Longtime SpaceX Investor Cathie Wood Made This Move on IPO Day. Should You Follow?

Cathie Wood, the laminitis of Ark Invest, is known for her enactment of Elon Musk's innovations and ambitions. Wood's biggest holding successful the flagship Ark Innovation money is Tesla, and SpaceX (NASDAQ: SPCX) is the apical holding successful the Ark Venture fund. Musk is the main enforcement serviceman of some companies.

It's not astonishing that Wood holds shares of Musk-led companies due to the fact that her concern strategy involves getting successful connected innovators aboriginal -- earlier they execute large goals. Wood has spoken astir the committedness of robotaxis arsenic a maturation motor for Tesla. As for SpaceX, Ark wrote anterior to its IPO: "The existing concern segments, astatine their existent trajectories, are plentifulness capable to warrant a compelling concern case."

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Wood's SpaceX holding, done the Ark Venture Fund, took spot successful the backstage market, arsenic the company's valuation climbed from $350 cardinal successful 2024 to the existent valuation of much than $2.1 trillion. The banal began trading connected June 12, aft raising $75 cardinal successful the world's biggest IPO connected record.

So, present you mightiness wonder: What determination did Wood marque connected IPO day? Let's find out, and see if you should follow.

SpaceX lockup restrictions

First, it's important to enactment that Wood can't merchantability SpaceX shares instantly due to the fact that she is restricted by a lockup period. During this period, aboriginal investors successful the institution aren't allowed to merchantability their shares. Often, lockup periods span the archetypal 90 to 180 days aft the IPO. The thought is to forestall a large fig of shares from flooding the marketplace successful a abbreviated play of clip arsenic immoderate of the company's archetypal supporters fastener successful immoderate gains.

SpaceX enactment into spot a tiered lockup docket truthful that aboriginal investors whitethorn merchantability a definite percent of their shares astatine assorted intervals. The archetypal comes aft the second-quarter net study successful precocious July.

So, it's wide that, connected IPO day, Wood didn't merchantability her SpaceX shares. But she didn't stay inactive either. In fact, Wood took the accidental to increase her concern successful the concern and exertion player. She added the banal to 4 of her six actively managed exchange-traded funds (ETFs).

Here are the circumstantial moves Cathie Wood made:

• Ark Innovation bought 1,690,839 shares of SpaceX. The banal present has a 3.2% value successful the fund.

• Ark Autonomous Technology bought 736,442 shares of SpaceX. It has a 4.5% value successful the fund.

• Ark Next Generation Internet bought 325,562 SpaceX shares. The banal accounts for 2.6% of the fund.

• Ark Space and Defense bought 538,341 SpaceX shares. That's for a 6.8% weighting.