Star fund manager Cathie Woods ‘flagship fund is hit this week and sees large investors’ outflows in the middle of a sale.
The shares of ARK Innovation have fallen by a further 3% on Thursday, bringing its weekly loss to almost 10%. The ETF with “disruptive innovation” jumped from the February low the year before in the session, a level that many investors see as a barometer of the larger technology sector.
Nearly $ 770 million has left Ark Innovation in the last week. Ark Invest ̵
Ark Innovation is more than 32% lower than the high in February 2021, after which the ETF sprouted concerns about rising interest rates. Some of Ark Innovation’s top stocks took big hits on Thursday. Teladoc Health fell 3%. Square and Roku fell 3% and 8%, respectively. DraftKings fell almost 8%.
Many investors view Woods funds as a proxy for the market’s growth pockets. Weakness of this kind in the absence of an obvious excuse as rising rates can be of concern to some market participants. Plus, technology stocks delivered blowout earnings last week, yet the company’s stocks seemed to have the “good news” priced.
Wood, as usual, keeps the course under the weakness of her top names. Ark Innovation acquired DraftKings, Twilio, Teladoc Health and Invitae on Wednesday. The Ark Next Generation Internet ETF bought 140,000 shares of Pelton on Wednesday after falling about 15% due to its treadmill recall.
Wood is steadfast in its long-term investment philosophy and leverages volatility to double its highest conviction choices. Ark Invest Chief Officer Tom Staudt has told CNBC that Ark’s “long-term focus allows us to buy if a name has been hit for short-term reasons or sell if a name is up for short-term abundance.”
Woods’ other ETFs also experienced intense selling pressure on Thursday. Ark Next Generation ETF lost 2.5%, bringing its weekly losses to nearly 9%. The Ark Genomic Revolution ETF and the Ark Autonomous Technology and Robotics ETF lost 2.8% and 0.2%, respectively. The pair has fallen 10.3% and 4.3% this week alone. Ark Fintech Innovation ETF fell 1.6%, bringing its losses for the week to more than 6%.
Ark Autonomous Technology and Robotics ETF is Wood’s only fund in the green for the year.
Cathie Wood will appear on CNBC’s “Closing Bell” on Friday at 15.00 ET.
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