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Loyal fans hang on despite Cathie Wood's asset fall
Ark Investment Management LLC's founder, Cathie Wood, had adopted some measures due to the recent changes in the market.
Despite this, her loyal fans continue to hold on for the ride. The firm was previously placed 7th as the largest issuer in the U.S. but now dropped down to 11th place.
This drop is largely contributed by the drop in value of her holdings, such as the tech stocks that previously had soaring high valuations and bullish runs that suddenly came to a stop and came back down.
ARK Innovation ETF (ARKK), her flagship, has dropped 35% from previous high. And while others anticipated stock pull out en masse once the stock underperformed, clearly the fans hang on to Wood's ideals. The pull out recorded only $76 million in April and $301 million in May, compared to the chip in of $7.1 billion for the first quarter.
The firm's ETF recorded to have taken in a net of $15.3billion as far as 2021 is concerned. Their two tracking indexes and six actively managed funds composes the eight product line up, and if computed, only lost about $800 million since the February.
The day traders seem to be ready to stick and hang around with Ark even while retail activity declined in the broad market. Retail investor's contribution to the funds are said to be $1.1 billion of the $28 billion added since November of last year, according the Vanda Research report.
Even while the drop is happening, Wood still strongly believe with her strategies' effectiveness. That means she's still planning to invest with a five-year time frame. She even posted her stakes, such as Peloton Interactive Inc., Twitter Inc., Skills Inc., and Roku Inc. last week. Some started wondering how long the drop will last especially the dip buyers.
Now, as long as ARKK can bounce back strongly, it will be meant to be successful as it is able to clear a big hurdle such as this.
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