When Cathie Wood's flagship fund hit a new low in 2024, she bought a large number of stocks of technology companies that were hit hard in the market crash.
According to the Intelligence Financial News App, Cathie Wood bought a large amount of stocks of technology companies that were hit hard in the market crash when her flagship fund, the ARK Innovation ETF (ARKK.US), hit a new low in 2024. It is reported that Wood's fund also increased its shareholding in Amazon (AMZN.US), AMD (AMD.US), Roku (ROKU.US), as well as Reddit (RDDT.US) and Meta Platforms (META.US) through her financial technology fund, taking advantage of the opportunity presented by the widespread decline in the stock market.
At the beginning of this week, weaker-than-expected US employment data sparked concerns about an economic recession and caused turbulence in global markets. As the main force behind the previous rally in the stock market, technology stocks have suffered significant losses recently, even though many stocks have maintained gains this year.
However, Wood's ARK Innovation ETF did not enjoy such gains. This actively managed fund has already experienced losses this week and continues to fall. It hit its lowest point since November at the close of trading on Wednesday. Since the beginning of this year, the fund has fallen more than 20%, with its value shrinking by about 75% from its high point in early 2021.
Todd Sohn, ETF strategist at Strategas, pointed out that "the past few years have indeed been a challenge for the ARK Innovation ETF." Regarding Wood's recent purchases, he commented, "ARK has always made highly firm and concentrated investments through its ETF - the team tends to increase long-term investments in its most firm beliefs by taking advantage of the sharp market downturn."
In 2020, thanks to the strong performance of technology stocks, Wood's ARK Innovation ETF soared by 150%, winning the favor of many individual investors. Although the fund's performance has been volatile in the following years, including losses in 2021 and 2022, investors have continued to have confidence and invest in the ETF. However, this enthusiasm seems to be waning.
As of the close of trading on Tuesday, investors have withdrawn $2.2 billion from the ARK Innovation ETF in 2024 so far, making it the fund's biggest year of outflows since its inception in 2014. According to data compiled by Sohn at Strategas, Wood's seven active ETFs have seen outflows of $11.5 billion since the beginning of 2021.
Representatives of Ark Investment Management have not immediately commented on these market changes.