ARK Invest, the US-based asset manager known for its high-conviction bets on disruptive innovation, has sold its entire positions in Teradyne, Iridium Communications, and Twist Bioscience, according to daily trade disclosures. The sales were executed across several of ARK's exchange-traded funds, including the flagship ARK Innovation ETF (ARKK) and the ARK Autonomous Technology & Robotics ETF (ARKQ).
Teradyne, a manufacturer of automated test equipment for semiconductors, had been a staple in ARK's portfolio for years, reflecting Cathie Wood's bet on the chip sector's expansion. Iridium Communications, which operates a constellation of low-earth-orbit satellites, was also a long-term holding. Twist Bioscience, a synthetic biology company focused on DNA writing, was a more recent addition. The decision to exit all three suggests a strategic pivot away from these specific sub-sectors.
Market observers note that Teradyne has faced headwinds from a cyclical downturn in semiconductor demand, while Iridium's share price has been volatile amid competition from larger satellite operators. Twist Bioscience, though promising in the long run, has yet to achieve consistent profitability. ARK's move may indicate a desire to reallocate capital into names with stronger near-term catalysts, such as Tesla or Coinbase, both of which remain core holdings.
For UK investors, the sell-off is a reminder of the high turnover and concentrated risk in ARK's strategy. Many British retail investors hold ARK ETFs through platforms like Hargreaves Lansdown or Interactive Investor, drawn by Wood's stellar returns during the pandemic. However, the fund has underperformed the S&P 500 significantly since 2021, and these latest disposals could add to volatility.
Analysts at Morningstar have cautioned that ARK's active management style means frequent portfolio changes, which can lead to higher trading costs and tax implications for UK holders. 'Investors should not read too much into any single trade, but the pattern of selling long-held names suggests a lack of conviction in those specific stories,' said one analyst. 'It is worth reviewing your own exposure to ensure it aligns with your risk tolerance.'
Source: ARK Invest Daily Trade Disclosure