Source: Wall Street News
This year, investors made a net withdrawal of $2.2 billion from ARK's six actively managed ETFs. This figure far exceeds the total net divestment for the whole of 2023.
Investors in “Cathie Wood” Cathy Wood's ARK Fund are voting with their feet and are selling off one after another.
This year, investors made a net withdrawal of $2.2 billion from ARK's six actively managed ETFs. This figure far exceeds the total net divestment for the whole of 2023. The total assets of these funds have shrunk 30% in less than four months and have now fallen to US$11.1 billion. At the peak in early 2021, their assets reached US$59 billion. At the time, ARK was also the largest active ETF management company in the world.
During the pandemic, “Cathie Wood” made bold bets$Tesla (TSLA.US)$Disruptive tech stocks such as Zoom, and Roku became popular on social media, and investors poured into her fund and made huge profits. Even after the Fed's interest rate hike caused the fund's performance to reverse, they chose to stick to it. However, after years of huge losses, many investors can't stand it now.
Todd Rosenbluth, head of research at data provider Vettafi, said, “This year's market style was supposed to be more suitable for ARK, a fund that invests in growing and disruptive technology companies, but they made the wrong bet on the company in this race.”
According to the data, the stock price of ARK Innovation Fund, a subsidiary of “Cathie Wood Tou”, has dropped 16% this year. According to some analysts, this also has a lot to do with her strategy of investing too much in a few stocks. For example, about 50% of the ARK Innovation Fund's share consists of seven stocks. Among them, Tesla, the largest holding stock, fell by more than 40% this year, and the current trading price is about 144 US dollars. However, “Cathie Wood” continues to increase her positions and reiterated in an interview earlier this month that she sees Tesla's stock price as high as 2,000 US dollars.
Other major holdings of ARK Innovation Fund, such as Roku, fell 33% this year and Unity Software fell 44%, which also dragged down the fund's overall performance.
In addition, Cathie Wood also hit the ground perfectly$NVIDIA (NVDA.US)$Her fund sold all of Nvidia's holdings in January 2023, and since then Nvidia's stock price has roughly quadrupled.
By the end of last year, according to Morningstar, ARK Fund had destroyed more wealth than any other asset management company in the past decade, causing investors to lose a total of $14.3 billion.
editor/tolk