Star fund manager Cathie Wood’s flagship fund hits this week and sees large investor outflows amid a sell-off.
Ark Innovation’s shares fell about 3% Thursday, taking their weekly losses above 10%. The Disruptive Innovation ETF rebounded from its February low of last year, a level many investors see as a barometer for the larger tech sector.
Almost $ 770 million left Ark Innovation in the past week. According to FactSet, Ark Invest – including its five core ETFs – has lost around $ 1.1 billion to investors in the past seven days.
Ark Innovation is more than 32% below its February 2021 high, after which the ETF turned on concerns about rising interest rates. Some of Ark Innovation’s top positions were hit with big hits on Thursday. Teladoc Health fell 3.2%. Square and Roku fell 3.4% and 6.6%, respectively. DraftKings was down 7.6%.
Many investors view Woods Fund as a proxy for the market’s pockets of growth. Such weakness without an obvious excuse like rising interest rates could be a matter of concern to certain market participants. Technology stocks also delivered blowout gains last week, but the company’s stocks appeared to have priced in the “good news”.
Wood, as always, remains on track during the weakness of their top names. Ark Innovation bought DraftKings, Twilio, Teladoc Health and Invitae on Wednesday. The Ark Next Generation Internet ETF bought 140,000 shares of Peloton on Wednesday after falling about 15% due to its treadmill recall debacle.
Wood is steadfast in her long-term investment philosophy and uses volatility to double her highest persuasiveness. Ark Invest chief operating officer Tom Staudt told CNBC that Arks “long-term focus allows us to buy when a name has been hit for short-term reasons or sell when a name is exuberant in the short-term.”
Wood’s other ETFs also faced strong selling pressure on Thursday. The Ark Next Generation ETF lost 2.75%, bringing its losses to over 9% since the start of the week. The Ark Genomic Revolution ETF and Ark Autonomous Technology and Robotics ETF fell 2.7% and 0.3%, respectively. The pair is down 10.2% and 4.4% this week alone. The Ark Fintech Innovation ETF fell 2%, bringing its weekly losses to over 6.5%.
The Ark Autonomous Technology and Robotics ETF is Wood’s only green fund for the year.
Cathie Wood will appear on CNBC’s “Closing Bell” Friday at 3pm ET.
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