ARK Invest
- Cathie Wood’s Ark Invest bounced back from record outflows last week with near record inflows, according to data compiled by Bloomberg.
- The Ark Innovation Fund saw $464 million in inflows on Friday, representing the second-biggest day of inflows on record.
- Wood has stuck to her high-growth strategy amid the recent market volatility, selling shares of large cap names like Apple and Amazon to fund purchases of higher-risk stocks like Tesla.
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Investors aren’t abandoning Cathie Wood’s Ark Invest following a volatile week in the stock market, according to recent fund flow data compiled by Bloomberg.
The ARK Innovation ETF saw near-record inflows of $464 million on Friday, signalling that investors were willing to buy the near 20% dip in the ETF. The best day of inflows for the ARK Innovation ETF was more than $600 million in early January, according to Bloomberg.
The second-largest day of inflows for ARK came after record outflows, with the ARK Innovation ETF losing $465 million last Monday. Altogether, Ark Invest shed about $5 billion in assets under management last week, which is just a fraction of the firm’s more than $60 billion in ETF assets, according to Bloomberg.
The ARK funds struggled last week amid a tech-heavy sell-off that was spurred by a spike in interest rates and concerns about rising inflation. Wood’s most concentrated bets, Tesla and Bitcoin, traded down more than 20% amid the decline.
But Wood hasn’t backed down from her strategy of investing in highly disruptive companies amid the decline. Based on the firm’s daily trading activity, Ark Invest was consistently selling large-cap names like Apple and Amazon to fund purchases of riskier companies like Tesla and Palantir.
Investors who bought the dip in the ARK Innovation ETF were rewarded on Monday, when the ETF surged nearly 5% amid a broad rally in the stock market. The Ark Innovation ETF is up 10% year-to-date as of Monday's close.