Ark Invest, the asset manager led by Cathie Wood, moved its portfolio again by increasing its exposure to Circle Internet Group and Block Inc., while reducing its stake in Robinhood Markets. The transactions are part of the rebalancing strategy of the ETFs managed by the firm and took place at a time of significant adjustments in stocks linked to the cryptocurrency and financial technology sector.
According to the latest trading report, the asset manager acquired 220.012 shares of Circle through the ARK Innovation (ARKK), ARK Next Generation Internet (ARKW), and ARK Fintech Innovation (ARKF) ETFs. Considering the closing price of US$ 63,22 recorded on Tuesday, the purchase represents approximately US$ 13,9 million.
Despite Ark Invest's new investment, Circle shares have remained under pressure in recent weeks. Although they ended the trading session up 0,35%, the stock still accumulates a decline of more than 24% over the past month. The weaker performance came after the launch of the Open USD project, which raised concerns about competition in the segment in which the company operates.
Even as part of the market maintains a positive view of the company, some analysts have started to revise their projections. Among them is Mizuho bank, which downgraded its recommendation for Circle shares from neutral to underperform. In addition, the institution cut its price target from US$ 85 to US$ 50, arguing that Open USD may affect the company's growth prospects in the coming years.
Ark Invest also strengthened its position in Block Inc., a fintech focused on financial solutions and blockchain, co-founded by Jack Dorsey. Through the ARKW and ARKF funds, the asset manager acquired 19.029 shares of the company in a transaction valued at approximately US$ 1,52 million. Block shares ended the session up 1,61%, quoted at US$ 79,99.
In the opposite direction, the asset manager reduced its exposure to Robinhood Markets. A total of 27.742 shares of the brokerage were sold, moving around US$ 3,15 million. The sale took place after the shares advanced 3,27% in the trading session, closing at US$ 113,45.
The adjustments are part of the policy adopted by Ark Invest for its ETFs. The company seeks to prevent any individual asset from representing more than 10% of a fund's portfolio. In this way, whenever certain stocks register significant price fluctuations, the asset manager carries out purchases and sales to keep the distribution of investments within the limits defined by its management strategy.