Cathie Wood’s Famed Ark Tech Funds Marketing Outperforming Returns Evaporate

    The exceptional gains made by Cathie Wood that turned her fund management firm into one of the most famous active funds are now evaporating quickly as some of her select stocks have tumbled. 

    Reasons for returns evaporating

    Wood, who trounced the market over the years and her recent verbal attack on passive investing, recently saw her flagship fund ARK Innovation ETF set to lose the outperformance it once enjoyed compared to the S&P 500 index

    Woods’s innovative strategy of picking stocks bordered on market disruption faces the tech meltdown as investors exit high-priced stocks with high inflation and high-interest rates ruling the economy. 

    The NAV, or the net asset value of the fund, has grown from $20.12 at inception in October 2014 to $45.59 last Friday, giving a return of 127% as per the firm’s website data.  

    As per the data compiled by Bloomberg, the returns over the same period by S&P 500 were at 136%. 

    On Monday, the fund’s situation became worse when it slumped by nearly 10% compared to the S&P 500 index, which declined by 3%. Cathy Wood’s Company ARK did not respond to the request for comment after Monday’s business hours. 

    The shift in investors’ sentiment against technology stocks has caused a storm for Ark Investment Management LLC’s founder Cathy Wood. The rising interest rates have eaten into equity valuations, whereas economic growth and inflation have cooled the passion for speculation in tech stocks, particularly new companies. 

    Since the peak of last year, the value of the ARK Innovation portfolio has slumped by nearly 70%. 

    However, not all the funds under the ARK umbrella have given up their outperformance.  Smaller funds such as ARK Next Generation Internet ETF have comprehensively beaten the S&P 500 since inception despite tumbling from a high as Bloomberg data. 

    Despite the recent losses, Wood remains committed to the technology sector. In her recent tweets, she has mentioned the potential for stocks like Microsoft Corp and Zoom Video Communications Inc. as the global economy undergoes a massive transformation in the history of technology. 



    RELATED ARTICLES

    Tesla’s Cheapest Cybertruck

    Tesla’s Cheapest Cybertruck Will Cost $60,990 in 2025

    Bloomberg News reports that after two years of delay and production glitches, Tesla Inc. has...
    JPMorgan’s S&P 500

    JPMorgan’s S&P 500 2024 Outlook Grimmest on Wall Street

    Bloomberg News reports that as the strategists on Wall Street are calling for an all-time...
    Fed Will Cut Interest Rates

    Fed Will Cut Interest Rates as Soon, Predicts Bill Ackman

    Bloomberg News reports that Bill Ackman, the billionaire investor, bets that the Federal Reserve will...
    AI Startup

    AI Startup of Google Raises $24 Million for Biotech Work

    Bloomberg News reports that the European biotech startup Cradle has raised as much as $24...
    Quantum Computing Lab

    Quantum Computing Lab Shut by Alibaba in Sign of Broader Cutback

    Bloomberg News reports that Alibaba Group Holding Ltd. has shuttered its quantum computing lab for...
    Water Damage Repairs

    Don’t DIY Water Damage Repairs to Your Business

    If your workplace ever suffers from water damage, you might be tempted to start fixing...
    MBA Programme

    Dual Degree MBA Programme: A Unique Educational Opportunity

    In today's world, professional success requires more than traditional management skills. It calls for a...
    women ipl

    Women IPL Sensation Shreyanka Patil: From Fan to Champion

    In a cricketing universe usually ruled by dudes, Shreyanka Patil, the rookie wonder for Royal...
    Monetize Magnet

    Monetize Magnet Review – The Best Crypto and Forex CPA Network

    In today's world, cryptocurrency has reached new heights, expanding continuously and providing online earning opportunities...
    celsius drink

    Celsius Drink – What Is It and How Safe Is It?

    These days, you must come across your social media feeds with an advertisement for a...
    low porosity hair

    Low Porosity Hair Problem? Slay Locks with Moisture Miracle

    Have you ever experienced your hair being stubbornly resistant to moisture? That's low porosity hair...