Now that Ark Invest has become a whale on the stock market, managing the largest actively managed ETF and gathering legions of fans, Cathie Wood is facing the difficult task of navigating the turbulent waters of the market as stocks “ innovation ”he claims is facing shaky ground.
Ark Invest’s assets rose to nearly $ 54 billion from about $ 3.9 billion this time last year. Wood has its own Reddit fan page after its flagship fund – Ark Innovation – returned by almost 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, Wood’s Ark Innovation posted $ 465 million in outflows on Wednesday.
This tough week revealed Wood’s strategy: Buy the drop in innovative stocks that brought her here. And despite a difficult day of outflows, this week has shown that its investors are not as volatile as they perceive them and could believe in its long-term philosophy.