Cathie Wood sells $4M of Tempus AI shares after nearly 30% rally

The healthcare AI stock became the second-largest holding in Wood’s fund after its sharp rise.

Cathie Wood is selling shares of Tempus AI after the healthcare AI stock surged nearly 30% in a matter of days, Yahoo Finance reported.

Tempus AI had become the second-largest holding in Wood’s Ark fund before the sale. Wood is known for trimming major winners after sharp rallies.

The Ark Innovation ETF gained 35.49% last year, compared with a 17.88% return for the S&P 500. As of Aug. 26, the fund was up 10.16% for the year, while the S&P 500 had gained 12.13%, according to Yahoo Finance data.

Over the five years through Aug. 26, the Ark Innovation ETF delivered an annualized return of negative 6.21%, compared with 11.42% for the S&P 500, according to Morningstar data.

Wood remains optimistic about artificial intelligence and says companies that use AI effectively will separate themselves from those that do not. Her fund has also faced significant losses, including a decline of more than 60% in 2022.

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