ARK Buys $16.3 Million in Alibaba ADRs
On Monday, September 22, ARK disclosed that two of its exchange-traded funds—ARKW (Next Generation Internet ETF) and ARKF (Fintech Innovation ETF)—purchased a combined $16.3 million worth of Alibaba American Depositary Receipts (ADRs).
The move marks ARK's first renewed position in Alibaba since 2021, when the firm had effectively exited the stock. Public filings show that ARK first bought Alibaba shares shortly after its 2014 IPO, adjusting its exposure several times in the years that followed. By September 2021, however, the company had eliminated its holdings, with no further proxy voting records or SEC filings tied to Alibaba until now.
Alibaba Stock Nears Four-Year Highs
The timing of Wood's return coincides with a strong rebound in Chinese tech stocks. Alibaba’s ADRs surged to their highest level since November 2021 on Tuesday, nearly doubling in value year-to-date.
The rally has been broad-based. The Nasdaq Golden Dragon China Index, which tracks U.S.-listed Chinese companies, has been climbing steadily since September. Other major Chinese internet names, including Baidu, have also staged significant rebounds.
Why Now?
Market observers suggest Wood's renewed interest in Alibaba reflects both improving sentiment toward Chinese equities and ARK's opportunistic trading style. After years of regulatory crackdowns and geopolitical headwinds, investors are cautiously returning to Chinese internet stocks as valuations look more attractive and earnings momentum improves.
Still, ARK's funds are known for their high turnover rates. A purchase doesn't necessarily signal a long-term conviction. Wood has often rotated in and out of positions quickly, depending on market conditions and thematic shifts. Whether Alibaba becomes a core holding or just a tactical trade remains an open question.
Context: ARK's Broader Strategy
ARK Investment Management has built its reputation on backing disruptive innovation, from Tesla to CRISPR gene-editing firms. While Chinese internet companies haven't been a consistent part of ARK’s portfolio in recent years, Wood's decision to re-engage with Alibaba suggests she sees renewed potential in the sector—or at least a short-term opportunity to ride the momentum.
For Alibaba, the endorsement comes at a time when the company is trying to reassert its dominance in e-commerce while expanding into cloud computing, logistics, and artificial intelligence.
The Bottom Line
Cathie Wood's $16.3 million bet on Alibaba marks her first move back into the Chinese tech giant since 2021. The purchase aligns with a broader rebound in Chinese concept stocks, but given ARK's trading style, it's unclear how long the position will last.
For investors, the takeaway is twofold: Alibaba's resurgence is drawing attention from high-profile names again, but as always with ARK, today's buy could just as easily be tomorrow's sell.