ARK Invest, under Cathie Wood, pared back its Tesla stake near its record high, reallocating gains into crypto assets to broaden the portfolio.
Cathie Wood notes that this portfolio rebalance is a disciplined response when one equity surges while another endures pressure, aiming to preserve risk-adjusted returns.
The shift signals active asset allocation across traditional stocks and digital assets, reflecting ARK’s dynamic approach to growth exposure and diversification.
For investors, the takeaway is clear: disciplined rebalancing and cross-asset diversification can help manage drawdowns while seeking upside.