ARK Investment Management LLC’s high-flying exchange traded funds are firmly in a bear market following another round of sharp declines on Friday.
The top five ETFs from star stock picker Cathie Wood’s New York asset management firm fell 4-7% in recent trading as tech stocks and other fast-growing stocks continued to sell. . Those declines have seen ARK funds tumble more than 20% from their most recent highs, reaching the traditional threshold used to determine when stocks and indices have entered a bear market.
ARK ETFs have tumbled beyond the broader stock market. The S&P 500, which ARK uses as a benchmark for its own funds, is 5% down from its February 12 high.
ARK’s flagship innovation fund has been hit the hardest. The $ 23 billion fund was down 31% from its previous high, with about half of those drops coming this week alone. The falls of the other ARK funds weren’t far off. This is likely because several of Ms. Wood’s fund shares are heavily exposed to growth trading, which the market has activated in the face of an increasingly steeper yield curve.
Some of ARK’s funds have significant positions in companies like electric car maker Tesla. Inc.,
Roku streaming service Inc.
and digital payments company Square Inc. All three stocks are at least 28% off their most recent highs.
Some of the recent losses appeared to evict more investors from the ARK funds. After two days of consecutive inflows, investors withdrew $ 150 million from ARK’s innovation fund and $ 112 million from its genomics group on Thursday.
Copyright © 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8