The founder of Ark Investment Management LLC now controls $ 39.7bn of its U.S. stock exchange fund, down from more than $ 60bn at a peak in February, according to data compiled by Bloomberg.
In the recent tech hike, the money Cathie Wood managed in her ETF lineup has fallen to less than $ 40 billion – but her loyal fan base is always hanging on for a ride.
The founder of Ark Investment Management LLC now controls $ 39.7 billion of its U.S. -traded funds, down from more than $ 60 billion at a peak in February, according to data compiled by Bloomberg. The company is already the 11th largest issuer in the U.S., compared to seventh place earlier this year.
A large portion of the loss was lost due to the amount of his grips falling sharply, as speculative tech names with rising prices and multiple runs returned to the ground. Its parent ARK Innovation ETF (ARKK) fell about 35% from its high. However, the mass release expected by some in a period of shortfall has yet to materialize, with traders getting $ 76 million from the fund in April and $ 301 million to date in May, compared to $ 7.1 billion added in the first three months of the year.
“It appears that investors still believe in Cathie Wood’s philosophy and think it’s possible that the downturn is short-lived,” said Mohit Bajaj, director of ETFs for WallachBeth Capital.
In fact, the company’s ETFs will still earn a net $ 15.3 billion through 2021. The eight product lines – six active managing funds and two tracking indices – will nearly lose net $ 800 million from end of February.
While the trading activity is prohibited in the broad market, as of today traders are ready to stay in the Ark. About $ 1.1 billion of the $ 28 billion added by the family in funds from November could be dedicated to marketing investors, according to a report from Vanda Research.
“In times where Ark ETFs have seen huge redemptions, market investors have actually bought the sink, further emphasizing the market and trade split,” wrote analysts Ben Onatibia and Giacomo Pierantoni.
Throughout the descent, Wood has always said that his strategies have not changed and that he has invested in a five -year period. He even increased his stakes on Twitter Inc., Roku Inc., Skillz Inc. and Peloton Interactive Inc. last week.
Some are now questioning how long the fund will grow, especially as investors sink into it. ARKK rose in early trading before falling 3.3% as of 1 p.m. in New York.
Open interest in ARKK’s bullish call options has been around for a long time, and despite the same increased activity in bearish put contracts that historically came before the launch, Susquehanna’s Chris Murphy International Group wrote a letter.
“It’s been sold on a technical basis,” said Matt Maley, chief market strategist at Miller Sword & Co. “Weak hands have already been sold, so we’re in ‘wait and see’ mode. If Ark’s funding can be very strong, all clear flags will be taken.”