Now that Ark Invest has become a whale in the stock market, guarding the largest ETF it actively manages and gaining legions of fans, Cathie Wood faces the daunting task of navigating the messy waters of the market , as the innovation actions he advocates are unstable terrain.
Ark Invest’s managed assets rose to about $ 54 billion, up from $ 3.9 billion this time last year. Wood has its own Reddit fan page after its flagship fund, Ark Innovation, returned close to 150% in 2020.
But the fund lost about 15% this week amid weak technology stocks pressured by rising interest rates. For the second time this year alone, Wood’s Ark Innovation saw a $ 465 million outflow on Wednesday.
This tough week revealed Wood’s strategy: buy the deposit on the innovative stocks that got it here. And despite a tough day of departure, this week has shown that its investors are not as volatile as they are perceived and that they can also believe in their long-term philosophy.