets pulled back in 2022, and the the flagship fund has underperformed the Nasdaq 100 during the rally over the past 12 months.