Cathie Wood, head of Ark Investment Management, tends to trim positions after big runs and add on pullbacks, a strategy she applies not only to smaller bets but also to her top holdings.

Last week, Wood unloaded some Tesla shares, securing $40 million in gains. She recently did some notable buying of another top holding of Ark that’s been struggling.

Wood gained a reputation after the Ark Innovation ETF delivered a 153% return in 2020. Year to date, the flagship Ark Innovation ETF (ARKK) is up 39.39% as of Dec. 19, far outpacing the S&P 500’s gain of 16.2% in the same period.

Wood’s style brings sweet wins in rising markets but also painful losses in bearish ones, as seen in 2022, when the Ark Innovation ETF tumbled…