ARK Invest ‘buys the dip’ at DraftKings following short seller broadside

ARK Invest, the fund run by star stock picker Cathie Wood, swooped at an opportunity to ‘buy the dip’ in shares of DraftKings Inc (NASDAQ:DKNG) after the fantasy sports firm saw its stock price knocked by a broadside from short seller Hindenburg Research. The firm found itself under pressure after Hindenburg released a report on Tuesday stating that it had taken a short position against the company and questioned the source of revenues for its subsidiary SBTech. The company has denied the content of the report. READ: The power and influence of ARK Innovation ETF and Cathie Wood's range of active ETFs The report also went on to say that several industry experts and competitors interviewed by Hindenburg had taken issue with some aspects of DraftKing's business model and the loyalty of its customers. Hindenburg’s broadside sent DraftKings’ shares sliding, with the company ending Tuesday’s session 4.2% lower at US$48.51. However, ARK pounced at the chance to snap up stock in the firm at a discount price, buying 870,299 shares on Tuesday during DraftKing’s slump. On Wednesday, it seemed as if ARK’s bet had provided a confidence boost for the shares, which were up 0.7% at US$48.85 in pre-market trading.