Cathie Wood, CEO and Chief Investment Officer of ARK Investment Management LLC, will speak at the Sooner Than You Think Conference in Brooklyn, New York, on Tuesday, October 16, 2018.
Alex Flynn | Bloomberg | Getty Images
Star Manager Cathie Wood’s flagship fund, Ark Innovation, was hit by growth stocks sold out on Tuesday.
Ark Innovation Alongside the 2.5% fall in the Nasdaq Composite, it fell 4.8% in the noon trade on Tuesday. “Destructive Innovation” funds fell by more than 7.5% this week and by more than 10% in 2021, while S & P 500 increased by more than 10% this year.
The fund fell 30% off its highs in February of this year, after which ETFs were threatened with rising interest rates.
“High-tech stocks are very crowded,” said Stephanie Link, chief investment strategist at Hightower.Half-time report.. “There will be very strict comparisons going forward. But the valuation is also. If GDP growth is high and inflation is a bit high, a high valuation won’t work.”
Some of Ark Innovation’s top holdings were big hits. Tesla Lost more than 3%, Terra Dock Health It decreased by 5.8%. square And Roku It decreased by 5.8% and 6.7%, respectively. Zillow Group Soaked 5% or more.
It’s hard to pinpoint the exact reason for selling tech stocks this week, interest rates remain low, and the sector is losing a week’s explosive earnings. Investors have the potential to benefit the biggest winners since the pandemic slump and turn to more utilized ones for reopening.
In addition, the threat of capital gains tax hikes may not have helped emotions.
Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC that investors could be increasingly disappointed that stocks weren’t working well in the face of great earnings news. He suggested that the top of the market could be close if the “good news” was already fully priced.
Faced with this weakness, investors are withdrawing money from Wood’s funds. More than $ 290 million left Ark Innovation last week, according to FactSet. But this year, more than $ 7 billion flooded Wood’s ETFs.
Wood, as always, maintains the course during the pressure on her top holdings. Wood after Twitter’s share price fell 15% on Friday Added 843,194 shares of Twitter To Ark Innovation ETF And to 468,256 shares Ark Next Generation Internet ETF.. These positions are worth about $ 72.4 million, based on Twitter’s closing price on Friday.
Wood’s other ETFs also experienced intense selling pressure on Tuesday.The· Ark Next Generation ETF We lost 4.5% and weekly losses were over 6.5%.The· Ark Genome Revolution ETF And that Ark Autonomy Technology and Robotics ETF Lost 4.3% and 2.9% on Tuesday, respectively. Pairs have fallen 6.8% and 4.5% this week alone.The· Ark FinTech Innovation ETF It decreased by 4.25%, and the weekly loss was more than 5%.
The Ark Autonomous Technology and Robotics ETF is Wood’s only fund on this year’s green.
Wood became popular after arc innovation rose nearly 150% in 2020.
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Cathie Wood’s Ark Innovation ETF has fallen nearly 5% in tech sold-out and is now 30% off highs
Source link Cathie Wood’s Ark Innovation ETF has fallen nearly 5% in tech sold-out and is now 30% off highs