Cathie Wood bought the dip in Coinbase and Robinhood stock as Evergrande fears rocked markets

Cathie Wood Ark Invest
Cathie Wood has been trimming Ark Invest’s Tesla holdings.

Cathie Wood hoovered up hundreds of thousands of Coinbase and Robinhood shares on Monday, taking advantage of a sell-off that hit stocks and crypto across the board.

Funds managed by Wood’s Ark Invest bought a combined 404,020 Robinhood shares and 96,251 Coinbase shares as both companies dipped more than 5%. At Monday’s closing prices, the buys represent an additional $22.8 million stake in Coinbase and $16.4 million in Robinhood.

Buying into Monday’s Evergrande-driven sell-off saved ARK investors around $1.5 million when compared to an equivalent buy at Friday’s closing prices.

A buy-the-dip approach has been a key tool in Wood’s investing arsenal. At various points this year, her funds have bought into short-term declines in bitcoin, Peloton, Zoom, and others.

While Wood’s funds have in the past put in a spectacular, market-crushing performance, 2021 has looked less rosy. Ark’s flagship thematic ETF is down slightly on the year, after growing nearly 140% in 2020.

Others have noticed Ark’s weaker 2021 performance, with some skeptics starting inverse-ARK ETFs or outright shorting Wood’s funds.

But Wood has stuck to her guns, arguing that the long-term bull case for US equities is strong.

“When I see such negative sentiment out there, especially when it comes to valuation and longer time horizons, investment time horizons, I actually feel a little more comfortable,” Wood told CNBC in August.

“I like bad news,” she added.