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“Cathie Wood's Popular ARK Funds Are Sinking Fast” (Article - WSJ)

hank
edited April 28 in Fund Discussions
From Wednesday’s Wall Street Journal:

”Investors have pulled a net $2.2 billion from the six actively managed exchange-traded funds at her ARK Investment Management this year, a withdrawal that dwarfs the outflows in all of 2023. Total assets in those funds have dropped 30% in less than four months to $11.1 billion—after peaking at $59 billion in early 2021, when ARK was the world’s largest active ETF manager. “

ARK (ARK Innovation ETF) is down 15.85% YTD after gaining 67% + in 2023 (Morningstar)

(requires subscription)
https://www.wsj.com/finance/investing/ark-funds-cathie-wood-investors-56e2950c?st=ezyihgf7p1r7b9u&reflink=article_copyURL_share

“Long-term” investors? Or GTHOOH?

Comments

  • MarkMark
    One credible source I follow has postulated that large institutional holders (pension funds, 401K funds, etc.) are rotating out of large cap growth tech and moving into value and bond funds for whatever that's worth to anyone. I can't read this article due to the paywall.
  • Sven
    It is a combination of poor stock picking and doubling down on those stocks including Tesla, Zoom Video Communications and Roku. Tesla itself is down 45% this year as the Chinese EVs have overtaking Tesla at a fraction of the price. Something can be said about the benefit of broad diversification such as S&P500 index.
  • Baseball_Fan
    just wait until this week when ole' Yeller drains the TGA...thus providing more liquidity for the banking sector and stimulating the economy....watch the growth side of the ledger bang up quicker than the value side...bond yields come down...and yes, I stepped in hard into PHEFX late last week.

    Get your popcorn ready, we'll see what happens...who know, for certain I do not....
  • hank
    edited April 28
    @Mark. Sorry you couldn’t pull up the article. Didn’t miss much IMHO. It goes over the reasons others cite here - especially the fund’s concentration in 7 or 8 big holdings.

    Later on states: ”By the end of last year, ARK funds had destroyed more wealth than any other asset manager over the previous decade, losing investors a collective $14.3 billion, according to Morningstar.”

    Thanks for the insider informed take on the markets. Could well be the case.

  • Sven
    @hank, if you are subscribe to Apple News, many (but not all) WSJ articles are available. Just type in the title for the search. I think Mark is spot on that investors are rotating to value stocks after the big run up.
  • yogibearbullyogibearbull
    This is a rehash/update of an old M* article,
    https://www.morningstar.com/funds/15-funds-that-have-destroyed-most-wealth-over-past-decade
  • hank
    edited April 29
    Sven said:

    @hank, if you are subscribe to Apple News, many (but not all) WSJ articles are available. Just type in the title for the search. I think Mark is spot on that investors are rotating to value stocks after the big run up.

    @Sven. I actually subscribe to the WSJ digital. Tried Apple News once and discontinued it because coverage of any one source was too spotty. Got a very good 3 year sub on the WSJ thru digitalandprint.com. Others might want to check it out. Also Barron’s same way. Not as cheap as those “introductory” offers from the source, but a lot less expensive longer term.
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