Popular stock picker Cathie Wood said on Sunday she finds Tesla Inc TSLA CEO Elon Musk’s comments on the effectiveness of psychedelics and other plant-based substances as treatments for mental health-related issues an “interesting thesis.”
What Happened: Wood’s firm Ark Investment Management has been building exposure in billionaire entrepreneur Peter Thiel-backed ATAI Life Sciences NV ATAI, a clinical-stage biopharmaceutical company that focuses on the use of psychedelics for the treatment of mental health disorders.
“I’ve talked to many more people who were helped by psychedelics [and] ketamine than SSRIs & amphetamines,” Musk had earlier tweeted in response to a thread discussing “Adderall” and how “prescribed psychedelics could replace amphetamines and SSRIs over the next decade.”
Why It Matters: St. Petersburg, Florida-based Ark Invest has piled a total of 1.6 million shares, worth $6.9 million, in ATAI Life Sciences since the beginning of the year.
The fast-growing psychedelics sector is drawing investor interest with many now listed on the Nasdaq and NYSE.
Price Action: ATAI closed 2.9% lower at $4.3 on Friday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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