Famous ETF investor and manager Cathie Wood joined Scott Wapner and Bob Pisani in CNBC’s “Break Report” on Wednesday to share views on some holdings in their funds.
Tesla Wood: Wood has been a remarkable bull in Tesla Inc (NASDAQ: TSLA) and remains the largest share in the subscription Ark Innovation ETF (NYSE: ARKK).
“Our confidence in Tesla has grown,” said Wood. The fund manager said that no one is modeling Tesla’s shareholding potential by forecasting revenue and price targets. Travel sharing can be more profitable for Tesla than electric vehicles.
Related link: 7 actions that fit Cathie Wood’s great ideas for 2021, can be added to Ark ETFs
Bitcoin wood: Wood has been optimistic about Bitcoin recently reaching the increase in valuation that could be seen if each S&P 500 company allocated 1% of the money to the cryptocurrency.
“Now we have individuals who really understand,” said Wood of Gary Gensler, the new president of the United States SEC.
Gensler taught a class on blockchain and Bitcoin at MIT and understood the technology and evaluation, Wood added.
THE Grayscale Bitcoin Trust (OTC: GBTC) is a popular option for investors in the U.S. to gain exposure to Bitcoin, as no ETF is currently available. Wood said the likelihood of a Bitcoin ETF increases with the new administration’s understanding of the cryptocurrency.
The fund manager praises companies like Tesla and Square Inc (NYSE: SQ) who are “on the right side of change” adding Bitcoin and diversifying their cash holdings.
Wood in telemedicine: One of the biggest holdings in Ark ETFs is Teladoc Health (NYSE: TDOC). The telemedicine company is owned by ETF Ark Innovation, Ark Genomic Internet ETF (BATS: ARKG) and Ark Next Generation Internet ETF (NYSE: ARKW).
“We had a great opportunity to buy Teladoc when home inventories flattened out,” said Wood.
Although the shares rose 40% in 2021, Wood remains optimistic and thinks the company has been hurt by the public sentiment of the acquisition of Livongo.
“This is a beautiful acquisition for Teladoc,” said Wood, adding that the two companies will create data power together.
Wood in SPACs: The Ark fund manager added several SPACs to the portfolio recently, including some that completed mergers and others as Investment experience (NASDAQ: EXPC) that are in the process of merging.
Wood named DraftKings Inc (NASDAQ: DKNG), Skillz (NYSE: SKLZ) and Butterfly Network Inc (NYSE: BFLY) as former Ark-owned SPACs.
“We are investing in them,” said Wood of SPACs. “We are being very careful.”
Wood said the fund is selective and does not like the incentive structure of some SPACs. The fund manager noted that SPACs continue to be a way for public markets to invest in some growth before the traditional IPO route.
Space ETF: Wood is launching a space ETF under Ark funds soon.
Due to a period of silence with the SEC, Wood was unable to discuss specific space actions, but he was optimistic about the industry in general. She called space exploration the right side of change.
“We see SpaceX, Blue Origin pushing the limits,” said Wood of private companies. She highlighted the work that Elon Musk, Jeff Bezos and Richard Branson did in the space industry.
Rocket launch costs are falling dramatically, which could lead to strong industry growth, according to Wood.
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