With Ark Invest becoming a whale in the stock market, managing the largest actively managed ETF and gathering legions of fans, Cathie Wood faces the difficult task of navigating turbulent market waters as the “innovation” stocks she defended on shaky ground stand.
Ark Invest’s assets under management rose to nearly $ 54 billion from about $ 3.9 billion this time around. Wood has her own Reddit fan page after her flagship fund – Ark Innovation – got nearly 150% in 2020.
But the fund lost about 15% this week due to weakness in technology stocks weighed on by rising interest rates. For the second time this year, Wood’s Ark Innovation saw an outflow of $ 465 million on Wednesday.
This troubled week revealed Wood’s strategy: buy the dip on the innovative stocks that brought her here. And despite a tough day of outflows, her investors have shown this week that they are not as fickle as they think and perhaps believe in her long-term philosophy.