For the first time in four years! "Wooden Sister" buys Alibaba and continues to increase holdings in Baidu

Wallstreetcn
2025.09.24 00:46
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Recently, ARK's two ETFs, led by Cathie Wood, purchased approximately $16.3 million worth of Alibaba American Depositary Receipts (ADRs), marking the first repurchase of Alibaba in four years, while continuing to increase their holdings in Baidu, bringing the total value of their positions to about $47 million. The ARK team wrote in a recent update: "AI is the next wave of innovation, and companies leading in this field may achieve exponential growth."

Famous investor "Cathie Wood" has re-entered Alibaba for the first time in four years, while continuing to increase her holdings in Baidu, marking a significant strategic shift for this fund manager known for her aggressive technology investments in Chinese tech stocks.

According to a report from ARK Investment Management, led by "Cathie Wood," on Monday, ARK's two exchange-traded funds purchased approximately $16.3 million worth of Alibaba American Depositary Receipts (ADRs). This investment coincides with Alibaba's stock price soaring to its highest level since November 2021, nearly doubling in value year-to-date.

Investors have high hopes for Alibaba's advancements in artificial intelligence, believing this could revitalize its growth momentum, especially in the context of challenges from competitors, including Pinduoduo, in its core e-commerce business.

ARK's investment history in Alibaba dates back to 2014, shortly after the company's IPO in the U.S. According to the search tool of the U.S. Securities and Exchange Commission (SEC), ARK continued to invest in Alibaba until it stopped in September 2021.

Since then, SEC records show no further investments or proxy voting records related to Alibaba from ARK, marking a four-year period of silence. This re-entry indicates that "Cathie Wood" may be reassessing the investment value of Chinese tech stocks.

Meanwhile, ARK continues to increase its holdings in Baidu, raising the total value of this position to approximately $47 million. This suggests that "Cathie Wood" is repositioning herself in Chinese tech stocks, particularly those focused on artificial intelligence.

This investment strategy aligns closely with ARK's focus on disruptive technologies. Investors are optimistic about Alibaba and Baidu's positioning in the artificial intelligence sector, believing that AI technology could become a new growth engine for these companies.

The ARK team wrote in a recent update: "AI is the next wave of innovation, and companies leading in this field may achieve exponential growth." This explains why "Cathie Wood" chose to reposition in Chinese AI concept stocks at this time.

It is worth noting that Wood is widely known for her aggressive investments in disruptive technologies. Although her flagship fund ARKK has a return rate of 49% this year, its five-year performance remains negative, and it has faced an outflow of $438 million this year

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