Cathie Wood's Ark Investment Management has purchased $46 million worth of Robinhood Markets shares, acquiring 608,483 shares on February 11-12. This move comes as Wood's flagship Ark Innovation ETF faces a 9.79% year-to-date decline, underperforming the S&P 500's modest 0.14% loss.

Wood's investment strategy often involves buying her top holdings during market downturns, hoping to capitalize on what she sees as temporary weakness. Her approach has delivered dramatic results, with the Ark Innovation ETF gaining 153% in 2020 but tumbling more than 60% in 2022. Over the past five years through February 13, the ETF has delivered a -14.67% annualized return, significantly underperforming the S&P 500's 13.33% annualized gain.

Wood's Robinhood purchase follows the company's mixed fourth-quarter earnings report, where revenue of $1.28 billion missed Wall Street expectations of $1.34 billion. The fintech firm's stock has dropped 32.8% year-to-date, closing at $75.97 on February 13. Despite the recent weakness, Robinhood remains Wood's seventh-largest holding in the Ark Innovation ETF, accounting for roughly 4% of the fund's portfolio.