Outflows from the three index equity funds (ETFs) of Cathie Wood, the “goddess of stocks” who runs Ark Investment Management, have hit the largest outflows in the firm’s history after some of the company’s heavily bet stocks came under selling pressure.
The Ark Innovation ETF (ticker: ARKK), the company’s flagship fund, saw $465 million in outflows on the 23rd, according to Bloomberg data. Investors withdrew $202 million from the Ark Biogenetic Innovation ETF (ARKG) and $119 million from the Ark Next Generation Network ETF (ARKW).
Since Ark had $60 billion in assets under management as of last week, these outflows are only a fraction of that, but they are the largest outflows in the history of the company, which was founded in 2014,] and they are more than three times higher than the previous record written.
Wood’s ETFs were hit mainly by heavy selling pressure on U.S. technology stocks, leaving the company’s largest stake in tesla hit by an arrow. Wood told Bloomberg TV on the 23rd that she was happy with the correction and that she was buying more Tesla shares at a lower price.
According to Reuters, Ark 24 said the company bought $171 million worth of Tesla shares as the company’s stock price fell hard; Tesla’s closing price on the 23rd was the first Time this year that it lost $700.
According to Ark Investment Management’s website, the company bought Tesla shares in three tranches, worth $124 million, $39 million and $8 million, respectively. In addition, Ark also sold $126 million worth of TSMC (2330) shares on the same day.
The Ark Innovation ETF, with $26.6 billion in assets, was one of the best-performing ETFs last year with triple-digit performance. However, the fund was affected by Tesla and its performance dropped sharply this week, after all, Tesla accounted for 10% of the fund’s holdings, plus some of the company’s soaring holdings also dropped back sharply.
IHS Market data shows that Ark’s short balance in the number of tradable shares has exceeded 3%, the highest ever.
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