Ark Investment Management made another major move on Wednesday, using multiple funds to purchase a total of 122,807 shares of Musk's SpaceX.
A large chef just ordered a very large shipment.
Picture a well-known head chef who has cooked at the same restaurant for twenty years. One morning she places an unusually large order for a single ingredient - ten times her normal amount. You do not know exactly what dish she is planning, but you do notice: she thinks highly of that ingredient right now. That is the situation with Cathy Wood, the founder of Ark Investment Management, sometimes called the "Goddess of Stock" by followers in Asia.
On Wednesday, Ark used four of its funds - ARKK, ARKQ, ARKW, and ARKX - to buy 122,807 shares of SpaceX. At the closing price of $135.27 that day, the total purchase was worth approximately $16.6 million. That is one deliberate, co-ordinated bet across multiple funds at once.
Knowing that a well-known professional bought something is not a reason to copy them. Their budget, timeline, and risk appetite are completely different from yours. What it does tell you is that someone with a long track record in technology investing saw enough reason to act at that specific price.