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Wood's Ark Invest nearly liquidates Silvergate Capital position

January 06, 2023 at 11:52 am EST

NEW YORK (Reuters) - Star stock picker Cathie Wood's Ark Invest sold 403,990 shares of embattled crypto-focused bank Silvergate Capital Corp on Thursday as shares in the firm plunged more than 40%, according to disclosures by Ark Invest.

The selling nearly liquidated the firm's share holdings and came from the $645 million ARK Fintech Innovation ETF, and not the firm's flagship $5.9 billion ARK Innovation fund, which does not have a position in the company.

Silvergate Capital said it would cut its workforce by 40% after investors pulled more than $8 billion in deposits in the wake of the collapse of FTX. Total deposits from digital asset customers at Silvergate fell to $3.8 billion at the end of December, compared to $11.9 billion at the end of September.

Ark Invest first bought shares in Silvergate in November, 2019, according to Morningstar data.

Shares of Silvergate were down 9.2% in midday trading on Thursday, while shares of the ARK Fintech Innovation fund were up 0.8%.

(Reporting by David Randall; Editing by Josie Kao)

By David Randall

Stocks mentioned in the article

Add to a list Add to a list 0 selected To use this feature you must be a member Log in Sign up	Price	Change	5d. change	Capi.
SILVERGATE CAPITAL CORPORATION	0.56 USD	-13.85%	+7.69%	20.58M
MORNINGSTAR, INC.	283.2 USD	-0.94%	-0.83%	12.22B
ARK INNOVATION ETF - USD	44.21 USD	-0.38%	+0.87%	6.34B

Cathie Wood

Catherine Duddy Wood is the founder and currently holds the position of Chief Executive Officer & Chief Investment Officer at ARK Investment Management LLC, which was founded in 2013. She is also the founder and CEO and CIO at ARK Ventures, founded in 2014. In addition to her founding positions, Ms. Wood currently holds several other roles. She is a Director at NexPoint Homes Trust, Inc. since 2022, an Independent Director at NexPoint Real Estate Finance, Inc. since 2020, the Executive Director at Wall Street Blockchain Alliance since 2018, a Director at Strange Brewing SA since 2018, a Director at Mimik Technology, Inc., a Director at Vinebrook Homes Trust, Inc. since 2020, an Independent Non-Executive Director at Amun Holdings Ltd. since 2018, an Independent Director at NexPoint Residential Trust, Inc. since 2020, and an Independent Trustee at NexPoint Diversified Real Estate Trust since 2022. Ms. Wood has held several former positions throughout her career. She was a Managing Director at Jennison Associates LLC from 1980 to 1998, a Partner at Tupelo Capital Management LLC from 1998 to 2001, the Chief Investment Officer at AllianceBernstein LP in 2013, and an Assistant Economist at Capital Research & Management Co. from 1977 to 1980. Ms. Wood obtained her undergraduate degree from the University of Southern California in 1981.

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Linked companies
ARK Investment Management LLC	Chief Executive Officer
ARK Ventures ARK Ventures Investment ManagersFinance ARK Ventures (ARK Ventures) is a venture capital subsidiary of ARK Investment Management LLC founded by Catherine Wood. The firm is headquartered in St. Petersburg, Florida.	Chief Executive Officer