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Cathie Wood, CEO of ARK Invest.
Bloomberg/Alex Flynn
On Monday, Cathie Wood’s flagship exchange-traded fund, ARK Invest’s Cathie Wood’s Cathie Wood’s Cathie Wood’s Cathie Wood’s Cathie Wood’s Cathie Wood’s Cathie Wood’s Cathie Wood’s Cathie Wood’ From February to mid-May, the ARK Innovation ETF (ticker: ARKK), which invests in companies with disruptive technology or innovative business strategies, fell over 37%. The ETF had around $21 billion in assets before the dip; today it has $24 billion.
The group, which includes all of ARK’s ETFs, has been jittered as 10-year Treasury yields have risen and inflation fears have undervalued growth firms’ future cash flow.
The ARK funds, on the other hand, have been recovering as investors overcome their inflation anxieties and reinvest in innovative stocks. Since May 13, ARK Invest’s six actively managed ETFs have gained an average of 22%, with ARK Innovation leading the way with a 31.3 percent gain.
ARK Space Exploration & Innovation ETF is a mutual fund that invests in space exploration and innovation.
(ARKX) is trailing with gains of only 9.3 percent. ARK Innovation was trading over $130 per share at lunchtime, exceeding its previous high of $127.73 set on April 26. It is now more than 4% higher than it was at the start of the year, albeit it is still down 17% from its February high. Last week, Woods expressed her thoughts on inflation in a newsletter. “While others extrapolated those trends into the future, ARK has maintained that inflation will be temporary due to base effects from last year’s price collapses as well as supply chain bottlenecks that will result in double- and triple-ordering of supplies, a massive inventory overhang, and a commodity price collapse,” she wrote. In the last six weeks, both lumber and copper prices have fallen, according to Woods. “Despite considerable cuts in energy-related capital spending, we expect oil prices will not be far behind, particularly if drivers in the ride-sharing industry take advantage of the reduced total cost of EV ownership,” she said. Wood has been purchasing dips in firms she loves during the growth stock sell-off. She recently chose to profit on the most recent crypto correction: Last Tuesday, Bitcoin fell 20% in seven days to below $30,000, its lowest worth since late January. According to trading documents, Wood purchased 1 million shares in the company.
Bitcoin Trust in Grayscale
(GBTC) to the (GBTC) to the (GBTC) to the (
The ARK Next Generation Internet ETF is a mutual fund that invests in the next generation of
(ARKW), adding a half-percentage point to the cryptocurrency’s weight in the fund. On Monday, Bitcoin had recovered 18% and was trading about $34,200. Wood has been a crypto bull for a long time. Because there is no Bitcoin ETF available in the United States, the fund manager has been investing in the digital currency through a closed-end trust and progressively increasing her holdings. The Grayscale Bitcoin Trust is currently the ARK Next Generation Internet ETF’s seventh largest holding, accounting for 3.9 percent of its assets. Wood has also been establishing herself as a cryptocurrency exchanger.
Coinbase
Since the stock went public in April, Global (COIN) has seen a significant increase in value. Both the ARK Innovation and ARK Next Generation Internet ETFs now hold more than 3% of the stock. Coinbase’s stock rose 8.1 percent on Monday, but it’s still 26 percent below its all-time high of $328.28 at the end of its first trading day. Evie Liu can be reached at evie.liu@barrons.com.
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