Cathie Wood Cashes Out $6M from 2024’s Top Stock

• Cathie Wood’s Ark Innovation ETF (ARKK) sold 430,483 shares of SoFi Technologies (SOFI) for $6 million on February 25, following earlier February sales of 232,032 shares for $3.4 million and a total of 3.2 million shares in Q4 2024, per Ark’s 13F filing.
• SoFi’s stock surged 85% in 2024 driven by a $2 billion loan platform deal with Fortress Investment Group announced on October 14, enhancing its lending capabilities.
• Investor optimism after Trump’s November election victory boosted SoFi amid expectations of a less restrictive regulatory environment, though Wood’s sales suggest a strategic shift despite the fintech’s strong performance.

Cathie Wood’s Ark Innovation ETF (ARKK) has been steadily offloading shares of SoFi Technologies (SOFI), with a recent sale on February 25 of 430,483 shares valued at approximately $6 million, reflecting a broader pattern of divestment in the San Francisco-based fintech company. Earlier in February, Wood executed two additional transactions, selling 232,032 shares for $3.4 million on February 11 and 12, and according to Ark Investment’s 13F filing, her funds shed a total of 3.2 million SoFi shares in the fourth quarter of 2024. This unloading comes after SoFi’s impressive 85% stock climb in 2024, a surge largely fueled by developments in late fall.

SoFi’s growth trajectory has been bolstered by strategic expansions beyond its origins in student loan refinancing into a trio of segments: lending, encompassing student, personal, and home loans; financial services; and a technology platform supporting fintech solutions. A pivotal moment arrived on October 14, when SoFi unveiled a $2 billion loan platform business agreement with Fortress Investment Group affiliates, aimed at scaling its personal loan offerings. The company stated, “The agreement will expand SoFi’s capabilities in its loan-platform business,” a move that Keefe, Bruyette & Woods analysts praised as a sign of strengthening investor confidence in SoFi’s loan products, contributing to the stock’s October and November surge.

The fintech’s performance also intersects with broader market dynamics, notably the optimism following Donald Trump’s November presidential election victory, which sparked investor hopes for a lighter regulatory touch on financial services, potentially benefiting companies like SoFi. Wood’s decision to sell, however, suggests a strategic rebalancing or profit-taking by Ark, known for its aggressive bets on disruptive technologies, even as SoFi demonstrates resilience and adaptability in a competitive sector. The $6 million and $3.4 million sales in February, alongside the 3.2 million shares divested in Q4, indicate a significant reduction in Ark’s stake, though the precise motivations – whether skepticism about sustained growth or a shift in portfolio focus – remain unstated. SoFi’s 85% gain in 2024 underscores its appeal amid fintech evolution, yet Wood’s moves highlight the nuanced calculus of investment timing in a volatile market.

WallStreetPit does not provide investment advice. All rights reserved.