Tuesday marked a five-year low for Cathie Wood’s ARK Innovation exchange-traded fund. ARK Investment managed $50 billion of assets as of February 2021. After a period of poor performance, assets dropped to $15.9 Billion by May 2022.
Tuesday’s drop of 0.7% to $31.97 by the fund, known as ARKK and its ticker symbol ARKK was the lowest since August 2017. ARKK is now down 79% from its record high.
Many investors purchased the dip in Ms. Wood’s funds earlier in the year, only for it to be resold, resulting in further losses.
Recent months have seen a decrease in enthusiasm. According to FactSet, Monday’s net outflow of $126 million by investors was the largest since Nov. 30, the biggest outflow since Nov. 30.
ARK Invest focuses its investment on disruptive technology. These technologies include artificial intelligence and DNA sequencing, CRISPR gene editing, robotics, energy storage, fintech 3D printing, blockchain technology, and energy storage. It also invested in cryptocurrency.
The company invests in stocks expected to double in value in five years. Ark innovation ETF is now down 63% in 2022 and 78% since its peak in February 2021. Wood defended her strategy, noting that she has an investment horizon of five years.”
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